News

Left-leaning think tank criticizes Corbett pension overhaul plan

Written by The Associated Press | Jun 2, 2014 1:47 PM
stacked-money.jpg

(Harrisburg) -- A labor union-affiliated think tank is attacking Governor Corbett's latest plan for reining in Pennsylvania's public employee pension costs.

Stephen Herzenberg, director of the Keystone Research Center, says the proposal sponsored by state Representative Mike Tobash and backed by the governor would force draconian cuts in pension benefits for future school and state employees.

Herzenberg says the ``hybrid'' plan, which would join a limited traditional pension with a 401(k)-style defined contribution plan, also would save only about $3 billion in today's dollars.

Actuaries for the Pennsylvania Employee Retirement Commission, which cleared the bill for legislative action last week, say the changes would shift considerable risk onto newly hired employees and save between $12 billion and $14 billion over 30 years.

Published in News

Tagged under ,

back to top

Post a comment

Support for witf is provided by:

Become a witf sponsor today »

witf's Public Insight Network

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 »