The Pennsylvania Association of School Business Officials today announced it supports making a "significant change" in state pension laws.
PASBO, which is made up of school employees who handle finances and operations, said it supports the restructuring of future benefits for current employees, which Gov. Tom Corbett advocated in his budget address in February.
"Without addressing both current and future costs of mandated pension expenditures for school employees, we will have to devote $2,500 per student by FY 2017-18 just for retirement costs," PASBO executive director Jay Himes, PASBO executive director, said in a press release.
PASBO did, however, disagree with the governor's proposal to use the federal Social Security cap for pension purposes, saying it is an "artificial cap" and would cause experienced leaders to leave education or not seek administrative positions.
The governor proposed capping pensionable income to the Social Security wage base, which is $113,700.
The organization also is against the portion of the plan that would reduce short-term costs but result in additional long-term costs.
"We urge the administration to remain true to its pledge of not kicking the can down down the road," PASBO president John Brenchley, director of management services for Intermediate Unit 17, said in the press release.
The organization also favors eliminating mandatory pensions to part-time school employees of less than 1,000 annual hours.education - mobilehome - breaking - electionspa - businessnews
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