News

Governor Corbett's plan would cut PA pensions by $12 billion

Written by The Associated Press | Feb 26, 2013 6:04 PM
Tom-Corbett-11.jpg

Photo by witf

(Harrisburg) -- State and school employees in Pennsylvania stand to lose nearly $12 billion worth of pension benefits over the next 30 years if Governor Corbett's pension reform plan is approved.

The administration has released a printed summary of the financial implications of Corbett's proposal.

The $12 billion in savings would come exclusively from the Republican governor's plan to reduce future benefits for current employees. It's unclear whether there is enough legislative support and, even if it's approved, unions have vowed a court challenge.

The summary says Corbett's plan to move new hires into a 401(k)-style plan would save more than $5 billion through 2043.

But those savings would be partly offset by proposed limits on how fast taxpayers' share of pension costs may grow in the next few years.

Published in News

Tagged under , , , , , ,

back to top

Post a comment

Give Now

Estate Planning

Support for WITF is provided by:

Become a WITF sponsor today »

Smart Talk

National Edward R. Murrow Awards

DuPont Columbia Awards

Support Local Journalism

Latest News from NPR

Support for WITF is provided by:

Become a WITF sponsor today »