 Okay, thank you everybody. Thank you everybody for this is if you have a notice. This is a historic occasion I am really proud to be here today with this great assemblage of leaders To sign real and meaningful pension reform That is fair to workers and it's fair to the taxpayers of Pennsylvania. Give yourselves a round of applause This is a real. This is a significant achievement for everyone who has worked on this issue And I couldn't be prouder to be here with Republicans and Democrats members of the Senate members of the House To take this final step in this long how many years process to get real meaningful pension reform Before I start I just want to make special Especially acknowledge a few people who have done a lot especially senator Corman Senator Corman and you'll hear from him in a minute, but but we have worked tire He has worked tirelessly, and I think we've worked together In an effort to get this across the finish line, and I want to thank you for your hard work Naturally, I also want to thank senator Skarnati president pro tem of the Senate senator pat brown chairman of the appropriations committee We're there you are. Okay But the Senate appropriations committee senator Costa leader Costa Speaker Terzai representative Reed Representative Dermotty and so many others who are back here because today is yet another example of how we can work across party lines Here in Harrisburg we can get important things done in a way that I think a lot of other places cannot Just go over some of the history together. We legalized medical marijuana. We continue to battle the opioid epidemic in Pennsylvania We've passed liquor reform We've invested in our schools in a fair and equitable way And the common thread that runs through all these things and all these successes is not just that we have changed policy But that we've done this we've worked hard But we've done this in a way that that really does the best for the citizens of Pennsylvania all of us Wherever we come from whoever we serve whichever party we attach ourselves to we've all worked here And this is another example of that for the people of Pennsylvania And now we can add to that list of things I just mentioned one really big issue and that's meaningful pension reform Senate bill one's may Senate bill one makes significant changes to Pennsylvania's retirement system While also protecting the benefits that our employees will earn over years of hard work It reduces Wall Street fees so that more money stays in the pockets of Pennsylvania's rather than on Wall Street manager's pockets It shifts unnecessary risk away from the taxpayer It introduces a new full defined contribution 401k style plan For our new employees an option for new employees just like the private sector and it could save depending on what happens Or how you value that risk shift could save over ten billion dollars for Pennsylvanians taxpayers over what we had in our Old system and what now exists in our unfunded liability And let's be clear This plan addresses our liability in the only real and responsible way possible by changing the structure of pension benefits The fact is we cannot accelerate the shrinking of our liability on the backs of our current employees and this bill Recognizes that in a real concrete way Even eliminating future pension benefits altogether would not change the reality that the only way to more significantly Reduce our current debt is to do what this general assembly and then governor Agreed to do back in 2010 and that is to pay our bills every year on time Simply put this bill is a win for Pennsylvania taxpayers It's also fair to Pennsylvania's workforce and I will be proud to sign it in just a few minutes But first I'd like to turn this over again to the person I think gets a huge credit for making this possible and that's majority leader senator Jake Corman Thank you governor as I was driving here today. I Said I feel sort of like a Cubs fan You know for a hundred years or whole identity was never winning the world series and and now day one one They don't really have an identity anymore and for years also. I've been talking about his pension reform So I'm not sure what I'm gonna talk about tomorrow, but I guess as a politician. I'll come up with something at some point Just a few thank yous first governor You know, I was critical last year when we didn't get this done I want to give the proper accolades to you. I know this has been a difficult issue Your chief of staff as I said on the floor Mike Brunel looked me in the eye here You know six months ago and said I promise you this is a priority for the governor And it was a priority and we would not be here without you so governor. Thank you so much for all your hard work Leader Reed everyone's behind me. That's my side of me Speaker Terzai and the whole House Republicans Dave and I have met twice now and now tuna at the champsports bar and grill for lunch To talk about big issues one was the 16 2016 budget stay on mate and just a few months ago was about his pension reform in both times We came up with a plan that brought us to completion. So I'm not sure what you're doing tomorrow But maybe we should head there But you know Dave said he was absolutely committed to getting this done and he certainly as a man of his word and made it happen So some of the organizations private organizations like the Pennsylvania State Chamber Allegheny Conference Philadelphia Chamber of Commerce Pew Charitable Trust Commonwealth Foundation and all the other groups that weighed in It's that they identified this as the number one problem Pennsylvania had to be resolved and was unwavering and their commitment to resolving it in a True fashion and so I thank them for all our support Anyone who tries to draw up pieces of legislation like this knows that it takes tremendous staff work to do that I want to thank all the staff of both my leaders office and appropriations staff for tremendous work Particularly want to point out my legislative director Scott Sikorsky who