Speaker Mike Turzai.

Majority Leader Reed.

Pennsylvania General Assembly Bill Information.

Senate Bill 1 2017-2018

Short Title:

An Act amending Titles 24 (Education), 51 (Military Affairs) and 71 (State Government) of the Pennsylvania Consolidated Statutes, extensively revising pension provisions as follows: In Title 24: for retirement for school employees, in the areas of preliminary provisions, of membership, contributions and benefits, of school employees' defined contribution plan and of administration and miscellaneous provisions; and for health insurance for retired school employees, in the area of preliminary provisions. In Title 51: for employment preferences and pensions, in the area of military leave of absence. In Title 71: for boards and offices, in the area of Independent Fiscal Office; and for retirement for State employees and officers, in the areas of preliminary provisions, of membership, credited service, classes of service and eligibility for benefits, of contributions, of benefits, of State employees' defined contribution plan and of administration, funds, accounts, general provisions. Providing, as to the revisions: for construction and administration, for applicability, for liability, for member statements and for suspension of provisions of the Public Employee Retirement Study Commission Act.

Yeas 143

Nays 54

Lve 7

Total 203

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As released by the Governor's Press Office.

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.