Retirement Security

With Public Pensions Done, It’s Time Now for a Victory on Retirement Security...and a Great State Budget

Roughly five years after Gov. Corbett first began an effort to eliminate guaranteed pensions for future school and state employees, Gov. Wolf today signed a bill that reduces the guaranteed portion of future pensions by about three-eighths (because the pension increases with each year of service by 1.25% of final salary instead of 2%). Alongside this smaller guaranteed pension, future employees will receive a 401(k)-style savings account. If these savings are converted into a second monthly check – an “annuity” – “actuaries” estimate (Table 9, p. 19) that the total retirement benefit for future career employees will be within 16% to 18% of the retirement benefit received by employees under the prior (Act 120) pension plan (enacted in 2010).

In sum, the enacted pension compromise is a smaller cut in benefits than earlier “hybrid” (combined DB-DC) proposals (such as this one with a smaller DB multiplier). Together with Social Security, the new hybrid pension will maintain retirement security for future school and state employees.

Last Chance for Sen. Toomey to Vote with Main St. Savers on Retirement Security

We hear from our friends in Washington DC that a U.S. Senate vote on a House Joint Resolution (H.J. Res. 66) that would impede states from improving retirement security for private workers could come today or tomorrow. It won’t come to a vote unless Republican leaders in the Senate think that the resolution will pass – so now is the time for Pennsylvanians to make their voice heard with Sen. Toomey. If he votes against H.J. Res 66 as he should, joining Tennessee Republican Bob Corker, that can send it down.

KRC on U.S. Senate Action to Prevent Cities from Improving Retirement Security for Private Sector Workers

We issued the following statement in my name this week in response to the U.S. Senate vote on H.J. Resolution 67 blocking a rule that would make it easier for cities to help private-sector employees save for retirement.
 
 
“Earlier today, Pennsylvania Senator Pat Toomey joined all but one member of the Republican Majority in the U.S. Senate to block large cities such as Philadelphia, New York, and Seattle from empowering employees of private-sector companies to save for retirement. Sen. Toomey and his colleagues made clear that they stand for the Wall Street financial firms who charge bigger fees to individuals who set up retirement savings plans on their own. Sen. Toomey and his colleagues stand against the Main Street retirees that would benefit when big cities bargain lower fees from financial services vendors and use competitive bids to select high-quality savings options.

On Retirement Security, Senators Casey and Toomey, Which Side Are You On?

There's another "which side are you on?" issue under consideration in Washington D.C., and it could come before Senators Casey and Toomey in a vote as early as this week.

The issue is retirement security in the private sector.

Every one of Pennsylvania's 13 Republicans in the U.S. House of Representatives has already spoken. They are against itretirement security in the private sector that is. That means they are also against Main Street and for Wall Street. Good to know. 

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