Finance Committee OKs Statewide Police Pension Plan

Panel also endorses home heating relief proposal

The Senate Finance Committee today (February 11) approved legislation that would provide for a centrally-administered, statewide retirement system for all local government police employees, according to Committee Chairman Senator Pat Browne (R-16).

Senate Bill 596, introduced by Senator Jane Orie (R-40), would allow municipal police officers to enroll in the current State Employees Retirement System, which, under the bill, would be renamed as the "Government Employees Retirement System."

"This is a move that I believe is long overdue and could save the Commonwealth tens of millions of dollars annually, while improving efficiency. Consolidation would cut administrative costs and allow us to get a better return on our investment," Senator Orie said. "In these tight fiscal times, that is a commonsense move we can no longer ignore. It would also increase the stability of our police pension systems – by spreading out the risk and ensuring that good financial decisions are made."

In a related matter, the Committee also approved Senate Bill 1093, also introduced by Senator Orie, which would close an unintentional gap in the survivor benefit coverage provided in Act 30 of 2006 for a small number of surviving spouses of police officers who retired before the effective date of Act 30 of 2006, and died after the act's effective date.

"These bills (SB 1012 and 1093) make significant changes that ultimately would provide real benefits to retired police officers and their families, while lifting an administrative burden from Pennsylvania's municipalities," Senator Browne said. "When it comes to pension funds, there truly is strength in numbers and I believe that the men and women who uphold the safety of our communities and their families deserve to be secure in their retirement."

The Committee also approved Senate Bill 1248, a bill introduced by Senator James Rhoades (R-29), that would amend the law governing Pennsylvania's Property Tax and Rent Rebate Program in order to provide home heating fuel rebates to senior citizens and others who are eligible to receive property and rent assistance.

These home heating fuel rebates would be paid out of funds that have not been expended on property tax and rent rebates in 2007. As of December 31, 2007, the Department of Revenue reported that $84 million appropriated for the Property Tax and Rent Rebate Program had not been expended. Senate Bill 1248 proposes to direct this $84 million to home heating fuel rebates.

Other bills approved by the Committee include:

Senate Bill 1169, introduced by Senator Andrew Dinniman (D-19), which would provide an earned income tax credit of up to $400 for a volunteer firefighter or a volunteer emergency medical services provider.

Senate Bill 1012, introduced by Senator Bob Regola (R-39), which would prohibit municipalities from levying an amusement tax on fixed site amusement and water parks.

Contact:

Stacey Connors
(717) 787-1349