House votes for school, state workers' hybrid pension plan

Written by The Associated Press | Jun 13, 2016 7:30 PM

(Harrisburg) _ A bipartisan vote in the Pennsylvania House is giving fresh momentum to a proposal to change the state's two large public-sector pension plans by forcing new state and public school hires into a combination of a traditional pension and a 401(k)-type benefit.

The House voted 150 to 41 on Monday for an amendment to have employees earn traditional pension benefits on only their first $50,000 of pay, a cap that would increase 3 percent annually.

The bill wouldn't affect benefits for those already working in state government and public schools.
The hybrid plan awaits a final House vote before being considered in the Senate.

Democratic Gov. Tom Wolf's spokesman says he supports adding the 401(k)-style benefit but is waiting to see the details of whatever might pass the Legislature.

Published in Harrisburg

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