News

Corbett backs hybrid pension system

Written by The Associated Press | May 28, 2014 12:10 PM
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(Harrisburg) -- Governor Corbett is backing legislation to replace Pennsylvania's public pension system with a less costly hybrid system.

A spokesman says Corbett was pleased by the Public Employee Retirement Commission's vote to accept analyses of the proposal by actuaries representing the state's two largest public-employee employment systems, Corbett and the commission.

Corbett, whose attempts at pension reform last year failed to garner a legislative majority, has worked with the bill's sponsors behind the scenes for months.

The complex plan would apply to newly hired state and school employees starting next year. It would combine the traditional defined-benefit plan with a 401(k)-style defined contribution plan. Current employees would not be affected.

Actuaries estimate the changes would save billions over 30 years, while shifting the risk from taxpayers to the employees.

An earlier story is below:

A review panel is advancing legislation to replace Pennsylvania's public pension system with a less costly hybrid system.

The Public Employee Retirement Commission voted unanimously today to accept analyses of the proposal by several actuaries representing the state's two largest public-employee employment systems, the governor's office and the commission.

The complex plan would apply to newly hired state and school employees starting next year. It would combine the traditional defined-benefit plan with a 401(k)-style defined contribution plan. Current employees would not be affected.

The changes would not affect the 2014-15 state budget, though the actuaries estimate it would save billions over 30 years.

Governor Corbett's office has been studying the hybrid concept.

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Comments: 1

  • navyseadog img 2014-05-29 05:00

    Mr. Corbett I hope you are able to pass this plan before the election! It may help the GOP.

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