Lege Trend: The Stacked Hybrid Pension Reform. 5 Bits of Intel:

What’s Pennsylvania’s 2016 pension reform? A Stacked Hybrid Plan

What’s a Stacked Hybrid Pension?

• Applies to all new employees- state employees & public school teachers
  • baseline pension
  • traditional formula of years of service x 2% of final average salary
  • converts to a (401)k-style plan for any income earned over $50,000-per-year, & for all income after 25 years of service
  • For new enrollees, the the 401(k) threshold income would be adjusted up by 1%
  • 7% employee contribution
  • 4% state contribution on compensation above the 401(k) income threshold
• No impact to current employees or teachers
• Excludes State law enforcement

What’s the saving to the state with this pension reform plan? $10 billion over 30 years

How’s the reform progressing? Easily passed the House 136 to 59

What do supporters say? This reform will ” save the debt-plagued public pension systems billions over the coming three decades”

Pennsylvania HB 1499

Herald Mail Media | Pa. House sends public pension overhaul to Senate