Pension

Bill To Rein In Pennsylvania Pension Benefits On Fast Track

Jun 5, 2017
Matt Rourke / AP

Most rookie teachers and newly minted Pennsylvania government employees would see a smaller retirement benefit in the coming decades through the state's two big debt-plagued pension systems, under legislation that passed the Senate on Monday and has the backing of Democratic Gov. Tom Wolf.

The Republican-controlled Senate's 40-9 vote could be followed by swift House action this week to send the just-unveiled bill to Wolf's desk.

Katie Meyer / WITF

State senators gathered in the Capitol on Sunday evening to move a bill that's been dogging the legislature for the last four years, in various forms.

It would rework the structure of the state's two heavily indebted public pension systems, a change the bill's supporters say mitigates risk to taxpayers.

However, the proposal does little to reduce the state's massive pension debt.

Like several previous GOP pension proposals, it would shift the state's retirement plan to a three-tiered 401-k-style system--effectively reducing benefits for new hires.

Gov. Tom Wolf / Flickr

One of Harrisburg’s perennial headaches is heading back to the legislative spotlight as Senate Republican leaders work to push a familiar pension bill through the chamber.

Last session, GOP lawmakers made a late-in-the-game attempt to pass a pension overhaul that would have offered state employees three retirement options—two so-called “hybrid” plans, and a 401k-style plan.

At the time, Governor Tom Wolf indicated he’d sign it. But the plan didn’t get full votes because House and Senate Democrats refused to support it, saying they hadn’t gotten enough input.

Katie Meyer / WITF

In one of the state Capitol’s busy lobbies, there’s a clock that tracks unfunded pension liabilities. All day and night, that clock ticks upwards, adding billions of dollars to Pennsylvania’s debts every year.

The clock’s overseen by a small, dedicated group of pension overhaul advocates and on Tuesday, they dragged it up to the Capitol’s main rotunda to make a renewed call to lawmakers: find a way to halt the clock’s rising numbers, once and for all.