PRINTER'S NO. 1893
No. 299 Session of 2005
INTRODUCED BY DALEY, CLYMER, JOSEPHS, BISHOP, HUTCHINSON,
HALUSKA, HICKERNELL, BLACKWELL, FABRIZIO, GABIG, SHAPIRO,
GINGRICH, METCALFE, WATSON, YOUNGBLOOD, VITALI, RAPP, SATHER,
REED, PRESTON, CASORIO, SHANER, PYLE, TRUE, BELFANTI, EACHUS,
MILLARD, ELLIS, GOODMAN, HENNESSEY, HERSHEY, GOOD, LESCOVITZ,
STERN, DALLY, HARHAI, REICHLEY, T. STEVENSON AND CAUSER,
MAY 9, 2005
REFERRED TO COMMITTEE ON FINANCE, MAY 9, 2005
A RESOLUTION
1 Directing the Legislative Budget and Finance Committee to
2 perform a study of early retirement proposals.
3 WHEREAS, House Bill No. 130, Printer's No. 631 (2005), and
4 House Bill No. 131, Printer's No. 632 (2005), propose retirement
5 enhancements for State employees and public school teachers
6 within the Commonwealth; and
7 WHEREAS, The percentage of employees of the Commonwealth and
8 its school districts who are eligible for retirement is
9 projected to increase substantially over the next two decades;
10 and
11 WHEREAS, The fiscal and personnel impacts of retirement
12 enhancements in the context of the continued aging of employees
13 of the Commonwealth and its school districts may be significant;
14 and
15 WHEREAS, No entity in recent memory has undertaken a
1 comprehensive study of the probable fiscal impact of such
2 enhancements on the overall operations of the Commonwealth and
3 its school districts, including an actuarial study of its impact
4 upon the State Employees' Retirement System and the Public
5 School Employees' Retirement System; and
6 WHEREAS, No comprehensive study has been performed describing
7 the benefits or disadvantages for the personnel needs of public
8 agencies and schools of such enhancements; therefore be it
9 RESOLVED, That the Legislative Budget and Finance Committee
10 perform a comprehensive fiscal, actuarial and policy analysis of
11 the various alternative proposals set forth by House Bill No.
12 130, Printer's No. 631 (2005), and House Bill No. 131, Printer's
13 No. 632 (2005), including such logical variations of those
14 proposals which may be suggested by the study, even though not
15 specifically named in each bill; and be it further
16 RESOLVED, That the analysis include the costs and assets
17 required to fund initiatives, now and over the next ten years;
18 the past impact of early retirement incentives on budgets and
19 work force needs; the actual value of past cost-of-living
20 increases for retirees; the value of early retirement programs
21 in providing employment for younger workers; the potential
22 impacts on the mix of critical skills and experience within
23 Commonwealth agencies and school districts and the various
24 alternatives to maintaining or ensuring adequate staffing in the
25 context of retirement enhancements; the impacts likely on the
26 General Fund of the Commonwealth and various types of school
27 districts according to size, aid ratio and other relevant
28 factors; and the health and welfare of retirees; and be it
29 further
30 RESOLVED, That the committee consult with the chairman and
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1 minority chairman of the State Government Committee of the House
2 of Representatives and with the prime sponsor of House Bills 130
3 and 131 in formulating the outline of its analysis; and be it
4 further
5 RESOLVED, That the committee be authorized to request
6 actuarial studies for this study on behalf of the House of
7 Representatives; and be it further
8 RESOLVED, That the committee avail itself of other studies
9 and resources already existing as may assist in completing this
10 study; and be it further
11 RESOLVED, That the report of the committee on this resolution
12 be delivered to the State Government Committee in a public forum
13 during the month of January 2006 and be disseminated thereafter
14 promptly to all members of the General Assembly and the Governor
15 for consideration.
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