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

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