Pennsylvania 2025-2026 Regular Session

Pennsylvania House Bill HB418

Introduced
1/30/25  

Caption

Providing for County Employees' Defined Contribution Plan.

Impact

If enacted, HB 418 would significantly alter how retirement benefits are managed for county employees in Pennsylvania. By transitioning to a defined contribution plan, the financial responsibility for retirement savings would shift much more onto individual employees, along with any associated risks regarding investment performance. This could lead to variability in retirement benefits, depending on individual contribution patterns and investment success over time. However, having personalized investment accounts could also empower employees to make informed decisions about their retirement funds and potentially increase overall individual savings rates.

Summary

House Bill 418 aims to establish a County Employees' Defined Contribution Plan in Pennsylvania, amending the existing County Pension Law. This bill would create a structured system where county employees can contribute to their retirement through payroll deductions into individual investment accounts. The administration of this plan would be managed by a board responsible for overseeing the contributions, investments, and disbursements of retirement benefits to employees and their beneficiaries. This shift towards a defined contribution model may provide employees greater control over their retirement savings compared to traditional pension plans.

Sentiment

The sentiment surrounding HB 418 seems supportive overall, particularly from the proponents of individual investment plans. Supporters argue that the bill enhances employee autonomy and could lead to better retirement outcomes due to personal investment choices. Conversely, there are concerns among some stakeholders regarding the potential downsides of a defined contribution framework, particularly the risks that come from market fluctuations and the uncertainties surrounding investment returns that may affect the retirement security of employees.

Contention

Notable points of contention include the implications of shifting from a guaranteed pension model to one heavily reliant on individual contributions and market performance. Critics may express concerns over the adequacy of retirement benefits in the long run, especially if investments do not perform well. Furthermore, there may be discussions on whether the responsibility placed on employees could disproportionately affect those who are less financially literate or do not have the means to contribute adequately to their retirement savings.

Companion Bills

No companion bills found.

Previously Filed As

PA HB2507

Providing for County Employees' Defined Contribution Plan.

PA SB1056

In Treasury Department, further providing for investment of moneys; establishing the Keystone Saves Program, the Keystone Saves Program Fund, the Keystone Saves Administrative Fund and the Keystone Saves Program Advisory Board; providing for powers and duties of the Treasury Department, for investment and fiduciary responsibilities and for program implementation; and providing for the electric vehicle road user charge effective date.

PA SB1244

In contributions by employers and employees, further providing for contributions by employees.

PA HB577

Establishing the Keystone Saves Program, the Keystone Saves Program Fund, the Keystone Saves Administrative Fund and the Keystone Saves Program Advisory Board; and providing for powers and duties of the Treasury Department, for investment and fiduciary responsibilities and for program implementation.

PA SB728

Establishing the Keystone Saves Program, the Keystone Saves Program Fund, the Keystone Saves Program Administrative Fund and the Keystone Saves Program Advisory Board; and providing for powers and duties of the Treasury Department and the Department of Labor and Industry, for investment and fiduciary responsibilities and for program implementation.

PA HB756

In preliminary provisions, further providing for definitions; in contributions by employers and employees, further providing for relief from charges; and, in compensation, further providing for ineligibility for compensation.

PA HB1958

Providing for employer child care contribution tax credit.

PA SB654

In sales and use tax, further providing for

PA HB1379

In membership, contributions and benefits, providing for supplemental annuity commencing 2025; in municipal pensions, providing for 2025 special ad hoc municipal police and firefighter postretirement adjustment; and, in benefits, providing for supplemental annuity commencing 2025.

PA SB1143

In personal income tax, further providing for classes of income; and providing for 529 savings account employer contribution tax credit.

Similar Bills

PA HB754

Further providing for supplemental benefits.

PA HB2507

Providing for County Employees' Defined Contribution Plan.

NJ S3417

Establishes loan program in DCRP.

SD HB1029

Update provisions of the South Dakota Retirement System.

MI SB0262

Retirement: state employees; annuity option; provide for. Amends secs. 55, 58, 63, 63a & 69 of 1943 PA 240 (MCL 38.55 et seq.).

MI SB0497

Retirement: state employees; annuity option; provide for. Amends secs. 55, 58, 63, 63a & 69 of 1943 PA 240 (MCL 38.55 et seq.).

TX HB2996

Relating to the creation of a state-administered retirement plan; authorizing administrative penalties.

TX SB1537

Relating to the creation of a state-administered retirement plan; authorizing administrative penalties.