The Pennsylvania House of Representatives shot down a pension reform bill on Saturday in a 149-52 vote.
The bill would have established a hybrid pension plan for future state and school employees and modify future benefits of current members of the $51.7 billion Public School Employees' Retirement System and the $27 billion State Employees' Retirement System, both in Harrisburg. The two plans have combined unfunded liabilities of $60.1 billion.
In July, Gov. Tom Wolf, a Democrat, vetoed a pension reform bill that proposed all new state and public school employees be enrolled in a mandatory defined contribution plan, as well as offering an optional cash balance plan.
In September, Mr. Wolf proposed a new pension system that included a mandatory 401(k)-style plan for all new employees making at least $75,000 in annual income. In addition, all employees would be given the option to participate only in a defined contribution plan at their time of hire. The plan also featured a risk-sharing component for all new employees.
Jeffrey Sheridan, a spokesman for Mr. Wolf's office, did not respond to requests for comment.
