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New study profiles state's public pension debt

Written by The Associated Press | Nov 26, 2012 3:28 PM

(Harrisburg) — A new report by the Corbett administration is warning of higher taxes, lower business growth and steeper borrowing costs because of the state's public-sector pension plans.

money budget

Today, the state Budget office released a study with updated cost figures to fully fund pension plans for state workers and public school employees.

The report says the two plans together have an unfunded liability of $41 billion.

The state paid nearly $1.1 billion into the State Employees Retirement System and Public School Employees Retirement System during the fiscal year that ended in June. That figure is projected to pass $2.2 billion next year and reach $5.1 billion by 2019.

The report says higher pension costs threaten the state budget and will claim a greater share of local school spending.

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Comments: 1

  • jhn.osborn img 2012-11-27 11:39

    Pennsylvania will always have a problem with the high cost of legislation because there are too many legislators.. The number should be cut in half. California has half as many. New Hampshire legislators get payed per day in session. If there was a way to have equal no. of democrats and republicans, that would probably make it easier to cut the numbers down.

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