State addresses pension crisis

HARRISBURG — A bail out bill to address state pension fund losses passed the House last week and is awaiting action by the Senate Finance CommitteeState Rep. John Siptroth, , this week voted for bipartisan legislation that passed the House of Representatives to address Pennsylvania’s pension crisis. “Without this fix, Pennsylvania taxpayers would face billions of dollars in increased taxes.” said John Siptroth D-Monroe/Pike. The state’s retirement systems, the Public School Employees Retirement System (PSERS )and the State Employees Retirement System, are underfunded due to a combination of investment downturns and the global economic crisis of 2008, as well as increased benefits enacted in 2001 and a cost-of-living adjustment for retired employees. Under the plan, the increased costs would be capped by a set percentage that increases each year for four years up to 4.5 percent until the losses are recovered.