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Pa. treasurer McCord, Keystone Research Center to talk pension plan

By , - Last modified: February 25, 2013 at 3:06 PM

In the first in a series of pension primers from the Keystone Research Center, state Treasurer Rob McCord and center Executive Director Stephen Herzenberg will discuss the governor's pension reform proposal on Tuesday.

A big piece of Gov. Tom Corbett’s plan calls for a move to defined-contribution plans for new state employees. That would actually increase costs for the state, school districts and, ultimately, taxpayers, according to the liberal-leaning KRC.

The KRC will argue the transition to a 401(k)-style plan will do nothing to address the current pension debt, according to a news release. It will add to the problem over time, the center said.

The current unfunded liability of the two state-administered pension plans is more than $44 billion.

Democrats largely support maintaining the current defined-benefit system, which was modified in 2010 with Act 120.

That reform act helped address an anticipated spike in pension costs by “smoothing” the increases over a long period of time. That law also reduced benefits for new hires.


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Jason Scott

Jason Scott

Jason Scott covers state government, real estate and construction, media and marketing, and Dauphin County. Have a tip or question for him? Email him at jscott@cpbj.com. Follow him on Twitter, @JScottJournal. Circle Jason Scott on .

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