as I said on the floor was six feet tall had a full head of hair And none of it was gray when this issue started But no one can match Scott's work ethic and so we wouldn't be here without all that great work And I want mostly want to represent comment about the 34 Senate Republican members of our caucus The three years ago you elected me leader and we identified this is by far the number one issue facing Pennsylvania and anytime you're dealing with Retirement issues is sensitive difficult issues to to address Not only were you courageous in your votes? You were demanding that we take those votes Because we had to address the issue and there was no way to get around it So we had to take it on full steam you are the true heroes of this legislation And I thank you all for being strong in your support of this legislation Finally, just let me mention this Since this let final compromise was unveiled Our friends and before the state of giving up somewhat of a I would say at least a tepid response I guess that's the by nature the media's job to be critical of what goes on in Harrisburg And I know this legislation doesn't address everything. We still have challenges in front of us particularly dealing with the unfunded liability But as the governor mentioned, this isn't Harrisburg or this isn't DC. This is Harrisburg You know, we could all stand in our ideological purity go to our corners introduce legislation and never get anything done But we could come together as a general assembly and try to fix the problems Pennsylvania Understand most of these members here in this general assembly You know, they didn't create this problem. They inherited it And they weren't here in 2001. They weren't here in 2003 They weren't certainly weren't responsible for the for the Great Recession in 2008 But despite all that they were unwavering in their support to get this done and demanding that we get this done And so today is a historic day that yes, we still have challenges in front of us We still have a child. You know, we've gone through a lot of difficult challenges in the past But because of this legislation we remove 60% of the risk off the backs of the taxpayers Which what we're saying to the people of Pennsylvania is this we have challenges in front of us but because this legislation This will never ever happen again in Pennsylvania and in the mortal words of Joe Biden and I'll paraphrase This is a big deal. Thank you very much Let me introduce good friend speaker Mike Turzi Governor senator Corman It's great to follow you. I know we have many other leaders to follow me Thank you so much for inviting me. I'm so excited about this date Jake Corman The Senate Majority Leader. Thank you for your leadership Dave Reed Right here. Thank you for your leadership these two individuals amongst others Really worked so diligently to make sure all of All the members of the legislature Along with the governor's office were on board to get this done. I Saw the work firsthand That our majority leader Dave Reed was doing day in and day out and I knew what Jake Corman had been doing Throughout the Commonwealth I'm working with Dave and to be able to put the coalition together to deliver this meaningful piece of legislation. I applaud that great work from a legislative perspective and governor we are honored that you are here to sign this legislation with us today and with Republicans and Democrats voting in favor of this This legislation I want to just say this about the bill and I do have to do some other Thank you said I think are crucial at it at a historic moment like this But to my colleagues in the General Assembly For all of you who have been steadfast on the Senate side in the House side and getting us meaningful pension reform Congratulations and thank you It marks a historic point in Pennsylvania government We are moving to a defined contribution plan for new hires in the public sector State employees and school employees The private sector has been in the defined conscious Abusion space for some time now But from our understanding it only four states have done anything to move to define contribution space for new hires and For many of them. It's just state employees Pennsylvania is ahead of the curve and is Making sure to save the system for the existing employees and retirees We are saving them. We are protecting future taxpayers And here's the thing folks. These are still competitive benefits with respect to other states or with respect to the private sector for new hires All of that done in Senate bill one. I Also want you to know this because I sometimes hear about oh, this isn't addressing the unfunded liability Folks this group of folks have been addressing the unfunded liability for quite some time Let me just tell you the back in 2007 and 2008 the contribution to the system was Around five hundred and seventy million in this upcoming budget Just since seven eight we are now reaching 4.3 Billion dollars in contributions to sirs and peasers and we haven't missed the payment Senator Skarnani and I have been out front along with our leaders and our colleagues We haven't missed a single payment and it's gone up from 500 some million to four point three billion dollars Folks were taken on the unfunded liability. We're we're near the actually required contribution And this product this is a product of work spanning several legislative sessions I have to point out some individuals because I think that they're so crucial on the house side Representative tobash Representative camp former representative Chris Ross day in and day out working to get to a solution Yes, they wanted to define contribution for all new hires But this bill is so significant in its shift if to be able to get the coalition 143 votes in the house under Dave's leadership Dave Reed's leadership just outstanding work just outstanding work In addition, I just want to say this To know that the governor Corbett and lieutenant governor Colley put in so much effort and they worked hard on this And I'm so glad that