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Plan Unveiled To Reform Public Pensions In Pennsylvania

June 5, 2014

A state lawmaker has unveiled a proposal to reform the public pension system in Pennsylvania.

The plan would place a cap on the amount of future retiree benefits and combine it with a 401(k)-style defined contribution plan.  State Representative Mike Tobash, who is spearheading the effort, tells Radio PA News the savings would ensure that public education has a future.

Tobash pointed to a study which says it would save the state eleven billion dollars over thirty years.  Wythe Keever, of the Pennsylvania State Education Association cited a Keystone Research Center study which shows savings of about four billion in today’s dollars.

Meanwhile, state Senate President Pro Tempore Joe Scarnati says the legislature should at least move the state’s elected officials out of the current defined pension plan.

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