The Math Doesn’t Work Anymore.
It’s a fact. 41% of Pennsylvanians live in a municipality that is experiencing fiscal distress.** The mounting costs associated with public safety employee pensions are the single biggest threat to fiscal stability, by far. Locked up by those pensions are your road repairs, new police and fire hires, more modern equipment and lower taxes. Ultimately, municipalities will have no choice but to pass this burden on to taxpayers. It’s unsustainable and unfair.
- Half of Pennsylvania’s municipal public safety pension plans are experiencing some level of pension distress.*
- 66 of Pennsylvania’s 67 counties have at least one municipality with a pension plan under a high level of financial stress.*
- 41% of Pennsylvanians live in a financially distressed municipality.**
- 573 Pennsylvania municipalities now administer pension plans that are “distressed” and underfunded by at least $6.7 billion.***
- Life expectancy has increased from age 60 in the 1930s, when some local municipal pension laws were written, to nearly age 80 in 2011. That’s 20 more years of pension payments.***
- * Public Employee Retirement Commission 2012 data
- ** Pennsylvania Economy League of Greater Pittsburgh, April 2012
- *** Department of the Auditor General (www.auditorgen.state.pa.us) Municipal Pension Special Report – Updated