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Governor Corbett Thanks PASBO for Support of Pension Reform

Press Release

Location: Harrisburg, PA

Governor Tom Corbett today thanked the Pennsylvania Association of
School Business Officials (PASBO) for recently announcing its support of the
administration's proposal to restructure future pension benefits for public school

"PASBO recognizes the urgency to take swift action to avert further economic harm
to our schools, taxpayers and the state's economy," Corbett said. "Without
substantive changes to future pension benefits of current and prospective
employees, Pennsylvania taxpayers will continue to bear the burden of ever increasing pension costs."

In a press release issued earlier this week, PASBO announced that it voted to
support a significant change in state pension laws to reduce the spiraling costs to
school districts and other school entities. According to PASBO, school pension costs
will continue to increase dramatically resulting in more program and personnel cuts
in future budgets as well as draining reserves at unsustainable rates.

Without reform, pension costs will consume about 60 percent of all new revenues in
the 2013-14 fiscal year. That translates to more than $500 million that could be
spent on core programs and services.

Corbett noted that the pension reform plan includes no changes to benefits for
retirees and no changes to benefits accrued by current employees through the
effective date of the plan.

Under the proposal, public school entities would realize savings of more than $1
billion over five years, nearly $140 million in 2013-14 alone.

"It's critical for the General Assembly to enact pension reform to address the state's
pension systems in order to protect taxpayers, now and well into the future,"
Corbett said.

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