Update: Pa. Senate committee advances pension reform legislation

HARRISBURG, Pa. (AP) – Gov. Tom Wolf’s office says the Democrat supports legislation advancing in the Pennsylvania state Senate to overhaul retirement benefits for future state government and public school employees.

Wolf’s office said Sunday night he supports the bill’s goals of continuing to pay down the pension debt on the current schedule, reduce pension fund investment fees and shift investment risk away from taxpayers.

A Senate vote is expected Monday.

The bill passed a first committee vote Sunday night on a near-party line basis, just hours after the legislation became public.

The bill would shrink the traditional pension benefit for future hires in Pennsylvania’s two big debt-saddled pension systems, and add a 401(k)-style benefit.

Actuaries say it wouldn’t reduce near-term pension obligations for the state and school districts, and long-term savings are minimal.

Future state troopers and corrections officers are exempt, as are current lawmakers and public employees. Retirees are unaffected.

 

 

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s