Kampf’s Bills to Reform State Pension System Vetted at Hearing
HARRISBURG -- The House State Government and Finance committees held a hearing on legislation, including bills sponsored by Rep. Warren Kampf (R-Montgomery/Chester), to reform the state’s severely underfunded pension system.
Kampf’s proposal would require future state and school district employees to enroll in an employee-directed defined contribution plan, similar to 401(k) plans prevalent in the private sector, instead of a defined benefit plan. Current state workers would have the choice to stay with the current system or join the employee-directed plan.
“The current pension system is unsustainable,” Kampf said. “It is underfunded by more than $30 billion. As leaders we must address these types of issues that have severe and drastic implications on budgets at every level within the Commonwealth. We were elected to face these problems. Further, it removes the burden from taxpayers for market fluctuations and historic mishandling of pension obligations for future employees.”
Kampf’s House Bill 2453 addresses state employees, while House Bill 2454 addresses school district employees. Both were discussed at the hearing.
“We must address this issue as pension contributions create a ripple effect downstream for all other line items,” Kampf said. “We just cannot continue to expand a program that is crippling the finances of school districts across the state.”
State Representative Warren Kampf
157th District, Pennsylvania House of Representatives