A hybrid plan, a garage sale, and selling off a utility top the news about solving the costs related to pensions this week.
Starting with the efforts on the state’s two statewide plans (one covering state employees and one covering public school employees) the Governor announced he is in favor of a hybrid plan that would only apply to new hires. A hybrid plan combines characteristics of a defined benefit plan and a defined contribution plan and would be a different approach from the plan the Governor put forward in February of last year.
At the local level—where 3,000 plus plans exist—two of the state’s largest cities are grappling with pension issues as well. Philadelphia is debating the sale of the Philadelphia Gas Works to fund pensions and Scranton is looking to its parking garages to pay for back awards due to arbitration. Both proposed asset sales echo the debate the City of Pittsburgh had over the proposed garage/lot/meter lease that we chronicled throughout most of 2010.
