Harrisburg, PA – Governor Tom Wolf released the following statement on the bipartisan support and final passage of Senate Bill 1, the pension reform compromise bill, which now heads to his desk for his signature:
“The passage of Senate Bill 1 is an example of how Harrisburg can come together to make progress on issues that matter to the people of Pennsylvania. The collaborative and cooperative process that led to consensus is a byproduct of both Republicans and Democrats working with my administration to achieve significant reform.
“This pension compromise achieves my foremost goals: continuing to pay down our debt, reducing Wall Street fees, shifting risk away from taxpayers, and providing workers with a fair retirement benefit, while providing long-term relief to school districts.
“I look forward to joining members of the House and Senate, from both sides of the aisle, to sign this important bill into law.”
The pensions reform compromise bill makes important progress including:
- It achieves the Governor’s foremost goals: continuing to pay down our debt, reducing Wall Street fees, and shifting risk away from taxpayers, all while providing workers with a fair retirement benefit.
- The new plan achieves these priorities by preserving a Defined Benefit pension, while also introducing a full Defined Contribution – 401(k) style plan option for new employees.
- It will save billions of dollars on the unfunded liability and will charge both retirement systems to reduce their Wall Street management fees by a combined $3 billion dollars.
- Achieving this compromise will also provide long-term relief to school districts, ensuring more future state dollars go directly into the classroom.