401(k)-style Plans To Replace Municipal Pensions? Possible in PACategories: New England Developments
York Daily Record by Mary Wilson, June 9, 2015
A month after PA 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. To curb the growth of retirement costs, a coalition of mayors and municipal officials want to switch to 401(k)-style retirement plans for all future hires — including police and firefighters.
Proposals are starting to gain traction after years of lobbying. A House plan passed out of committee this week, and a similar Senate measure is being teed up for consideration.
At a news conference Tuesday, Lancaster Mayor Rick Gray said final passage can’t come soon enough.