Pension Reform: Back to the Senate

The State Senate is once again expected to take up pension reform legislation this week. After changing the Senate-altered original House legislation, the House did approve a new version and sent it back to the Senate for consideration. The House added an amendment that would give Pittsburgh a 2 year exemption from state takeover of its troubled pension fund. The city's pension system has only 28% of the money to cover its obligations for retirees and current employees. Mayor Luke Ravenstahl has proposed leasing city-owed parking garages and using the revenue to bolster its pension fund.
Republican State Representative Mike Turzai of Allegheny County (Bradford Woods)says he's not sure the city can do it.....
"While I agree with giving the city of Pittsburgh time to right its ship, I'm skeptical of their ability to do that. I do support the amendment that allows Pittsburgh time, but I think like many of the municipalities, we have to look at the history."
Turzai says even before the economic downturn, the city of Pittsburgh's pensions were only funded at 41.7%.
The Republican controlled Senate might object to another action by the House: stripping away many of the reforms the Senate added to the legislation previously including freezing current pension levels and changing the pension contribution rules for new hires. The House removed those provisions after objections by police and firefighter unions saying the changes would interfere with collective bargaining.

The legislation also allows Philadelphia to raise its sales tax to 8% for 5 years to eliminate a budget deficit and strengthen its pension fund. Philadelphia Mayor Michal Nutter has been saying if state lawmakers don't pass the measure soon, he'll have to lay off 3,000 workers.