State House members will vote on pension

The Associated Press

HARRISBURG — State House members returning Monday may vote on a pension measure advocated by some unions and lawmakers as necessary to prevent huge costs increases for local governments but criticized by a conservative group as “generation theft.”

Outgoing Gov. Ed Rendell urged members to return to voting session to pass the bill aimed at blunting an expected spike in public pension costs. The pension contributions amount to about 5 percent of state payroll and school district payroll this year and are due to go up to 8 percent of payroll in 2012 under current law.

But in 2013, costs would rise to 26 percent of payroll, which the measure would cut that to 11.5 percent of payroll. In 2014, costs for pension that would rise to 29 percent of payroll under current law would be trimmed to 16 percent.

Unions such as the Pennsylvania State Teachers Association, the American Federation of State, County and Municipal Employees and the Service Employees International Union are urging approval, noting that the measure contains a provision lowering future pension benefits for newly hired workers.

“If the House does not address this issue before the legislative session ends Nov. 30, school districts will be staring at double-digit increases in their pension contributions and facing pressure to increase property taxes,” said James Testerman, PSEA president.

The Commonwealth Foundation, however, said Friday the bill would moderate costs for the next dozen years but increase them sharply in the mid-2020s.

“This is generation theft — it steals from our kids and grandkids,” said Matt Brouillette, foundation president. “It’s like not paying your mortgage and saying you’re saving money. You’re not. It will have to be paid.”

Wythe Keever of the PSEA, however, told the Pittsburgh Post-Gazette that he rejected that charge.

“Legislation to pay off this on a more affordable schedule that takes into consideration the plight of taxpayers can hardly be characterized as generational theft,” Keever said.

The Commonwealth Foundation also echoed earlier complaints by some lawmakers and other critics that the bill may violate the constitution’s single-subject provision since it also creates an independent fiscal office.

Senate leaders have ruled out any postelection votes, meaning that the House’s lawmaking options are limited to approving bills previously approved by the Senate, which cannot be changed since that would require approval of the other body.