HARRISBURG – Rep. John Schlegel (R-Lebanon) is sponsoring legislation that would provide Pennsylvania’s county governments the option to offer their employees the same types of pension plans as those available to state and municipal employees. Currently, counties are permitted to offer their employees only a defined benefit pension plan. House Bill 2507 would provide counties with the option to offer a defined contribution plan instead. “Unlike defined benefit plans that can place a significant financial burden on counties due to guaranteed payouts based on predetermined formulas, defined contribution plans are similar to the 401k-style plans offered in the private sector that provide employees with individual retirement accounts funded with contributions by both the employer and employee,” said Schlegel. Under Schlegel’s bill, county employees already enrolled in defined benefit plans would retain their plans and benefits without any changes. The existence of the defined contribution plan would not affect their existing entitlements.
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