SOUND OFF

LAST WEEK'S QUESTION

Should Pennsylvania phase out defined-benefit pension plans for state workers and shift to a defined-contribution plan, such as the 401(k)? Why or why not?

NO

21 percent

YES

79 percent

HOW YOU SAID IT:

YES: "The taxpayers can no longer pay a guaranteed rate of return at retirement. Every large company has been converting their pension plans to 401(k) plans for years. It is time for government to do the same."

-Jeff Bruening,

York County

YES: "This would limit the state's future liability and reduce ourstate income tax if it was handled correctly. We should limit what is contributed and offer only matching funds, requiring state workers to contribute to their own retirement saving. This is the type of plan that most businesses offer."

- Charles Auman,

York County

YES: "State government needs to acknowledge what private industry has recognized for some time. The trend in private industry for some time has been to move away from defined-benefit plans, primarily driven by economic necessity and sound financial management. Just as private industry cannot continue to carry large, unfunded, open-ended pension liabilities in an era of economic volatility, intense international competition and eroding profit margins, state government will find it increasingly difficult to fund defined-contribution pension liabilities in an era of declining government spending, voter resistance to tax increases, and essential government services consuming ever greater shares of the state budget."

-Russell G. Kulp,

Cumberland County

YES: "Individuals, including government employees, should be given the opportunity to be responsible for their own retirement-plan options, which would include a contribution from the employer and personal contributions.The risk to the taxpayers under a defined-benefit plan is becoming an undue burden. The future unfunded liability will become a significant drag on the ability of the public sector to provide services in the future. Under a pay-as-you-go plan (defined contribution), the public sector knows each year what its cost is, and the promised unknown future costs are eliminated."

-Dave Gerber,

York County

YES: "Yes, as that is what most, if not all, the private sector does if there is any at all. Definitely, if it lessens my tax burden."

-Gary Toy,

Cumberland County

YES: "I think that the contribution system is a fair representation of the average of the working classes of taxpayers in PA from the private sector. State employees should not benefit any better than the average taxpayer on a retirement system. Who is funding their system? Taxpayers."

-Wayne Waggoner,

Adams County

NO: "This was tried and shown to only end up costing more. 401(k) programs don't provide as stable of a retirement future. Instead of finding ways to dismantle a secure retirement for public employees, we need to find a way to get this benefit back into the hands of more private employees."

-Gene Robison,

York County

NO: "While I would normally say yes to this question, the biggest problem I foresee is that most state workers have not saved enough, on their own, to expect that they can easily phase in to this new discipline."

-Jim Williams,

Lancaster County

THIS WEEK'S QUESTION

Should the state encourage mergers of small, rural municipalities? Why or why not?

To respond, visit www.centralpennbusiness.com. The poll question is on the bottom right-hand corner.

What's your opinion?

We encourage readers to write letters. Please keep them to fewer than 400 words. Please sign your name and include a telephone number. List your borough, township or city. We reserve the right to edit letters.

ADDRESS: Editor, Central Penn Business Journal, 101 N. Second St., Second Floor, Harrisburg, PA 17101

FAX: 909-0538 PHONE: 236-4300

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