HARRISBURG, Pa. (AP) – A review panel is advancing legislation to replace Pennsylvania’s public pension system with a less costly hybrid system.
The Public Employee Retirement Commission voted unanimously Wednesday to accept analyses of the proposal by several actuaries representing the state’s two largest public-employee employment systems, the governor’s office and the commission.
The complex plan would apply to newly hired state and school employees starting next year. It would combine the traditional defined-benefit plan with a 401(k)-style defined contribution plan. Current employees would not be affected.
The changes would not affect the 2014-15 state budget, though the actuaries estimate it would save billions over 30 years.
Gov. Tom Corbett’s office has been studying the hybrid concept.
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