HARRISBURG, Pa. (AP) — Legislation that would shift state lawmakers, judges and elected executive branch officials into a 401(k)-style system is heading to the Pennsylvania state House of Representatives.
The Senate voted unanimously to approve the bill Monday night. Leaders of the Republican-controlled House have been noncommittal toward the bill while they try to assemble enough support to pass a measure with a wider-ranging reduction in public employee pension benefits.
Under the bill that passed the Senate, lawmakers, judges and five executive branch officials would shift out of the state government's traditional defined benefit program and into the new retirement program upon re-election.
The state would contribute 4 percent of salary to it, while participants would contribute 6.25 percent. It is projected to save taxpayers $690 million over 38 years.