Pension Plan for New Hires
Picking up more buzz on HB 1352 and HB 1353, DC plans for new hires. Still no clear direction on what pension changes will be pushed by leadership. Tobash continues to push hard on his plan and he has the active support of James L. McAneny, ED of PERC. Actually have heard the Tobash plan called the McAneny Plan.
Being told another plan is being developed by the Administration, that will include most of the Tobash plan and $1 billion borrowing to pay down the unfunded liability cost increase this year or for two years. As explained to me $500 million would go to offset the increased state contribution required under Act 120 and $500 million would go to school districts to offset their pension cost increases. Definitely believe we will see a DC plan for new hires pushed by leadership, probably shortly after the budget hearings conclude and the legislature returns to session March 10th.
http://www.legis.state.pa.us/cfdocs/legis/PN/Public/btCheck.cfm?txtType=PDF&sessYr=2013&sessInd=0&billBody=H&billTyp=B&billNbr=1353&pn=2152
State employees
HB 1353 would establish a DC plan for new hires. Employees would make a 4% contribution and would provide COs with a 5.5% employer contribution compared to other state employees at 4%. It also limits final compensation to no more than 110% of final four years of pay.
Robert Storm
Eastern Region Vice President
www.pscoa.org