A new report suggesting that Pennsylvania employees may face benefit cuts they haven't yet earned is setting the stage for negotiations that could lead to an overhaul of the state's two pension systems, according to the Pittsburgh Post-Gazette
Republican Gov. Tom Corbett's administration unveiled the report Monday as the governor prepares to offer his budget proposal for the upcoming fiscal year.
According to the report, the state pension systems for public school teachers and state employees are underfunded by about $41 billion. As a result changes may have to be made that affect not only new employees but the future earnings of current employees, the Post-Gazette reported.
That's likely to draw stiff opposition from labor unions, which would resist any move to tweak current workers’ benefits.
David Fillman, director of the American Federation of State, County and Municipal Employees, in Pennsylvania, noted that some court decisions have already put retirement terms and benefits for current workers off limits.
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