Rep. John Schlegel, a Republican from Lebanon, has introduced House Bill 2507 to the Pennsylvania legislature. The proposed legislation aims to provide county governments with the option to offer their employees defined contribution pension plans, similar to those available to state and municipal workers. Currently, counties are restricted to offering only defined benefit pension plans.
Schlegel explained the advantages of defined contribution plans: “Unlike defined benefit plans that can place a significant financial burden on counties due to guaranteed payouts based on predetermined formulas, defined contribution plans are similar to the 401k-style plans offered in the private sector that provide employees with individual retirement accounts funded with contributions by both the employer and employee.”
He further elaborated on the benefits for employees: “They also provide employees with flexibility and portability of their retirement savings, which can be particularly attractive to younger workers and those who want greater control over their retirement investments. By allowing employees to choose between the two types of plans, they are empowered to make the decision that best suits them and their financial and career goals.”
The bill ensures that county employees already enrolled in existing defined benefit plans would continue without any changes or loss of benefits. Schlegel emphasized that his proposal seeks a balance between fiscal responsibility and workforce attraction: “This legislation would modernize our county pension systems by balancing fiscal responsibility with our need to attract and retain a talented workforce,” he said.
Contact information for further inquiries was provided as Donna Pinkham at 717-260-6452 or via email at dpinkham@pahousegop.com.
