|Posted:||May 6, 2015 03:52 PM|
|From:||Representative Dan Frankel|
|To:||All House members|
|Subject:||Public School Employees’ Retirement System (PSERS) Reform Act|
|In the near future, I will introduce the Public School Employees’ Retirement System (PSERS) Reform Act, which will implement pension reform proposals championed by Governor Wolf in his 2015-2016 budget. I hope you will join me in support of this legislation.
The bill will establish a special restricted revenue account to ensure the Commonwealth’s annual payment for PSERS is not compromised. By doing so, the pension payment for PSERS will be disengaged from the funding of K12 and will ensure future pension payments are made in full. Additionally, this legislation will provide financial assistance to our struggling school districts in fiscal year 2016/17 by transferring $80 million in new revenues generated from modernizing our wine and spirts system to supplement school districts’ employer contributions to PSERS.
Finally, the legislation refinances $3 billion of PSERS’ unfunded liability with all proceeds being used for a significant infusion of cash into the PSERS fund, which will reduce the future unfunded liability by an estimated $8 billion. Beginning in 2017/18, the full cost of debt service for the refinancing will be paid with new revenues generated from modernizing our wine and spirits system. This strategic action will reduce school districts’ pension payments, providing our school districts necessary, long-term budgetary relief.
I believe that this is an important step forward to address PSERS’ unfunded liability and assist our school districts. It is an important component of Governor Wolf’s budget proposal, and I hope you will consider signing on as a cosponsor.
Introduced as HB1149