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Corman pitches pension reform at PHIA breakfast

May 7, 2015 by · Comments Off on Corman pitches pension reform at PHIA breakfast
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IMG_1995The additional resources needed to support Gov. Tom Wolf’s proposed budget will not be forthcoming without first addressing the state’s pension issue, Senate Majority Leader Jake Corman (R-Centre) told several dozen attendees at a breakfast hosted by the Pennsylvania Highway Information Association.

Corman, a longtime supporter of ample transportation funding, lauded the safety improvements to highways made possible by the passage of Act 89 in 2013. His constituents and all Pennsylvanians will see the benefits as the funding increases move ahead.

But he emphasized that neither the highway industry nor any other group receiving resources from the state can escape the impact of the increased pension obligation. Pensions are one of the largest cost-drivers of the entire state budget, and the pension system must be modernized to shift the risk away from taxpayers and to free up resources for other programs and services.

Corman informed the group that his caucus is working on a solution that could bring savings to the state by enrolling new state hires in a defined contribution plan instead of a defined benefit plan. Continuing to devote increasing resources to the pension deficit without reform is unacceptable, he said.

House Majority Leader Dave Reed will be the next breakfast series guest on June 17. The series is sponsored by the American Council of Engineering Companies, Burns Engineering and PennStress.