SUNBURY – The pension crisis in the state continues to grow and must be addressed now. So says state representative Fred Keller (R-85th, Kreamer) who was a guest on WKOK Sunrise Monday, “We went for so many years where we didn’t make the full pension payments, and having not made the full pension payments, now we are making the payments for public school employees and for state employees into the pension system.”
Kelle
r said, “It’s a benefit they earned and they are entitled to that benefit. Simply going forward, what we need to do is keep that promise to the people who earned the money and come up with a system that allows future employees to retire and make it affordable for the taxpayer.”
Keller said he wants to switch to a 401K style pension plan for government workers, “The employee contributes if they choose, where the employer makes their contribution. That would be mandated. Then earnings over time would give the person retirement.”
In order to bring the Pennsylvania pension crisis under control, Keller said tax increases may be needed, “You need to look for a payment schedule and the money to do that, and that may require some revenue, which is taxes”
Keller said some important steps need to take place now, “You have to stop adding people into the system that, quite frankly, is flawed. Benefits were increased for employees and they were retroactive for current employees in 2001. It changed the multiplier from 2 to 2 1/2, which was about another 20 percent on your money. Then, the following year, there were cost of living adjustments given for retired employees. Contributions weren’t made and the stock market didn’t do well. Contributions weren’t made because politicians made decisions to spend money on other things.”
You can hear more from Fred Keller from WKOK Sunrise online at www.wkok.com. (Ali Stevens)
