Pension Crisis

PA Risks Credit Downgrade Over Pension Crisis

The state already took a hit last year

|


HARRISBURG — When looking at Pennsylvania's pension crisis, some of the problems are obvious — like $47 billion that is owed to current workers and retirees.

Other costs are less well defined, but should be a part of the discussion as state lawmakers decide whether changes to the state's two pension systems will be included in this year's state budget process.

One of those hidden cost is the threat of another downgrade to the state's credit rating, which took a hit in 2012 largely because of pension debt.

Budget Secretary Charles Zogby said this week that another rating downgrade would be coming at some point if the state Legislature did not address the pension crisis.