September 19, 2012 (PLANSPONSOR.com) – Pennsylvania Auditor General Jack Wagner proposed that the state’s 2,600 municipal pension plans be consolidated into a statewide system.
Wagner said that consolidation would yield higher investment return rates for municipal employees, reduce administrative expenses and help reduce the need for increased contributions from taxpayers.
“Pennsylvania has too many small and underfunded municipal pension plans that could cost taxpayers millions of dollars to maintain,” Wagner said. “Consolidation is the best way to preserve benefits for retirees and future retirees while protecting taxpayers from higher tax bills they can’t afford.”
Wagner said the General Assembly should consider consolidating local government pension plans into a statewide system for different classes of employees—police, firefighter and non-uniformed. An alternative solution would be to maintain the existing system of individual pension plans but consolidate their administration into one entity, such as the Pennsylvania Municipal Retirement System or the State Employees’ Retirement System.