HARRISBURG, PA (WTXF) - After years of arguing in Harrisburg, lawmakers have finally come together and have passed what some are calling an historic revamp of the state's pension system.
It’s called a "hybrid" plan. It gives teachers and state workers hired after 2018 a pension that's half guaranteed benefits and half 401-k style investments. Though, if they want, state employees can go all in on the 401-k.
The bill cuts retirement benefits for 'new' state employees. It doesn't change the pensions of employees hired before 2019. The current debt-ridden plan has crushed the state's ability to pay its bills since 2011.
Fox 29 sat down with Governor Wolf yesterday. He had his pen ready to sign the bill into law, saying it’s critical to the future of Pennsylvania’s fiscal health.
"The expense is going to be there for a while,” Governor Wolf told Fox 29. “I'd like to be governor in 2037 because the expense is going to go down by billions of dollars because such a big chunk is the pension."
Supporters of the new pension plan say it had lawmakers from both sides of the aisle actually working together to make it happen, something they say Harrisburg hasn't witnessed in years.