Corbett scales back goal in Pa. pension overhaul

Corbett scales back goal in Pa. pension overhaul

HARRISBURG, Pa. (AP) — Gov. Tom Corbett is making a new effort to persuade lawmakers to pare back public employee pension benefits, but the scale of the savings and changes he is seeking appear more modest than the more ambitious proposal that collapsed in the Legislature last year.

Corbett’s budget secretary, Charles Zogby, said Monday the administration is studying a “hybrid” concept that would save $7.4 billion over 30 years in pension benefits for state and public school employees. In a departure from last year’s proposal, it would preserve the traditional pension for lower-salary employees and shift retirement benefits that are based on earnings over $50,000 a year into a 401(k)-style plan.

Various retirement systems are experimenting with hybrid plans, and Corbett’s proposed changes would target only future employees under the Public School Employees’ Retirement System and the State Employees’ Retirement System.