HARRISBURG, Pa., June 25, 2013 /PRNewswire-USNewswire/ -- Pennsylvania AFL-CIO President Rick Bloomingdale said today's report by the Public Employee Retirement Commission, (PERC), confirms that the costs of switching future employees into defined contribution plans will increase underfunding of both pension systems and provides less retirement security for public sector workers.
"I urge legislators from both parties to pay attention to this report and to act accordingly. This report clearly indicates that a defined contribution plan does not address the unfunded liability and adds billions in additional pension debt that would end up having to be paid by the commonwealth and school districts," Bloomingdale said.
"Even the PERC report acknowledges, as we have said all along, that Act 120 is a realistic and affordable solution to the unfunded liability," Bloomingdale said.
"This report once and for all should end the myths and the claims and hopefully will bring about solutions that are based upon the facts and the numbers not politics or ideologies. The solution is to allow enough time for the pension reforms enacted in Act 120 of 2010 to correct the unfunded liability. School teachers, nurses, emergency responders, as well as all public service workers made significant concessions in order to protect and preserve their pensions. In each and every paycheck since the date of their hire they have made their contributions to their pensions. It's time to keep the promises made to these workers by protecting their retirement security now and in the future," Bloomingdale said.
SOURCE Pennsylvania AFL-CIO