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 This material may not be published, broadcast, rewritten or redistributed.)

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