State senators eye 401K-style public pension plan

Written by The Associated Press | Jun 19, 2013 4:02 AM

(Harrisburg) -- Governor Corbett's plan to slash $12 billion from future public employee pension benefits appears dead in the Republican-controlled state Senate.

Senate Majority Leader Dominic Pileggi said the Finance Committee will meet Wednesday to amend Corbett's pension bill.

It plans to advance a portion of the bill that would shift future hires into a 401K-style plan, cutting off new entrants into the traditional pension plan.

He says that's as far as pension legislation will go in the Senate as the Legislature wraps up for summer.

Proponents say such a change will bring more certainly to the state's future costs.

Senate Democrats are likely to oppose it.

They cite calculations performed by consultants to the state's two major retirement systems that show that such a shift will cost taxpayers $42.4 billion.

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