HARRISBURG, Pa., June 18, 2015 /PRNewswire-USNewswire/ — Pennsylvania AFL-CIO President Rick Bloomingdale and Secretary-Treasurer Frank Snyder agree with the actuarial analysis released by the Public Employees Retirement Commission (PERC), which indicates the huge added transition costs – $31 billion – resulting from closing off defined benefit pensions to younger workers and moving them into a less secure 401 – (k) type of plan.
“Today’s actuarial report confirms once again, what we have been saying for months, in fact for the past several years, that cutting the pensions of hundreds of thousands of dedicated employees, who have always made their pension contributions, will not reduce the pension debt but will add significant additional debt to the pension systems. Switching new employees to 401 – (k) type pensions will cost taxpayers an additional $31 billion over the next three decades and eliminate the retirement security for thousands of school employees and public service workers. It’s time our legislative leaders stop playing politics with our pensions. It’s time to stop the madness, start paying your bills and get to work on passing a responsible budget that doesn’t sidestep the issue of paying down the pension debt,” President Bloomingdale said.
“Today’s report should put an end, once and for all, to the madness in Harrisburg about trying to solve problems by making them even worse. It warns us that the proposals to cut pensions even further does not solve the problem, but rather it makes it much worse at the expense of taxpayers and public service workers that educate and care for our children and parents and make our communities safe. It’s time to stop the madness, get serious about passing a responsible budget and start putting people back to work, not attack good jobs, decent wages, and the retirement security of working families,” Secretary-Treasurer Snyder said.
SOURCE Pennsylvania AFL-CIO