Public Pension Reform
Government employees in Pennsylvania are enrolled in a myriad of defined-benefit pension plans.Defined-benefit plans are perpetually susceptible to political pressures and manipulations, such as cost-of-living adjustments and enhanced retirement annuities. The chickens are now coming home to roost, as taxpayers will soon face billions of dollars in higher state and local taxes to pay for the accumulated costs of these pension plans.
CAP champions placing all state, county and local government employees, as well as public school employees, into a unified, defined-contribution pension plan. Defined-contribution plans, such as a 401(k), make taxpayer costs more predictable and affordable, while offering a sufficient retirement nest egg for government workers.