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FOR IMMEDIATE RELEASE |
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State
Rep. John Yudichak |
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Yudichak crafts bill to address looming state pension crisis
HARRISBURG, Feb. 3 – State Rep. John Yudichak, D-Luzerne, is introducing legislation that would help address the looming state pension crisis.
Yudichak's bill would charge the Legislative Budget and Finance Committee with examining the current operation of the Pennsylvania State Employees Retirement System and the Pennsylvania Public School Employees Retirement System and make short-term and long-term recommendations to limit excessive tax increases on residents while maintaining the integrity of each pension system.
"The Commonwealth is staring down the barrel of billions of dollars in pension losses that will dramatically impact budget decisions made by state and local officials," Yudichak said.
Pension fund analysts project the employer contribution rate for 2012-13 may exceed 20 percent – and that the much higher rate would likely be in effect for at least four or five years. Over the past decade, the contribution rate has ranged from 0 percent to 4 percent.
Yudichak noted that the contribution rate paid by employers is ultimately paid by Pennsylvania taxpayers in the form of real estate and income taxes. A severe increase in the employer contribution rate could result in large tax increases across the state.
"In an environment where most Pennsylvanians are facing major losses in their individual 401K plans, or losing their benefits entirely, state government must responsibly manage its pension funds without placing undue burdens on taxpayers," Yudichak said.
In 2001 Yudichak opposed Act 9, which allowed for a 50 percent increase in pension benefits for legislators. Moreover, Yudichak was one of only a handful of legislators who refused to accept the Act 9 of 2001 pension increase.
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