Pa. senators eye 401K-style public pension plan
HARRISBURG, Pa. (AP) — Gov. Tom Corbett’s plan to slash $12 billion from the future pension benefits of current public employees appears dead in the Republican-controlled state Senate.
The Senate Finance Committee voted unanimously today to strip Corbett’s proposals from pension legislation, except for provisions that would shift most future state and public school employees into a 401K-style retirement plan.
It would maintain the traditional pension plan for state police and prison guards. The bill would switch current lawmakers, judges and executive branch officials if they’re re-elected.
The bill passed narrowly, 6-5, and its future is uncertain.
Republican supporters say such a change will bring more certainly to the state’s future costs. Democrats opposed it and cited calculations by consultants to the state’s two major retirement systems that it’ll cost $42.4 billion.