Pennsylvania House Republicans have come up with their own proposals to change state worker pensions, weeks after Senate legislation to do the same.
The House plans, however, have a little something extra in them.
Top Senate Republicans were quick to acknowledge their proposal to enroll future state and school district employees in a 401(k)-style retirement plan wouldn’t address the huge burden of current employees.
So the state still would be on the hook for billions of dollars to pay for their defined-benefit plans.
But Rep. Warren Kampf, R-Chester, says that under his proposals, current employees would be encouraged to *switch* to the new defined-contribution plans.
“And receive not 4 percent from the employer, but 7 percent from the employer, and they, the employee, would be required to contribute 4 percent,” Kampf said.
New hires, though, would only receive a 4 percent contribution from their state and school district employers.
The state’s pension funds face a deficit of about $40 billion.
Gov. Tom Corbett has singled out pension reform as a top priority of his administration once the budget’s finished.