Research Report Assessing Pension Benefits Paid under Pennsylvania's State Employees' Retirement System
Richard W. Johnson, Barbara Butrica, Owen Haaga, Benjamin G. Southgate
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Pennsylvanias pension plan for state employees receives a failing grade in the Urban Institutes state and local pension plan report card, and ranks as the third-worst plan in the nation covering newly hired general state employees. The plan scores poorly because it is inadequately funded, it penalizes work at older ages by reducing lifetime benefits for older employees, and it provides few retirement benefits to short-term employees. Age-25 hires must work 32 years before they accumulate rights to future pension benefits worth more than their required plan contributions. Various pension reforms could distribute benefits more equitably across the workforce.
Research Areas Wealth and financial well-being Aging and retirement Taxes and budgets State and local finance
Tags Economic well-being Pensions Wages and nonwage compensation State and local tax issues Retirement policy
Policy Centers Income and Benefits Policy Center