December 17, 2013 The Honorable Tom Corbett, Governor 225 Main Capitol Building Harrisburg, PA 17101 Re:

Protecting Public Pensions for Pennsylvania Employees Dear Governor Corbett: As you are keenly aware, the subject of pension reform has been at the forefront of political debate for many years, particularly within the last two legislative sessions. And while we can all agree that the unfunded liability of our states public-pension systems is a serious problem that needs to be addressed, what is often lost in the conversation about public-pension reform are the faces behind the proposed cuts, including their concomitant economic and social repercussions. The current litany of policy recommendations that have been proposed by members of our General Assembly does not bode well for taxpayers, particularly as it relates to our nurses, teachers, and firefighters. Rather than undertaking the important task of protecting pension security during a period of economic instability within our Commonwealth, it seems as if your administration subscribes to legislative initiatives that would effectively increase the probability of retirement insecurity and would cause poverty rates to spike among Pennsylvanians. To further underscore our position, according to a 2012 report issued by the National Institute on Retirement Security (NIRS), poverty rates among older households lacking pension income were approximately six times greater than those receiving pension benefits. As such, any efforts that would either directly or indirectly result in a reduction or elimination of pension income would increase the number of older Americans classified as poor or near poor in Pennsylvania.

Older households with lifetime pension incomes are far less likely to experience food, shelter, and health care hardship, as well as tend to be less reliant upon public assistance. Therefore, the corollary of your proposed hybrid pension plans, which seek to slash the pension benefits of Pennsylvanias public employees, would result in more employees falling into poverty and relying upon public assistance programs, such as Medicaid and the Supplemental Nutrition Assistance Program (SNAP) two programs of which conservatives purport are bloated and expanded beyond the scope of sustainability. And while the aforementioned method of reform would obviously have an adverse effect upon elderly households in a general sense, it would be even more pronounced among ethnic-minority families, who many studies have shown, have lower incomes and savings than the average U.S. family. Further emphasizing this point is the fact that the median African-American family aged 70 and older has a net worth of $36,900, which is significantly lower than the net worth of the median U.S. household. Therefore, retired African-Americans are more apt than their counterparts to rely heavily upon income from pension plans and earnings than other retirees. Lastly, for the many Pennsylvanians who have dutifully served our Commonwealth for 20, 30, and in some cases 40 years, they should be afforded the peace of mind of knowing that their employer will uphold their contractual promise to provide them with the retirement benefits that they have both earned and deserve. The principle of fairness needs to be the cornerstone of any initiative proposing to reform public-pensions. Pennsylvanias public employees have more than demonstrated their willingness to embrace fairness and compromise, as evidenced by their numerous and substantive benefit concessions pursuant to Act 120 of 2010. Now is the time to acknowledge and reward their collective spirit of compromise, not dismiss it and make attempts to exploit it. In closing, while it is likely that there will never be a perfect solution to this critically important issue, we as public officials are expected to put forth the most practical and optimum proposal before our citizenry. Pennsylvanians demand and deserve nothing less. Moving forward, please know that our membership is willing to lend its assistance in any way practicable concerning the development of a plan to both equitably and constitutionally address the subject of public-pension reform in Pennsylvania. Should you wish to discuss this matter at further length with me, please feel free to contact my office at (717) 772-6955. Thank you for your consideration of this correspondence. Sincerely, Hon. Vanessa Lowery Brown, Chairwoman Pennsylvania Legislative Black Caucus State Representative, 190th Legislative District Hon. LeAnna Washington, Vice-Chair Pennsylvania Legislative Black Caucus State Senator, Senate District 4

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Hon. J.P. Miranda, Treasurer Pennsylvania Legislative Black Caucus State Representative, 197th Legislative District

Hon. Stephen Kinsey Pennsylvania Legislative Black Caucus State Representative, 201st Legislative District

Hon. Vincent Hughes Pennsylvania Legislative Black Caucus State Senator, Senate District 7

Hon. Anthony H. Williams Pennsylvania Legislative Black Caucus State Senator, Senate District 8

Hon. Shirley Kitchen Pennsylvania Legislative Black Caucus State Senator, Senate District 3

Hon. Jake Wheatley, Jr. Pennsylvania Legislative Black Caucus State Representative, 19th Legislative District

Hon. Edward Gainey Pennsylvania Legislative Black Caucus State Representative, 24th Legislative District

Hon. Thaddeus Kirkland Pennsylvania Legislative Black Caucus State Representative, 159th Legislative District

Hon. James Clay Pennsylvania Legislative Black Caucus State Representative, 179th Legislative District

Hon. Jordan Harris Pennsylvania Legislative Black Caucus State Representative, 186th Legislative District

Hon. Ronald G. Waters Pennsylvania Legislative Black Caucus State Representative, 191st Legislative District

Hon. Michelle Brownlee Pennsylvania Legislative Black Caucus State Representative, 195th Legislative District

Hon. Rosita Youngblood Pennsylvania Legislative Black Caucus State Representative, 198th Legislative District

Hon. Cherelle Parker Pennsylvania Legislative Black Caucus State Representative, 200th Legislative District

Hon. Dwight Evans Pennsylvania Legislative Black Caucus State Representative, 203rd Legislative District

Hon. James R. Roebuck, Jr. Pennsylvania Legislative Black Caucus State Representative, 188th Legislative District

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Hon. Margo Davidson Pennsylvania Legislative Black Caucus State Representative, 164th Legislative District Hon. Angel Cruz Pennsylvania Legislative Black Caucus State Representative, 180th Legislative District Hon. Patty Kim Pennsylvania Legislative Black Caucus State Representative, 103rd Legislative District

Hon. W. Curtis Thomas Pennsylvania Legislative Black Caucus State Representative, 181st Legislative District Hon. Louise Williams Bishop Pennsylvania Legislative Black Caucus State Representative, 192nd Legislative District

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