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FOR IMMEDIATE RELEASE |
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State
Rep. Peter J. Daley |
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Daley introduces 30 and out bill
HARRISBURG, Feb. 12 – House Commerce Committee Chairman Peter J. Daley, D-Washington/Fayette, today reintroduced his two early retirement proposals for teachers and state employees in the 2009-10 session.
House Bill 30 is an early retirement bill for teachers and H.B. 31 is an early retirement bill for state employees. The proposal requires two separate bills because of the different administrative provisions in each. There are significant differences in the procedures necessary for the recapture of net savings from the early retirement of more senior workers and teachers.
"The governor announced last week during his budget address that there will be layoffs," Daley said. "We need to urge the governor to support this legislation. This could be one outlet to help save some of those jobs."
Daley explained that these bills are "pay as you go" proposals. If enacted, they will be funded solely from the actual savings of hiring younger teachers and workers, and will accomplish an objective of saving millions of dollars and creating jobs in a struggling economy.
"It’s no different than the early buyouts now being offered by many major corporations to achieve a smaller workforce."
Daley said previous surveys have shown that most Pennsylvania retirees tend to keep their principal residence in Pennsylvania, meaning that they will spend a good portion of their retirement income in the local economy, thus investing back into Pennsylvania.
In 2006, the results of a comprehensive cost-benefit analysis and policy study of early retirement proposals concluded that the Commonwealth would save about $217 million with an early retirement bill.
The study was the result of legislation (H.R. 299) introduced by Daley in 2005.
The approval of an early retirement bill could open as many as 10,000 teaching jobs and almost 4,000 state civil service positions, according to Daley.
Both bills would offer a "window" of early retirement without penalty. Criteria for the early retirement would be either 30 or more years of service, or a combination of age and years of service equal to 80.
"This is a win-win situation. It would allow teachers and state employees who are ready to leave the system to do so and create jobs for our young people while saving money in the form of lower starting salaries for new employees," Daley said.
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