November 16, 2010

THE WAR ON THE TAX-EATERS:

How the new Pa. pensions law redistributes dollars (Dan Hardy, 11/16/10, Philadelphia Inquirer)

Until Monday, when the state legislature passed a new pension bill, Pennsylvania's two state retirement systems - one for public-school employees and one for state employees, including legislators - were headed for a fiscal train wreck. [...]

With Gov. Rendell's expected signature, the new law will rein in ballooning pension payments by spreading out contributions over additional years. It also imposes limits on how much state and school district payments can increase in any one year.

Pensions for the current retirees and employees of the Public School Employees Retirement System (PSERS) and the State Employees Retirement System (SERS) - a total of nearly 700,000 people - will not change.

But future workers will see a 20 percent cut in pensions, unless they choose to contribute more.

That change kicks in Dec. 1 for legislators; Jan. 1 for other state employees; and July 1 for school employees.

Future workers may also have to contribute more if the pension systems don't live up to investment projections.

New employees in both groups will have to work 10 years instead of five to be included, and the retirement age with full benefits will rise.

Enhanced by Zemanta
Posted by Orrin Judd at November 16, 2010 6:39 AM
blog comments powered by Disqus
« AS IF IT WEREN'T ENOUGH THAT THEY WERE KEEPING PELOSI AND REID...: | Main | TWO FOR FIGHTING: »