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In Light of Governor’s Budget Proposal, Tobash Continues to Work to Address Pennsylvania’s Public Pension Crisis
HARRISBURG – Earlier this week, State Rep. Mike Tobash (R-Schuylkill-Berks) attended Gov. Tom Corbett’s budget address which he presented before a joint session of the General Assembly. Corbett’s budget plan for fiscal year 2014-15 would spend $29.4 billion, a 3.3 percent increase over the current year’s budget.

One of the final issues Corbett addressed in his speech was pension reform. While no specific pension reform plan was presented as part of this year’s budget, the governor’s proposed budget numbers are based on the assumption that the General Assembly passes a pension reform measure in the coming months. Corbett’s budget proposal includes anticipated savings to both the Commonwealth and school districts.

In light of those assumptions, Tobash is working to build support for his pension reform plan, which would only affect new employees entering the state system, and is designed to not change benefits for existing participants.

“There are many reasons why our state’s pension crisis must be addressed now, and I am glad that Governor Corbett mentioned it in his budget address on Tuesday,” said Tobash. “This is an issue that is not going to fix itself. I have been working on a hybrid public pension plan for months that is designed to reduce taxpayer risk and result in a major shift to a 401K style plan for new members.”

Tobash’s pension plan would address three critical areas: paying for the underfunding that exists in the current system; shifting a great deal of the risk of future pension obligations away from taxpayers; and addressing current budgetary concerns of the Commonwealth and local taxing districts.

“In our current fiscal year, the total employer contribution is approximately $3.4 billion,” said Tobash. “Under our current law, that figure will move upward of $6.6 billion by 2018-19. An increase of more than $3 billion is equivalent to about 60,000 jobs.

“The problem here is clear, but the solution is not simple,” said Tobash. “Agreeing on a plan that will create a sustainable and realistic pension policy for Pennsylvania is one of the most critical things we must accomplish as lawmakers. The future of our state depends on our ability to get this done.”

For more information on Tobash’s public pension proposal, or any other state-related issue, contact Tobash’s district office in Schuylkill Haven by calling 570-385-8235. Information related to current state issues can also be found on and

Representative Mike Tobash
125th District
Pennsylvania House of Representatives

Media Contact: Krisinda Corbin
717.705.2032 /
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