HARRISBURG, Pa. (AP) — Gov. Tom Corbett laid out a strategy Tuesday for reining in pension costs for Pennsylvania state and school employees that would reduce future benefits for current workers and require new hires to participate in a defined-contribution plan.
In his annual budget speech, the Republican told lawmakers that resolving problems that have saddled the two major pension funds with a combined $41 billion unfunded liability would be "the single most important thing we do for decades to come."
"The entire system of state pensions has become a mountain of debt, and the avalanche could bury our economic growth, swallow up benefits for our elderly, education for our children, and transportation for our economy," Corbett said.
But speedy approval appeared unlikely, with legislators from both parties questioning the constitutionality of a central part of the governor's plan and unions vowing to fight in court if it is approved.
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