HARRISBURG, Pa. -- Governor Tom Wolf is expected to sign legislation Monday that would reform the state's current pension program and start fixing the state's pension debt.
Currently, the state is about $75 billion in debt when it comes to paying retirement for state works and teachers. Under the new legislation, workers will have three different retirement options by 2019. The three options available are:
- A side-by-side defined benefit/defined contribution hybrid plan with a 1 percent accrual rate.
- A side-by-side defined benefit/defined contribution hybrid plan with a 1.25 percent accrual rate (this will be the default plan if no election is made by the employee).
- A defined contribution-only option.
However, it only reduces the rising debt by about $1.5 billion over the next 30 years.
Many supporters of the bill say while it's not perfect, it is a step in the right direction. Governor Tom Wolf says the plan meets many of his goals including that it pays down the states debt and provides workers with a fair retirement benefit.
Governor Wolf is scheduled to sign the bill at 3 p.m. at the Capitol Rotunda in Harrisburg.