Corbett calls for Pa. pension overhaul - WFMJ.com News weather sports for Youngstown-Warren Ohio

Corbett calls for Pa. pension overhaul

HARRISBURG, Pa. (AP) - Gov. Tom Corbett says overhauling Pennsylvania's pension systems for state workers and school employees is the single most important thing lawmakers can do.

In Tuesday's budget address, the Republican said the pension debt is like an avalanche that threatens to stop economic growth and take funding from schools and senior citizens.

Corbett wants a new mandatory defined-contribution plan for new hires, reductions in future benefits for current employees and reduced annuity payments to employees who withdraw their contributions.

State Budget Secretary Charles Zogby says the changes will save $175 million in the fiscal year that starts July 1. Corbett proposes using those savings to reduce taxpayers' contributions to the two major pension systems.

Public employee unions say reducing benefits for current employees is unconstitutional and have vowed to sue.

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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