HARRISBURG, Pa. (AP) — HARRISBURG — Gov. Tom Corbett’s pension-overhaul plan is finally being turned into legislation, three months after he unveiled it and eight weeks before lawmakers are expected to adjourn for the summer recess.
The Republican governor joined sponsors of the House and Senate bills at a news conference Tuesday.
The legislative reception to the plan has been cool, but Corbett and the’ sponsors say drastic action is needed to counter an unfunded liability in the state’s two major pension funds that’s expected to reach $65 billion by 2018. If that happens, they said it would force deep cuts in state and school programs or tax increases.
The far-reaching proposal would save $12 billion over 30 years by reducing the future pension benefits of more than 370,000 state and school employees.