Municipal Pensions

Margaret J. Krauss / 90.5 WESA

On a Monday morning in February, people packed the Pittsburgh mayor’s conference room to witness the city’s successful transition to financial independence — an event lauded as a turning point for the city’s future.

Matt Rourke / AP Images

Pittsburgh Mayor Bill Peduto makes his monthly appearance on the program. He'll discuss why the city has filed suit for $11.4 million in gaming funds he says are owed to the city by the Intergovernmental Cooperation Authority. The mayor will also share his reaction to Governor Wolf’s task force’s recommendations on municipal pensions, his experience joining with other mayors to push for immigration reforms, and what he thinks about the Steelers bid to bring the Super Bowl to Pittsburgh.  

Following the release of recommendations from Gov. Tom Wolf’s Task Force on Municipal Pensions, Pittsburgh Mayor Bill Peduto said that while the recommendations do not contain every pension change he’d like to see, it’s an important start.

“We wanted to see some movement on a hybrid model, defined benefit plan, and perhaps reform state Act 205 which gives funding to cities with distressed pension plans like Pittsburgh,” said Peduto’s spokesman Tim McNulty, “but, it was an important first step.”

Lindsay Lazarski / WHYY

Scranton’s double-pension payments – offered as a retirement incentive to 35 city workers – were improperly implemented, and cost the city $2.9 million in unapproved costs.

State Auditor General Eugene DePasquale released a report this morning which found “the transactions surrounding the doubling of pension payments revealed a disregard for the applicable laws governing pension plans by the officials charged with fiduciary responsibility for the Plan – the Mayor, City Council, and the Pension Board.”

AP Photo/Matt Rourke

A month after Republican lawmakers advanced a plan to end the traditional pension for new state workers, they’ve set their sights on doing the same for future municipal employees in Pennsylvania.

The cited reason for the change has been repeated in most debates over public pensions: People are living longer, and the annual pension payouts for city retirees are getting harder for municipal governments to afford.