3. Limiting the amount by which the commonwealth's employer contributions can be increasedCurrently, the state must pay an annual required employer contribution rate, which is determined by the amount of unfunded liability and other costs. By law, the state must increase that rate by 4.5 percent each year. This annual rate, currently hovering over 10 percent for both funds and expected to rise to close to 30 percent in the next 8 years, has caused unsustainable growth in employer contributions.
Governor Corbett Releases Pension Reform Plan
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