Wolf plan seeks to end spiking school pension costs early

HARRISBURG, Pa. (AP) – Gov. Tom Wolf’s administration says it would make the state government’s first full pension obligation payments in more than a decade and its plan would end spiking pension obligation payments for school districts a few years early.

Wolf’s budget secretary, Randy Albright, told the Senate Appropriations Committee, however, that he does not expect rating agencies would reverse recent downgrades that have made Pennsylvania one of the nation’s least creditworthy states.

Wolf’s plan involves borrowing $3 billion and using the investment gains to help reduce annual payments to the Public School Employees’ Retirement System. The Wolf administration also wants the state’s two big public employee retirement systems to cut investment management fees.

The GOP-controlled Legislature would need to approve the bond, and Republicans say they worry it’s a money-losing maneuver.

 

Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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