• Fact: Fifteen years ago Governor Ridge signed into law Act 9 with overwhelming support  from the legislature.
  • Fact: The legislation did not provide a revenue mechanism to fund increased benefits.
  • Fact: Act 9 is not going to be repealed, rescinded or revoked based on legal precedents established by the Courts in 1934, 1960 and 1984.
  • Fact: We have a $60 billion revenue hole that needs to be filled.
  • Fact: The PEW Foundation found that Pennsylvania is 49th in funding its public employee pensions.

The solution to the pension crisis is not more borrowing.

The solution to the pension crisis is not artificial collars.

And we are not going to solve the pension crisis by creating another commission composed of the same people who created the problem.

We can not afford any more pension gimmicks.

We are not going to solve the crisis by pretending it does not exist.

The solution to the problem is to eliminate the unfunded liabilities of SERS and PSERS over 20 years   with level dollar funding.

This is the standard established by the 2014 Blue Ribbon Panel on Public Pension Funding commissioned by the Society of Actuaries.

The financial solution will be painful and require shared sacrifice. In order to eliminate the unfunded liabilities, state and school district pension contributions will increase from $4.1 billion in the current fiscal year to $6.6 billion starting in Fiscal Year 2016.

If you voted to increase benefits without a commensurate revenue stream – and if you stand to gain from that legislation – then you can support and vote for a solution.

It’s time for all legislators – from the back benchers to leadership – as well the Governor – to buckle up their chin straps, put on their shoulder pads and announce a special session to deal with the pension boondoggle.

Waging pension peace is harder than waging pension war, but inaction has the same effect as placing a noose around the neck of our children’s future.

We will need to make spending cuts.

We will need to create a dedicated and protected  revenue stream.

The pension Doomsday Clock is inching toward midnight.

To do nothing is to knowingly blow up our children’s future.

Today we are unveiling a clock that announces the cost  to liberate hostage taxpayers.

 

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