Scary to think about how the political action of the past pose a potentially serious consequence today. If PSERS pension payments were reduced, how does it affect your retirement?
HARRISBURG, Pa. ( CBS Money Watch ) Pennsylvania Gov. Tom Corbett’s budget office indicated Monday that the governor may attempt to reduce the pensions of current public employees, a politically volatile and legally questionable solution to what has become a $41 billion unfunded liability.
In a new report on the state’s two large public-sector pensions, the budget office warned of the potential for higher taxes, program cuts, lower business growth and steeper borrowing costs because of the state’s financial obligations toward the State Employees’ Retirement System and the Public School Employees’ Retirement System.