House to Vote This Week on Pension Reform

Pennsylvania House members were to have met today to discuss a Senate-passed bill, under which the state would take control of municipal pensions that have less than 50% of their obligations to retirees and current workers. However, House leaders put off a vote until at least Thursday to consider an amendment put forth by the Pittsburgh Mayor Luke Ravenstahl who is asking for a 2 year exemption from state takeover while the city bolsters its pension plan which is currently funded at just 28% of its obligations. The Ravenstahl Administration is looking at leasing city-owned parking garages and put that revenue into the pension fund.
State Representative Joe Preston of Pittsburgh is a member of the House Rules Committee which will consider the amendment. Preston says Ravenstahl has come up with some verifiable numbers to support his request for the 2 year reprieve.
The delay has angered Philadelphia Mayor Michael Nutter because a provision in the legislation would allow his city to raise its sales tax temporarily to 8% to cover a deficit and strengthen Philadelphia's pension fund. Nutter has said that unless the measure is passed by the end of the week, there could be drastic cuts and layoffs.
But State Representative Dan Frankel of Pittsburgh says the House will not go along with the Senate-amended version of the bill. He says there could be passage by the middle of the month. Frankel says he thinks lawmakers have an agreement to give the city of Pittsburgh more time to meet the 50% level of pension funding, which is the cut off for state takeover.

In Harrisburg today, Fraternal Order of Police officials rallied and called for the House to reject the overall bill claiming it would wrongfully strip away local control of police pension plans.
Representative Frankel says they are actively negotiating a compromise that will at least in part meet the different constituencies' needs, but they won't be able to address all of the unions' concerns.
"There's got to be some management in expectations of future benefits...maybe a freezing at current levels, or being able to offer new employees an alternative from a traditional defined benefit to a defined contribution plan. There needs to be municipal pension reform to save the benefits of current workers and retirees."
Frankel said some changes will be "uncomfortable."