Pennsylvania Senate Rejects Pension Overhaul

The Pennsylvania Senate on Thursday voted down a pension overhaul proposal that had earlier cleared the House.

The bill was a bi-partisan pension reform bill and its scope was much smaller than past bills.

From the Philadelphia Inquirer:

Under the proposal the House approved this month, new hires would keep the traditional benefit plan for the first $50,000 of their annual salary, with a 401(k)-style plan targeted for anything above that.

Pension changes became a key sticking point during last year’s historic budget impasse between the legislature and Gov. Wolf. Corman and other Republicans have said the state cannot begin to address its fiscal problems without tackling rising pension costs.

[…]

The Democratic Wolf administration and the GOP-led legislature have been working to avoid another stalemate, but neither side has indicated that a deal will occur by next Friday’s deadline for a new state budget. Both have key differences to resolve, including how much to spend in the next fiscal year.

Lawmakers left the Capitol on Thursday and are not scheduled to reconvene until Monday – although the House Appropriations Committee is set to meet Sunday night, presumably to begin moving a budget bill.