Bill calls for hybrid public pension system in Pa.

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.

(Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

WKBN 27 First News provides commenting to allow for constructive discussion on the stories we cover. In order to comment here, you acknowledge you have read and agreed to our Terms of Service. Commenters who violate these terms, including use of vulgar language or racial slurs, will be banned. No links will be permitted. Please be respectful of the opinions of others. If you see an inappropriate comment, please flag it for our moderators to review.

Leave a Reply

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

You are commenting using your 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