PA Budget Chief: Pension Reforms Essential
Pennsylvania Governor Tom Corbett's chief budget adviser says his boss is likely to call for a reduction in future pension benefits for current employees in next week's budget speech.
Speaking at a Pennsylvania Press Club luncheon in Harrisburg on Monday, state Budget Secretary Charles Zogby said deep cuts in education or other programs are inevitable unless the rising cost of Pennsylvania's two major public pension funds is reined in.
To achieve the needed savings, Zogby says, Corbett "very likely" will propose cutting future benefits for current employees by changing the way they are calculated. He says it wouldn't affect retirees or benefits that current employees already have earned.
Zogby says the school employees' pension fund accounts for most of the increased costs because it's larger than the state employees' fund.
Copyright 2013 The Associated Press.