Pennsylvania Adopts Law Allowing Early Severance

An important Bill permitting local government employers to offer voluntary early severance plans was signed into law by Governor Tom Ridge on June 22. The Bill, now known as Act 37, was passed earlier by the Pennsylvania House and Senate on unanimous votes.

The legislation was supported by EPC-Employers Preferred Corporation as a means of placing local governments on equal footing with public colleges and school districts. These bodies have long enjoyed early severance plans as powerful cost containment and staff restructuring tools. Dr. Miles Williams, EPC’s Atlantic Region Manager, worked with legislators throughout the year-long process.

Prime sponsor of the Bill was Representative Lynn Herman, Majority Chair of the House Local Government Committee. Representative Terry Van Horne, Minority Chair, was the secondary sponsor. Recently retired State Senator J. Doyle Corman, EPC’s Senior Consultant for Local Government Affairs in Pennsylvania, assisted Williams in achieving passage.