Southwest Allegheny News

Rep. Valerie Gaydos, representing Allegheny County, voted against a legislative proposal that would increase the state's pension fund liability by $1.8 billion. The bill, House Bill 1416, aims to enhance retirement benefits for state employees and teachers who retired before July 1, 2001. While the bill passed in the state House, Gaydos voiced concerns about its financial implications.

Gaydos acknowledged the need to support retired teachers and state employees but highlighted the importance of finding a sustainable funding source. She warned that approving the legislation could lead to higher property taxes and exacerbate the existing $80 billion unfunded liability of both the Public School Employees’ Retirement System (PSERS) and State Employee Retirement System (SERS).

She expressed openness to supporting similar legislation in the future if it includes a stable funding mechanism without resorting to risky investments or tax increases on homeowners. Gaydos also mentioned agreeing with another House member's suggestion for a prepaid payment proposal as a more responsible approach.

“Although I am fully committed to supporting our deserving retired teachers and state employees, fiscal responsibility must guide our decisions,” said Gaydos. “We must ensure any enhancement in retirement benefits is backed by a stable, transparent funding source, not at the expense of escalating property taxes or increasing the state’s already substantial pension debt.”