Josephs introduces bill to ban bonuses; committee to review bill Monday

HARRISBURG, Sept. 18 – State Rep. Babette Josephs, D-Phila., has introduced legislation that would prevent Commonwealth employees from receiving bonuses.

Josephs said her legislation is the byproduct of a cooperative effort with the Rendell administration, and that the governor supports her bill, which can't be said about other similar proposals.

"This legislation is the strongest bonus ban proposal out there," said Josephs, chairwoman of the House State Government Committee. "It is different from the others in several significant ways.

"Not only does it clearly define who is covered by the ban and what is considered a bonus -- including covering non-monetary types of compensation in the definition -- it eliminates the 'PHEAA loophole' by prohibiting incentive-based compensation and stops bonuses from being considered in pension calculations," she said.

"In essence, it includes everything that critics of the bonuses have cited as areas that needed to be addressed. It is a proposal that is well thought out and cognizant of real-world implications.

"As I have said previously, just because a proposal is labeled reform doesn't make it reform. My legislation is real reform that is absent the omissions and loopholes that marred a similar proposal passed in the Senate."

Anyone paid a bonus after the effective date of the legislation would be required to pay it back. And, anyone who authorizes a bonus would be committing a third-degree misdemeanor.

The bill still allows for compensation received as the result of severance payments or settlement agreements; raises or cost-of-living adjustments; overtime, shift-differential, hazard or extra-duty pay; payment of unused vacation or other unused leave time; and the result of an arbitration award or litigation.

The bill also would require contracts, collective bargaining agreements and compensation plans to be open records.

"This legislation will build on the reforms already achieved in this legislative session, including the state's revamped Right to Know law," Josephs said.