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Administration August 10, 2009
PA Lawmaker Proposes Allowing State Pension Takeovers
August 10, 2009 (PLANSPONSOR.com) - A proposal by a
Pennsylvania state lawmaker would allow the Keystone State to
take over underfunded state pension funds.
Reported by Fred Schneyer
A news report on the Republicanherald.com Web site said the bill by Representative Tom Caltagirone of Reading would allow such a state takeover if a plan is less than 50% funded. Those funds taken over by the state would not see benefits changes for current workers or retirees, but new employees would have to contribute more to their pensions.
Municipal pensions that are 50% to 70% funded could get more limited state assistance without an outright takeover, the news report said. Fund managers seeking the more limited state help would be required to submit improvement plans.
Massachusetts lawmakers approved a similar bill for local pensions in that state in 2007. (see MA Legislature Approves Measure to GIve State Control of Ailing Local Pensions ).