State Rep. Scott Boyd told about 100 teachers on Thursday that he supports changes in the way future education retirements are funded.
With tax hikes to fund pensions on the horizon, Boyd told teachers from Lampeter-Strasburg, Conestoga Valley and Penn Manor that "there is bad blood out there."
An increase in payments needed to meet Public School Employees Retirement System needs is coming in the 2012-13 school year, Boyd said in a talk at Lampeter-Strasburg High School.
The spike in that year alone, Boyd said, could translate to tax hikes on a $100,000 home in the following amounts: L-S, $209.81; Penn Manor, $187.81; and CV, $158.58. The total increase in taxes over several years could range from $500 to $1,000 per homeowner.
A way to prevent the same situation from happening in the future, Boyd said, is to change from the current defined benefit plan to a defined contribution plan, like a 401k used in the private sector.
Boyd stressed that the change would not effect current teachers. Also, changes would be made "very, very slowly."
Boyd responded to written questions.
In response to one inquiry, Boyd said he felt talented people would still be attracted to teaching with a defined contribution plan.
One teacher asked why a tax increase of about 50 cents per day "was such a big deal." The representative replied that neighbors may view the change differently.
Another person asked what can be done so teachers are not vilified in this situation.
Boyd told teachers the situation was not their fault.
"Say you understand the depth of the problem," Boyd said, "and that there are options."