POSITION STATEMENT 0309-01
IN SUPPORT OF STATE AND PUBLIC SCHOOL EMPLOYEE PENSION REFORM

WHEREAS, In 2001, the state Legislature raised legislative pension benefits by 50 percent and state and public school employee pension benefits by 25 percent, while reducing the contribution rates; and

WHEREAS, the reduced contribution requirements eliminated the budget capacity at the state and school district level; and

WHEREAS, the Legislature was using a formula that was too inflexible to respond to the plummeting market values from 2001-2004; and

WHEREAS, in 2012, contributions will have to be dramatically increased to fully fund pension benefits and cover billions in increased pension spending; and

RESOLVED, That The Lancaster Chamber of Commerce & Industry's Board of Director's strongly encourages policymakers to immediately address the fiscal issues surrounding the state and public school pension system; and be it further

RESOLVED, That The Chamber supports the following policies as a means to mitigate tax liabilities on taxpayers:

  • Effective immediately, place all new hires into a defined contributions system.
  • Set a minimum contribution floor rate to protect future assets.
  • Pass legislation that allows school districts and related entities to set aside reserves to prepare for known rate spikes.
  • Oppose efforts that shift tax liabilities down to the local level.
  • Consider all options to mitigate and reduce future liabilities, including, but not limited to, reducing the rate multiplier for all new hires.

Approved, as amended:                            Chair:                                  Date:

Education Task Force                                Diane Tyson                    October 28, 2009
Taxes & Fiscal Policy Committee            Tony Chivinski                 November 4, 2009
Advocacy Council                                        Pete Scudner                   November 6, 2009
Executive Committee                                 Steve Geisenberger        November 9, 2009
Board of Directors                                      Steve Geisenberger        November 17, 2009

<< Back to Position Statements