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

Written by The Associated Press | Feb 26, 2013 6:04 PM

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(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.

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