Pension Reform Bills Pass House Committee

Two bills that would drastically change the public pension system in Pennsylvania have cleared the committee hurdle in the state House of Representatives.

The legislation passed the House State Government Committee Tuesday after a lengthy partisan debate over motives, effectiveness and even the timing of the committee meeting, which began at an earlier-than-usual 8:00am. Committee Chairman Daryl Metcalfe shot down Democrat attempts to table the bills, which now go to the full House.

During the debate, Metcalfe said that curtailing the retirement benefits of public sector employees might reduce their desire to be long-term public servants, suggesting that short-term tenures would be better for the state.

Metcalfe is an 8-term Republican member of the state House (16 years), with no indications he is opposed to running for a 9th term.

The legislation would make the shift to a 401k-style defined contributions retirement plan for all new state employees starting in 2015. Metcalfe says the bills also limit so-called “spiking,” whereby a state employee can work overtime or take a short-term promotion at the end of their career in order to raise their salary and thereby collect higher benefits in retirement.

Democrats suggested during the committee debate that the focus of the discussion had shifted to an outright contempt of public employees.

The Senate is also working on pension reform legislation and the issue is one of Governor Tom Corbett’s top priorities this legislative session.