Facing nearly $1 billion in new pension costs in the next two years, Pennsylvania appears to be inching toward reforming retirement benefits for state employees and public school teachers.
Monday, Budget Secretary Charles Zogby offered a preview of how the Corbett administration plans to deal with Pennsylvania’s $40 billion unfunded pension debt and rising annual costs. Part of the plan would target future benefits of current employees while keeping previously earned benefits and benefits for retirees in place, Zogby said during an appearance at the Pennsylvania Press Club luncheon.
“We’re not looking to take back what anyone has already earned,” Zogby said. “But for teachers and school employees, there may well be proposed changes to your pension benefits going forward.”