According to an article in the Morning Call, faced with a $41 billion unfunded pension liability, the Corbett administration Monday set the stage for negotiations on overhauling the state’ss retirement systems with a report suggesting current employees could face cuts in benefits they have not yet accrued. The imbalance between the liabilities and assets of the two state pension systems — one for state employees and the other for public school employees — gives them a combined funding ratio of just under 68 percent, well below the 80 percent that is considered healthy, according to the report released Monday by the state Office of the Budget. Gov. Tom Corbett has spoken of the urgency of overhauling the retirement systems, and the report says he intends to address pensions as part of his budget proposal for the upcoming fiscal year, which begins July 1. Click here to read the Morning Call article.

Click here for the Keystone Pension Report.

Source: MyPLS The Eye Opener, Nov. 27, 2012.