HARRISBURG, Pa. (AP) — A key Republican lawmaker is proposing $9 billion in borrowing as part of a new approach to rein in the soaring costs of pensions for Pennsylvania teachers and state employees.
Rep. Glen Grell, the House Republican majority's point man on pensions, acknowledged as he unveiled his plan Monday that so far it lacks support from Republican Gov. Tom Corbett and House GOP leaders.
But he says it would produce savings over 30 years that would offset most of a $41 million funding gap in the state's two major public pension funds.
Besides borrowing, Grell proposes creating a "cash balance" retirement plan for newly hired employees that guarantees an annual return of at least 4 percent. He also proposes offering incentives to current employees who agree to voluntary pension adjustments.