Pension reform frustrates Governor
HARRISBURG – Governor Tom Corbett wanted pension reform to be part of this year’s budget, but a plan is still not in place, leaving the governor frustrated. Corbett was a guest on WKOK’s Wednesday On The Mark program to discuss the budget and pension reform. Corbett said he wanted serious reform, but no one was willing to take those steps.
Corbett says there are a number of pension plans out there for consideration, “One that has the most support right now is the one that has an amendment on it that would allow some changes and make it into a hybrid system. That is extremely important to me as a starting point.”
He continued, “New employees coming in would be able to have a defined benefit program which is traditional up until $50,000. And then it would switch over to a defined contribution program for anything earned above $50,000.”
Corbett said a lot of people in the state employee ranks are below the $50,000 level, so they wouldn’t really see anything different coming in. But, there are a lot of employees and teachers that get above that $50,000 level and it would only apply to new employees and they would have a hybrid plan.
You can hear more from Corbett on the pension crisis, the budget and more from WKOK’s On The Mark program here. (Ali Stevens)
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