Pennsylvania's pension crisis has worsened despite several years of surging stock markets, prompting the state's Institute of Certified Public Accountants to suggest that new state employees, teachers and lawmakers be enrolled in a defined contribution plan.
It was just one of a number of suggested pension reforms in a grim outlook from the group that forecast taxpayer obligations to some plans would nearly double in the next five years.
The CPAs said that at the state level, taxpayer contributions to pension plans will increase to $3.3 billion, or nearly 10 percent of the budget, by 2020. That's compared to the $1.7 billion, or 6 percent of the budget, made in contributions this year.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