governor governor wolf is picking up where they left off We didn't get it over to the goal line at that time We grew our majorities and we also got folks like my good friend representative Harry reach on board to put together a coalition This is this is just people deserve Thanks for the great work that they have done so many of these new members ran on this issue and said we got to get it done And and they were behind us. They supported us. They were they were so supportive of Of Leader Korman and leader Reed and and energetic about about getting that across the goal line I have to applaud each and every one of them. It's an honor to be with them Folks the main thing that I know that is this I see my neighbors I know how hard they're working and they are supportive of a great school system. They are they're great Supporters of a good state system delivering service But they would be paying taxes and they would say like I'm in a defined contribution plan When are you guys getting there and I got to tell you I think that's the most important accomplishment That Senate bill one achieves it lets the the taxpayers know the hard-working citizens know folks We're moving into the direction that the private sector is for some period of time and we got it done to this great group Thank you so much and Dave I got to tell you Dave my hats off to you and Jake I think your leadership has just been outstanding and I am so appreciative. Thank you My good friend from Allegheny County senator Jay Costa Thank you very much mr. Speaker and ladies and gentlemen, thank you for the opportunity to be here I want to thank all my colleagues who are participating in today's this afternoon's Very pretty significant event that's taking place here in a few moments when the governor signs Senate bill one Let me say this I echo the comments of my colleagues with respect to the work that has been done leadership most importantly has been demonstrated Certainly, I think as folks know past five six years there's been significant discussion and debate among the Senate members Particularly about pension reform and how we're going to address that and we've had some pretty heated discussions but at the end of the day My good friend and colleague senator John Blake who really led the effort for Senate Democrats in this conversation Really laid out what our principles were our guiding principles and we think that at this point in time This legislation addresses that Making certain that we don't exacerbate the unfunded liability Making certain that we have a reasonable and responsible level of retirement security for our workers And to make certain that we don't impair the contracts that we have with our current employees Which is some of the three or four principles that we talked about this legislation meets that as my good friend and colleague senator Judy Schwank always says to me and others we cannot let the perfect be the enemy of the good This is a good piece of legislation It's going to help us address needs to go forward so we can begin to manage our pension situation across this commonwealth And allow us to focus on some other measures that we can now take off the back burner and move to the front burner to be Part of our conversation as we go forward But I want to certainly say thank you to Governor Wolf for the work that he's done making certain and demonstrating his leading leadership To want to work with this issue But also my colleagues in the Senate senator scarnade and certainly senator Corman and senator brown Who's been so much time working on this legislation and working closely with our folks in our caucus senator break as I mentioned and senator Hughes our appropriations person as well as our staff folks and certainly working with leader Reid and speaker Terzai and certainly My good friend from Allegheny County Representative Dermotty This has been a work in progress for a great long period of time And I'm very very happy to be able to stand here today to support this as we go forward But now that is my pleasure to introduce representative Frank Dermotty democratic leader in a state house thank you, Jay and As I the remarks I made it said in the remarks I made on the house floor this pension bill is probably not the bill that the house Democrats would have written if we had written it ourselves. I Also mentioned that I don't believe the Republicans would have written this bill if they written it by themselves However, we chose collaboration instead of confrontation And we came up with a measured piece of legislation that I think does the job it would not have Taken place without the cooperation of all four caucuses and the governor and governor I do want to say thank you for your work on this without your engagement and your encouragement We wouldn't be where we are today, but this measured legislation. I believe Protects retirement security for future workers It keeps our promise to current employees. It keeps our promise those retired employees would depend on their pensions today And we did that Working together now as you've heard passing this pension bill is a big thing. It is a big deal But it's not the only big thing we need to accomplish this June So I'm hoping passing this pension bill leads us to do another big thing that is passing a responsible budget and Senator Corman, maybe we should all get together a champs bar and grill. Maybe we could put that together there But it's important. It's very important and incredibly important that we do so So with that it is my honor to show you what a bipartisan effort this is that I have the honor of introducing this the chairman of the Senate Appropriations Committee senator Pat Brown Thank You Frank. I do wanted to thank governor wolf and Leadership and all four caucuses all the members of the assembly for their leadership over the past week on behalf of the citizens taxpayers workers of the Commonwealth I also wanted to Join Jake Corman and others and thanking the staff Who had put so much time and energy on this