State Rep. John Schlegel (R-101) is sponsoring legislation that would expand the pension plan offerings for Pennsylvania county government employees to mirror those currently available to state and municipal employees.
Schlegel is the “prime sponsor” of House Bill 2507, which is also sponsored by state Rep. Russ Diamond (R-102), state Rep. David Zimmerman (R-99), state Rep. Tom Jones (R-98), and state Rep. Mike Jones (R-93).
In addition to the defined benefit pension plan currently available to county government employees, the bill would give counties the option to offer their employees a defined contribution plan.
“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,” Schlegel said in a statement.
“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.”
Under House Bill 2507, county government employees who are already enrolled in the defined benefit plan would not be impacted by the existence of the defined contribution plan and would keep their plan and benefits as is.
New county government employees and those who are already enrolled in the defined benefit plan would be given the choice between the defined benefit plan and the defined contribution plan.
Schlegel said the bill “would modernize our county pension systems by balancing fiscal responsibility with our need to attract and retain a talented workforce.”
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