Pension Issue Appears Dead For Now…

Pension issue appears dead for now, unless House, Senate reach agreement on compromise.

The state Senate Appropriations Committee on Thursday once again did not consider a bill that would set up a 401(k)-style retirement plan for most new state employees. The committee is scheduled to meet later today, but that bill is no longer on the committee’s voting agenda.

If the Senate does not send Senate Bill 922 to the House today, that effectively removes that particular pension change vehicle from play, at least with regard to getting something done before the General Assembly approves a state budget and recesses for the summer.

The state House is in a similar situation with regard to two House bills that would set up 401(k)-style plans for most state employees and school employees. Those bills – House Bill 1352 and House Bill 1353 – would already appear to be done, at least for now, since both are only on second consideration in the House, which doesn’t allow enough time for both the House and Senate to consider the bills before an expected recess of the General Assembly for the summer.

One option does still technically remain available, assuming Republicans in the Senate and House can reach an agreement about how to craft the pension changes and find enough support to actually pass the bill: Senate Bill 797.

The bill is a pension-related bill, although it has nothing currently in it to implement a 401(k)-style retirement plan. The bill was approved by the Senate earlier this month, and it has already had two days of consideration in the House. It is currently in the House Appropriations Committee.

There remain enough days – assuming the General Assembly recesses following passage of a state budget on Sunday – for SB797 to be amended, considered and approved by the House, and still offer the Senate a chance to concur with the House’s changes to the bill.

However, given the trepidation being voiced by lawmakers in both chambers regarding the uncertainty of the future impact of a switch to a 401(k)-type plan on the state employee and school employee pension plans, the SB797 scenario, while still in play during the next couple of days, appears rather unlikely.