Rep. Glen Grell to introduce a hybrid pension fix Monday
Cumberland County Republican Rep. Glen Grell’s pending solution to Pennsylvania’s public-sector pension woes will be more of a middle-ground approach to plans proposed by the governor and where the General Assembly left the issue in June.
Grell is planning to introduce his proposal at a news conference Monday in Harrisburg.
He said the legislation, which is still being drafted, will look to place future state hires in a less-expensive plan with shared-risk provisions. Current legislation has focuses largely on moving hires to a 401(k)-style plan, beginning in 2015.
That would generate some savings for the state’s two retirement systems and help address the unfunded liability that currently stands at more than $47 billion, Grell said.
To avoid any constitutional challenges, which the Corbett plan created, Grell said he is planning to propose voluntary changes on the future benefits of current employees.
Grell also talked briefly about short-term relief on the employer contribution side.
“It will not lower the payment, but maybe taper the collars a little,” he said.
Grell said his proposal will not affect any current retirees and that it will make up for years of underfunding by the state.
Grell's news conference will start at 11 a.m. in the State Capitol Media Center. It will be streamed live at www.RepGrell.com.