HARRISBURG – The Senate approved a historic pension reform bill Monday that will transform public employee retirement benefits for the 21st century and limit future financial risks for taxpayers, according to Senator Wayne Langerholc Jr. (R-35).
“I’m ecstatic that I could be an important part of a historic vote,” Langerholc said.
“It’s evident in the roll-call vote that this is no longer a partisan issue, and the passage signals a bipartisan effort to tackle one of, if not the most, troubling problem facing our Commonwealth.”
Senate Bill 1 is projected to save more than $5 billion and shield taxpayers from $6.5 billion or more in additional liabilities if state investments fail to meet projections.
In addition, the bill creates a new Pension Management and Asset Investment Review Commission to study ways to reduce investment costs with the goal of saving an additional $3 billion.
Pension benefits already earned by current employees and retirees will not be affected.
“Since my election to the Senate, I have been working toward meaningful pension reform, and this is the result of months of intensive discussion and hard work,” said Langerholc.
“It’s important to put words into action, and I look forward to joining the majority of my constituents who have similar plans, and in becoming one of the first to sign up for the new 401(k)-style, defined contribution plan outlined in Senate Bill 1.”