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Ross Township Makes Additional Pension Changes

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In October of last year we noted that the North Hills suburb Ross Township made a change for new, non-union hires by placing them into a defined contribution plan.  At the time it was mentioned that the Township had plans to do the same for new hires for public works.  That change occurred recently, and new hires from March 7th forward will be under a 401k type plan.

In the most recent PERC report Ross Township reported two pension plans, both defined benefit plans, one for police and one for non-uniformed workers.  Both have very strong funded ratios but obviously the municipality wants to be proactive in how it handles pension plans for future hires.  Both plans have roughly the same number of active and retired employees, but the police plan is twice as large in terms of assets and liabilities.  Barring a change in state law the Township would be restricted in placing its police employees into a 401k type plan per the requirements of Act 600.  Normal retirement under that plan is age 50 and 25 years of service.

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Allegheny Institute
Allegheny Institute

The Allegheny Institute is a non-profit research and education organization. Our mission is to defend the interests of taxpayers, citizens and businesses against an increasingly burdensome and intrusive government.

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