Municipal Pension Reform

The League supports reform of the future pension benefits provided to police officers and firefighters. The current mandated defined benefit plans are not sustainable for a number of reasons including an early retirement age, the impact of Act 111 agreements and awards and the placement of investment risk solely on the employer.

Auditor General DePasquale’s 2015 Municipal Pension Task Force Report to Governor Wolf provides for strategies to address unfunded pension plans.  The report recommends several provisions, including capping overtime at 10% of salary; basing final average salary on the last 60 months of service; requiring municipal disclosure of pension costs; prohibiting the use of pension state aid for administrative purposes; and other strategies to increase transparency and control costs. Please view the 2015 Municipal Pension Task Force Report here.