Local Trend. Less Costly Pension Reforms.

Which local government is considering less costly pension reforms? Philadelphia Board of Pensions

What’s Philadelphia’s end game? To convince 30,000 retirees to switch to a less lucrative & less costly benefits plan

What’s the liability of Phildelphia’s pensions? $10.8 billion liability with $4.9 billion funded

Didn’t Phildelphia try to buy out pensions? Yes a buy out was considered but it was determined that it would cost the pension system more than to retain the pensions

So what’s on the table to encourage a switch from a costly pension plan to a less costly pension plan?

• a one time partial payment to switch pension plan
• the partial payment would equal 50% the difference in benefits from the more costly plan to the less costly pension plan

Philly.com | Philly Pensions Board considers a less costly plan for retirees