State Representative Mike Tobash (R-Schuylkill/Berks) says his hybrid plan to address Pennsylvania’s pension crisis will help stop the bleeding from within the current system and create long term savings and shift the risk from the taxpayer.
“You are not going to see $100,000 defined benefit retirement plans at the expense of taxpayers,” said Tobash.
Tobash says benefits of current employees will not change and the plan would be in place for new employees entering the state system. They will be enrolled in a combination of a 401(k)-type and traditional pension plan.
State and public school employees will be a part of the same plan. Workers who do not receive Social Security benefits will receive an additional defined contribution plan option.
Stephen Herzenberg is an economist and executive director of the Keystone Research Center. He does not support the Tobash amendment.
“What the Tobash proposal does is force new, mostly young employees to pay for the past mistakes of their employers,” said Herzenberg, “What it doesn’t do is save the Commonwealth substantial money, now or in the future.”