The Pennsylvania Senate on Thursday rejected the pension proposal approved this month by the House, Philly.com reported on Friday. Late last year, the Senate approved a bill to change retirement benefits for future state and public school employees, calling for them to receive both a less generous version of the traditional retirement benefit for current employees as well as a 401(k)-style plan. Under the proposal the House approved this month, new hires would keep the traditional benefit plan for the first $50,000 of their annual salary, with a 401(k)-style plan targeted for anything above that. Pension changes became a key sticking point during last year's historic budget impasse between the legislature and Gov. Tom Wolf. The Democratic Wolf administration and the GOP-led legislature have been working to avoid another stalemate, but neither side has indicated that a deal will occur by this Friday's deadline for a new state budget. Both have key differences to resolve, including how much to spend in the next fiscal year.
