As Pennsylvania confronts an unfunded pension liability of more than $60 billion, pension costs for school districts have grown dramatically every year.
The legislature is moving toward voting on a new public employee pension system. But that measure “doesn’t do anything to reduce that $60 billion liability short term,” according to Keystone Crossroads education reporter Kevin McCorry. “And neither does it do anything to reduce the amount of money school districts will need to spend on pensions any time soon.”
It would, however, change the system for new hires.
“New hires, starting in 2018, would get a hybrid retirement plan,” McCorry said.
Gov. Tom Wolf has previously claimed he would sign this sort of bill, but has yet to commit on this specific legislation.
McCorry offered further details in a chat with NewsWorks Tonight host Dave Heller. Listen to their conversation below.