PRINTER'S NO. 618
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE RESOLUTION
No.
59
Session of
2021
INTRODUCED BY MERSKI, SANCHEZ, NEILSON, MALAGARI, CIRESI,
FREEMAN, HARKINS, T. DAVIS AND KENYATTA, FEBRUARY 24, 2021
REFERRED TO COMMITTEE ON STATE GOVERNMENT, FEBRUARY 24, 2021
A RESOLUTION
Directing the Legislative Budget and Finance Committee to
conduct a cost analysis study of an early retirement proposal
for members of the State Employees' Retirement System and the
Public School Employees' Retirement System.
WHEREAS, In the past, the State Employees' Retirement System
(SERS) and the Public School Employees' Retirement System
(PSERS) have allowed members, on occasion, to take an early
retirement during a certain time period so long as the members
met specific requirements; and
WHEREAS, In 1992 and 1993, an early retirement incentive was
offered to public school employees in this Commonwealth which
saved approximately $216 million in salaries but increased the
pension liability by $284 million; and
WHEREAS, A study was conducted by the Legislative Budget and
Finance Committee in 2005 in which the advantages and
disadvantages of allowing for early retirement from SERS and
PSERS were analyzed fiscally and actuarially to determine if an
early retirement option should be established for State and
public school employees; and
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WHEREAS, Additional studies on the benefits or drawbacks of
an early retirement option have not been conducted since 2005;
therefore be it
RESOLVED, That the House of Representatives direct the
Legislative Budget and Finance Committee to conduct a cost
analysis study of early retirement for members of SERS and PSERS
who are 55 years of age or older or who have at least 30 years
of service; and be it further
RESOLVED, That the analysis include:
(1) the possible cost savings for the Commonwealth if
early retirement were allowed for the span of one year, five
years or ten years;
(2) the value of early retirement programs in providing
employment for younger workers;
(3) the potential impacts on the mix of critical skills
and experience within Commonwealth agencies and school
districts and the various alternatives to maintaining or
ensuring adequate staffing in the context of retirement
enhancements; and
(4) the past impact of early retirement incentives on
budgets and workforce needs;
and be it further
RESOLVED, That the Legislative Budget and Finance Committee
be authorized to request actuarial studies for the study on
behalf of the House of Representatives; and be it further
RESOLVED, That the Legislative Budget and Finance Committee
use other studies and existing resources that may assist in
completing the study; and be it further
RESOLVED, That a report on the study be submitted to the
State Government Committee in a public forum during the month of
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September 2021 and that the report be disseminated promptly
thereafter to all members of the General Assembly and the
Governor for consideration.
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