TribLIVE

| News


 
Larger text Larger text Smaller text Smaller text | Order Photo Reprints

Corbett signs anti-spiking pension bill into law, could save Allegheny County $1.1 billion

Related Stories

Daily Photo Galleries

Monday, Dec. 23, 2013, 4:24 p.m.
 

Gov. Tom Corbett signed a bill Monday that changes Allegheny County's pension system and is expected to save taxpayers $1.1 billion over 50 years.

The bill, sponsored by state Rep. Mike Turzai, R-Marshall, caps the amount of employee overtime used to determine pension benefits and changes the formula used to calculate payments.

It will affect only employees hired after Jan. 1, 2014.

Supporters of the bill say the reforms will prevent employees from “spiking” their salaries with overtime pay during their final years with the county, which results in bloated pension payments.

Opponents have said the overtime cap should have been left out of the bill and discussed with labor union representatives during contract negotiations.

Pension payments currently are calculated based on the average monthly salary earned during the highest-paid 24 months of the final four years of employment. Under the new law, payments will be based on the average of the highest-paid 48 months during the final eight years of employment.

 

 

 
 


Show commenting policy

Most-Read Stories

  1. Pirates inquire about Red Sox LHP Lester
  2. Former walk-ons may lose scholarships under Penn State’s Franklin
  3. Police: Westmoreland women stole thousands to pay for dog show hobby
  4. U.S. Steel’s 2Q loss beats analysts’ estimates
  5. Steelers hoping that youth movement breathes life into team
  6. Pirates expect high prices in trade market
  7. Police investigate how woman fell onto CMU apartment roof
  8. Pittsburgh schools’ teacher evaluations approved
  9. Truck rolls over on Parkway East
  10. Water main break closes Upper St. Clair road
  11. Pittsburgh Brewing tries to reconnect with region, return to glory days
Subscribe today! Click here for our subscription offers.