Pension shift cut MT costs
TO THE EDITORS:
I read with interest the newspaper's report of the comments of Pennsylvania Treasurer Rob McCord on Gov. Tom Corbett's proposal to move new government employees from the state's current defined benefit pension program into a defined-contribution system. Mr. McCord argues that such a change will actually be more expensive to taxpayers. That has not been our experience in Manheim Township.
In April 2011, we changed our non-uniform retirement plan for new employees to a defined-contribution plan. Just two years later, in 2013, the township's required payments into the plan (Minimum Municipal Obligation) has gone down 1.9 percent. There is no reason to anticipate that the state's plan would not enjoy the same result.
I hope the Senate Finance Committee is willing to embrace this simple but critically important change in the state's unsustainable retirement system.
J. Michael Flanagan
Manheim Twp. Commissioner