HARRISBURG, Pa. (AP) — Gov. Tom Corbett's budget chief says any meaningful changes to Pennsylvania's public pension plans must include at least some reductions in future benefits for current workers.
Budget Secretary Charles Zogby made the comment Tuesday during a briefing on Corbett's wide-ranging pension reform plan. It would cut future benefits for current state and school employees, divert new hires into a 401(k)-style plan and slow the increase in taxpayers' contributions to the state's two major public retirement funds.
Zogby says savings from future benefits are crucial to the long-range success of the governor's proposals to rein in an unfunded liability that now stands at $41 billion. Critics say those proposals are on shaky legal ground and unlikely to withstand a court challenge.