HARRISBURG, Pa. — On Tuesday, a bill aimed at increasing pensions for over 60,000 retired government and school workers successfully passed through the Pennsylvania House with a significant majority, despite warnings from critics that it could impose a $1 billion burden on taxpayers.
The measure, which received a 135-67 vote, is now headed to the state Senate, which is currently controlled by the Republicans, as the legislative session nears its conclusion.
This legislation targets municipal police officers and firefighters who have been retired for at least five years, in addition to teachers and state employees who retired prior to July 2, 2001. According to a financial assessment conducted by the House, pension increases for teachers and state workers are projected to fall between 15% and nearly 25%, varying based on their retirement dates.
Proponents of the bill contend that public sector retirees historically received regular cost-of-living adjustments. Majority Leader Matt Bradford, a Democrat from Montgomery, emphasized the need for these adjustments during a discussion in the House. “They’ve had to make do because we haven’t done,” he stated. “Let’s give these folks the dollars they need to provide for themselves, since they have provided for us for so long.”
Conversely, Republican opponents criticized the bill as financially impractical. They argued that it is difficult to justify a pension increase to taxpayers, especially those who do not benefit from traditional pensions but will still be required to finance these raises. The bill is anticipated to add $332 million to the unfunded liability for the State Employees’ Retirement System and an additional $614 million for the Public School Employees’ Retirement System, according to the financial analysis.
“This is very expensive,” commented Brad Roae, a Republican from Crawford, addressing concerns about the state’s existing public pension systems, which are already grappling with significant unfunded liabilities. He cautioned that the bill poses a threat of increasing local property taxes, particularly impacting school funding.