Two major state pension funds, one for government workers and the other for public school teachers, carry $41 billion in unfunded liability, according to a new report. The “Keystone Pension Report,” from Governor Tom Corbetts Budget Office, outlines how the debt arose and what it means if the state doesnt find a way out.
Absent meaningful structural pension reform, the states General Fund budget is on a very predictable path that will force a choice between either fully funding pension obligations or making cuts to the core functions of government, Budget Secretary Charles B. Zogby said in a statement announcing the study. With a clear understanding of the crisis and the challenges we confront, it is imperative that Pennsylvania find a workable solution.
