Pension Deal Fails — Pennlive.com has reported that a pension reform plan that was integral part of a deal for Pennsylvania to finally pass a budget Gov. Wolf would be willing to sign has failed.
The vote in the Pennsylvania House was 149-52 against. The Senate was demanding the reform to agree to significant tax hikes sought by Wolf.
The state’s pension system is horribly underfunded and the reform sought — moving FUTURE state government and school employees into a pension system that combined a down-sized guaranteed benefit plan with a 401(k)-style plan — was extremely mild but still a necessary step in the right direction.