Submitted by greenhousecrtv t3_11c6n94 in Pennsylvania
ktxhopem3276 t1_ja5xjqe wrote
Reply to comment by ScienceWasLove in Pennsylvania Makes Progress Toward Public Employee Pension Sustainability by greenhousecrtv
Read the article and you will see how dire the funding problem is. If the state doesn’t have a turnaround in its financial fate in the future, even further cuts aren’t out of the question unless republicans support a significant income tax increase
Although the plans’ funded level remained relatively low in 2020 at 58%—below the national average of 70%
But unfunded benefit increases and a longtime pattern of not fully funding annual required contributions meant that the state went from a $20 billion surplus in 2000 to a $60 billion deficit in 2015—one of the largest dips recorded nationwide.
The changes made by Act 120 were important steppingstones to Pennsylvania's pension turnaround. Still, they did not fully address the risk of future unfunded liabilities that could strain the state’s ability to fund pension benefits. As a result, lawmakers overwhelmingly—and on a bipartisan basis—approved Act 5 in 2017. That law made additional improvements to funding policy and put in place a new benefit plan design, called a risk-managed hybrid plan,
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