By Peter Jackson, Bloomberg Businessweek
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.