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Corbett pushes for pension reform

He hints he'll hold up budget

HARRISBURG — Gov. Tom Corbett hinted Tuesday that he is prepared to hold up the state budget past the June 30 deadline unless lawmakers enact legislation to significantly rein in the soaring costs of pensions for future state and school employees.

“I’ve made it clear that I think pension reform is extremely important, even though it doesn’t bring that much money into it, I think it brings some,” he said in an impromptu news briefing. “But we need to get some things done. I can’t guarantee when this budget’s going to get done, I don’t guarantee anything.”

If lawmakers deliver on a pension overhaul, the Republican governor suggested he might be willing to support new taxes to ease a potential $1 billion-plus shortfall.

In that case, “I’m not sure what I’m open to,” he said. “We’ve got to take a look at all the sources of revenue. We’ve got to take a look at all the funds that are out there. We’ve got to look for any rainy day funds that may be out there.”

Corbett supports a proposal by Rep. Mike Tobash, R-Schuylkill, that would combine a limited traditional, defined-benefit pension with a 401(k)-style defined-contribution plan. It is expected to save more than $10 billion over a 30-year period.

The proposed changes would not affect active public employees who are members of the Public School Employees’ Retirement System and the State Employees’ Retirement System.

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