PA pension plans are to receive pension cuts under new state budget

The Pennsylvania State Teachers’ Pension System is to receive a $100 million cut in state funding this year, according to a state budget that will be approved this week.

State lawmakers approved the plan, which will be implemented in January, in response to a $7.6 billion deficit the Pennsylvania Department of Labor, Employment and Retirement estimated last year.

The pension plan was set to receive $5.7 billion in 2018 and 2019 and $5 billion in 2020 and 2021.

The state plan, however, includes $300 million in funding for the Philadelphia Area Teachers’ Retirement System, a union-run pension plan for state employees and public school teachers.

The state also has $400 million in support for a local education funding fund that helps to pay teachers salaries.

Under the proposed budget, the pension plan would receive a total of $1.3 billion.

The budget proposal will also reduce the funding for a state plan that helps low-income residents, the Philadelphia School District and other public agencies.