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Corbett backs hybrid public pension proposal

HARRISBURG — Gov. Tom Corbett backs legislation to replace Pennsylvania’s public pension system with a less costly hybrid system.

A spokesman said today Corbett was pleased by the Public Employee Retirement Commission’s vote to accept analyses of the proposal by actuaries representing the state’s two largest public-employee employment systems, Corbett and the commission.

The complex plan would apply to newly hired state and school employees starting next year. It would combine the traditional defined-benefit plan with a 401(k)-style defined contribution plan.

Current employees would not be affected.

Actuaries estimate the changes would save billions over 30 years, while shifting the risk from taxpayers to the employees.

Corbett, whose attempts at pension reform last year failed to garner a legislative majority, has worked with the bill’s sponsors behind the scenes for months.

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