Gov. Tom Corbett is calling for bold steps to address Pennsylvania's budget crisis
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Tuesday, February 5
By Eric Boehm | PA Independent HARRISBURG – Proposed pension reforms in Pennsylvania save about $175 million next year at a cost of billions in the long run. During his budget address on Tuesday, Gov. Tom Corbett called on lawmakers to pass his multi-level pension reform proposal with this year’s state budget. The plan would move new employees to a 401(k)-style pension system, would reduce future benefits for current employees and would reduce the state’s payments into the state’s two pension systems for the foreseeable future. Read reaction to Gov. Corbett's budget proposal: The first two parts of his plan are intended to save costs in the long run by cutting a small part of the state’s unfunded liability, while the third part would free …
Paul Roscoe
10:05 am on Friday, February 8, 2013
Beginning around 1996, the private sector moved away from defined pension plans to Individual Retirement Accounts. However the public sector in Pennsylvania still continued with defined pension plans that were overly generous and unrealistic. Now we have a mess with public pension obligations eating away more of the Pennsylvania budget each year while hurting programs designed to help … more ›