Current Employee Benefits Likely To Be Targeted In Pa. Pension Reform Proposal
By Tony Romeo
HARRISBURG, Pa. (CBS) - Pennsylvania’s budget secretary says Governor Corbett is likely to propose changes to future pension benefits for current workers when he rolls out his plan to reduce the spiking cost of pensions for school and state employees.
During a press club appearance in Harrisburg, Budget Secretary Charles Zogby said Governor Corbett is first looking first at reducing costs for future state workers, teachers and other school employees but says it is likely he will have to go further.
“We’re then going to have to look at current employees and look at perhaps at a change in benefits going forward.”
But spokesman Erik Arneson says the state Senate Republican majority leader believes there is a problem.
“Case law is relatively clear that you cannot affect the benefits of current employees even prospectively.”
The budget secretary, meanwhile, says that since school employees represent the biggest chunk of rising state pension costs. Education funding in the budget will be tied to the success of efforts the achieve pension reform.