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State could take over city pensions |
August 3, 2009
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A proposed statewide pension fix could boost the city of Pittsburgh's payment for retiree benefits from $50 million this year to $73 million -- a steep jump that would be tough to manage, according to Mayor Luke Ravenstahl's administration.
The legislation, which could come up for a House vote this week, would strip the city and perhaps dozens of other municipalities of control of their pension funds. They would still foot the bill, but new employee benefits and fund investments would be controlled by the state.
The bills would overhaul a quarter-century-old system under which the state pays part of the cost of many municipalities' retirement plans, and sets funding rules, but sometimes allows exceptions like the ones that allowed Pittsburgh's fund to shrink to $251.5 million, just 28 percent of the $899 million it should hold.
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