over a long period of time? People in the trenches looking at endless options endless fiscal notes and this actuarial notes Stacey Connors in my office has been in the trenches on this floor for years now and without their Diligent assistance we wouldn't be where we're at so thank all the staff for their hard work No doubt being an accountant anytime you have accountants and economists and actuaries in the room on any issue It's going to be pretty boring But matter how dry it is that's only matched by how serious it is What has been the center of gravity for our conversation? No doubt has been our 70 billion dollars in debt and growing That is a significant number of relation to our assets However, it is important to note as the Speaker had mentioned is that we will service that debt to meet our obligations to our Participants and our retirees Right now pursuant to commonly accepted actuarial standards Obviously we can consider other means to do that but right now that's what we're doing What's as significant as the debt is? What it communicates what it has communicated to? thousands of enterprises have come before us on this path and Thousands that will come after us something. We've never had a solution for And that is the status quo Presents unsustainable risk for our collective mission and the mission of this Commonwealth on behalf of its workers Its taxpayers and its future generations the governor and members of this assembly and all the staff understand and Had supported this measure because it that is the primary overwhelming reason To advance pension reform. It's the primary overwhelming reason Why the private sector over the last 30 years has moved to a different platform to provide better balance in Retirement security on behalf of their workers and their taxpayers the adoption of Senate will Senate bill one Reflects what we can do collectively across this building across state government to address the most significant system systematic financial challenges of the Commonwealth experiences and I know it will set an example for future action to put the Commonwealth on A more sustainable path in the future. Thank you very much majority leader majority leader house David Reed Thank you very much senator, you know before I say a few words. I do want to thank a number of folks Who really helped get us to this point? To about to see pension reform after six long years signed in law, you know first I want to give the governor the credit he is due You know, he stood up at the end of last session and said I want to make pension reform a priority I want to separate it from the budget and I want to get a bill signed in a lot and to the governor's credit He has been a man of his word and we greatly appreciate his leadership over the last six months in helping us to get here at governor Thank you. I also want to thank The leadership in a Senate particularly senator Corman and senator Brown our leadership team led by Speaker Terzai I also want to thank two of our members who from a rank-and-file Perspective have worked very very hard on pension reform for a number of years representative Warren camp Representative Mike Tobash and also our state government committee chairman Darryl Medcalf who worked very hard to shepherd pension reform Through the state government committee and through the House floor just last week We couldn't have been here Getting this pension proposal moving forward had we not had cooperation amongst all four caucuses as several of the speakers had alluded to working with leader Costa and leader Dermany has been a pleasure throughout this process and There are a number of staff members and I want to mention three who I think really worked very hard to bring this deal to a close Within the last couple weeks I want to thank Mike Brinnell and the governor staff Scott Sikorsky in senator Corman staff and Todd Bryziak on my staff who spent I think too many evenings too many weekends and too many thoughts for the last six Months trying to bring this to a head. So those three individuals in particular deserve a round of applause You know, there are really two sides of pension reform one side is getting out from underneath the unfunded liabilities and In all honesty, there's only one way to do that. We pay our bill We pay the bill for commitments that were made decades ago that we Unfortunately are those who have to pay down those commitments today and as the speaker alluded to we've been paying down those commitments on schedule on time for the last six years and we're committed to Leading the charge to continue to do so until each and every dollar that unfunded liability is paid down The second side of pension reform is restructuring the deck Restructuring the system so that we make sure that we don't have this problem again in the future as leader Corman alluded to Most of the members who voted to change our pension system last week We're not part of the problem or we're not here when those problems were created years and decades ago The flip side of that is most of the members who voted to change our pension system last week Will not be here to reap the rewards of those changes decades from now Because pension reform is not about a short-term budgetary fix. It's about a restructuring of the system That ensures that next time our economy takes a hit from a national perspective. We don't create Tens of billions of dollars in debt within that system again Pension reform the signing of this bill today by the governor is about one thing and one thing alone It's about making sure that those who come after us are not faced with the same Difficult decisions that we've been faced with for the last couple years So again, I think this is a prime example of what public policy making is is it supposed to look like? all four caucuses Both parties and the governor coming together to do the right thing not just in the short term But in the long term so with that it is now my pleasure to turn the bill over to the governor to officially be signed in a law