Oct 29, 2016 2 min read

Recently, the issue of teacher pensions has been a topic in the news and in Harrisburg. The Republicans have a long-range plan to not only eliminate pensions for new employees but also current employees and current pensioners. Much like peeling an onion, the Republicans would peel off different groups one at a time over a period of years to make it politically appealing to legislators who would have to face teachers in the coming elections. These steps would include: forcing all new hires into 401(k)s; forcing current employees into 401(k)s; and exempting legislators, judges, state police and state employees.

With the state and teachers no longer putting money into the underfunded pension fund, how will they close the funding gap when Republicans refuse to increase taxes to be put into the pension system? Cut the pensions of current retirees.

What most people don’t know is that the state can cut the pensions of current retirees even though the Pennsylvania Constitution holds that contracts are sacred. How will they get around this? By going to the federal courts. While states cannot declare bankruptcy, the U.S. Supreme Court has held that states can declare a financial emergency and then restructure contracts.

To current and retired teachers, the strategy to force new teachers into 401(k)s is the first step to eliminating pensions for all teachers.

William Murdock

Canonsburg