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Conservative Reform Network

Conservative Reform Network Newsletter

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Conservative Reform Network
The Newsletter for Independent, Conservative Political Activists

In This Issue
Conservative Reform Network
Pension COLA Bill
Pension Vote HB2084
PA Pension Dilemma

Conservative Reform Network

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Dear Lowman,

It was good connecting with everyone at the Pennsylvania Leadership Conference last weekend. As we mentioned, The Election Edition of the Conservative Reformer was mailed. If you want to receive a mailed copy next time, follow the link at the bottom of your email to update your preferences (including indicating if you want us to mail you a FREE copy of the next Conservative Reformer).

House State Government Committee Passed a Pension COLA Bill

The House State Government Committee passed a Pension COLA Bill. Representative Matt Baker is driving this spending initiative. And where Matt Baker is, Representative Pickett can't be far behind. Every Republican State Government Committee member voted "yes", a vote for bigger government.

This is not a good idea. Spending sets the stage for tax increases. You are paying other people's pensions. Who pays yours?

Any thoughts? There has been no increased productivity. The impact on local school districts has not been calculated in. That is separate issue. Representative Matt Baker, R-Tioga, a key backer of the measure, said he and many other legislators have been hearing from retirees about their need for financial relief.

Key phrases in the news article: PA House Panel Advances bill to Boost Government Pensions.

The estimated cost is $10.4 billion over 20 years, but an actuarial analysis should produce a more precise figure

The higher pensions would cost the State Employees' Retirement System an estimated $174 million annually for 20 years.

Last year, the average pension in the state employees' system for people who retired at normal age was about $21,000.

Pennsylvania's teachers' pension fund earned 13.8 percent last year, while the state workers' pension fund's return was 17.2 percent

House Majority Leader Bill DeWeese, D-Greene, was an early supporter of such a pension boost, a spokesman said.

A spokesman said Gov. Ed Rendell will not endorse the legislation unless its supporters convince him they can raise the billions of dollars it requires.

Pension Vote Committee HB2084
Lockstep vote to spend more money! Represenatatives Gingrich and Grall are part of Perzel Establishment and can be expected to vote for increased spending. Conservatives Rapp, Benninghoff, Creighton are considered part of the Conservative Reform Network and their votes are surprising. Representative Vereb from Montgomery County is not part of any faction and is generally sensitive to spending that will result in tax increases.

Committee STATE GOVERNMENT

Date April 29, 2008

Bill/Resolution HB2084 PN2940

Type of Motion Report Bill As Amended Maker of Motion Rep. Vereb Seconded by Rep. Kula Brief Description An Act amending Titles 24 (Education) and 71 (State Government) of the Pennsylvania Consolidated Statutes, providing for supplemental annuity commencing 2007.

MAJORITY MEMBERS AYE
NAY
NV

Josephs, B. - Chair x

Blackwell, T. x

Carroll, M. x

Cohen, M. x

Curry, L. x

Fabrizio, F. x

Freeman, R. x

Gibbons, J. x

Kortz, W. x

Kula, D. x

O'Brien, M. x

Oliver, F. x

Parker, C. x

Ramaley, S. x

Vitali, G. x

Youngblood, R. x

MINORITY MEMBERS AYE
NAY
NV

Baker, M. - Chair x

Benninghoff, K. x

Clymer, P. x

Creighton, T. x

Gingrich, M. x

Grell, G. x

Mantz, C. x

Marshall, J. x

McIlhattan, F. x

Quigley, T. x

Rapp, K. x

Vereb, M. x

Watson, K. x

AYES: 23

NAYS: 0

NV: 6

Passed

PA Pension Dilemma - Positive Plan

The Pension Bomb (the 2012 Spike - see below, "Getting Out of the Pension Dilemma) is being ballooned even further by Nelson McCormick, president of the 18,000-member Pennsylvania Association of Retired State Employees on behalf of those who left their public jobs before the 2001 pension bump (50% for legislators and 25 for all other state employees, including teachers; this was one last giveaway as Governor Ridge resigned to head up pork laden Homeland Security office). These retirees feel shortchanged although they never did anything to earn the pension increase and they are now seeking a legislative remedy to improve their existing benefits, despite the projections of higher taxpayer costs in the near future.

See Commonwealth Foundation's Richard Dreyfuss Mutually Exclusive: Pension COLAS and Lower Taxes . Also, Richard Dreyfuss proposes a positive alternative plan to get out of this pension dilemma: Getting out of the Pension Dilemma.

PA EITC
The PA Education Improvement Tax Credits are a way to fund alternatives to government schools. Dollars Follows Scholars and PA School Choice. One size does not fit all and government schools may not always be best venue for your child. School Competition and Parental Choice are keys not only to better quality.