Gov. Tom Wolf signs Pa.'s pension overhaul into law

BY JAN MURPHY jmurphy@pennlive.com

Gov. Tom Wolf on Monday afternoon signed into law a pension bill that will change the retirement savings plans for future state government and public school employees hired in 2019 and after.

The plans move away from the current guaranteed pension system that public employees in Pennsylvania participated in for about a century, and to one that includes in part or in whole a 401(k)-style plan that many in the private sector have. Employees will have three retirement savings options from which to choose but once a decision is made, it's final.

The legislation passed both chambers with bi-partisan support. In the Senate, it passed by a 40-9 vote and the House, 143-53.

Wolf said he was delighted to be with the assembly of lawmakers who helped in passing the legislation and presenting it to him to sign. He said it's fair to workers and fair to taxpayers.

"I couldn't be prouder to be here ... to get real meaningful pension reform," the governor said. "Here in Harrisburg we can get important things done in a way that I think a lot of other places cannot."

The pension law is touted as one that will avoid pension cost spikes like the ones state government and school districts now face and be more sustainable in future years. It shifts the investment risk away from taxpayers and on to employees into the new pension program.