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Public pensions cast long shadow over Pa. budget
March 3, 2014
HARRISBURG(AP) A major challenge facing Gov. Tom Corbett as he tries to get a state budget approved is figuring out what changes can pass the Legislature for the two large public-sector pension plans that cover state government and public school employees.

The Corbett administration wants to avoid hundreds of millions in pension contributions over the next few years while directing future hires into some sort of new plan. It looks increasingly likely their proposal will combine aspects of a traditional defined-benefit plan with elements more like a 401(k).

Corbett pursued pension changes during last summer's budget talks, but was ultimately stymied.

Democrats say a 2010 pension reform law needs time to work, and they're skeptical that any short-term reductions in pension payments will be fully countered by long-term savings.

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