Daley backs retirement bill
State Rep. Peter J. Daley (D-California) said he wanted to help the state’s public schools pull through tight budget times by allowing teachers at the top end of the pay scale to retire early. “Pennsylvania’s facing some major economic crises, not only in the state but also at local school districts, especially school districts in our region existing in an economically depressed climate,” he said.
When the Legislature returns to session in mid-January, Daley plans to introduce a “30-and-out” bill that would allow eligible teachers and state employees with at least 30 years’ employment behind them to opt for full retirement before the usual 35 years.
The bill would open these windows of opportunity in the 2003-2004 and 2004-2005 years.
Daley predicted 15 percent of the teachers in southwestern Pennsylvania could be eligible.
“If you do the math, it makes economic sense. Teachers at the highest step (of the pay scale) would be out of the immediacy of a school district’s funding and go into the retirement system. I believe, according to the actuarial system that I have seen, that (the retirement system) can handle 30-and-out,” he said.
A teacher can retire under normal conditions with full benefits and no penalties after 35 years’ service at any age, age 62 with any amount of service or age 60 with at least 30 years’ service.
He said the retirements also could clear the way for new hires from among Pennsylvania residents who may otherwise leave the state for employment.
Daley introduced a similar measure during the 2001-2002 legislative session and said he got bipartisan support, with 65 co-sponsors for the bill.
He said he believed it failed because the session came during the midst of a gubernatorial election.
He said he is hopeful that Governor-elect Ed Rendell will be more receptive.
Daley wrote in a letter to his colleagues, “I have no doubt that we will all join with the new administration in working overtime on the twin problems of property tax reform and basic education finance. I do not presume, however, that we will solve this riddle within the first few months in time for the next budget year. In the interim, we need to find ways to help our school districts stretch their available resources, and we need to give the new governor the same ability in terms of holding down costs in state government.”