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Governor Wolf Signs Pension Reform Bill Into Law

HARRISBURG, Pa. (CBS) -- Governor Wolf signed a bill Monday that will overhaul the pension structure for tens of thousands of Pennsylvania public school teachers and state employees.

Governor Wolf and other supporters of the public employee pension reform bill he signed call it historic. It is intended to shift new hires fully or partially toward 401k style defined contribution plans. While it will reduce taxpayers' liability in the long-term, critics say it does little to address the crushing pension obligation currently draining state resources. But Governor Wolf says the state has no other choice but to meet that obligation.

"The fact is we cannot accelerate the shrinking of our liability on the backs of our current employees," the governor said, "and this bill recognizes that in a real concrete way."

Wolf says the bill is a compromise that addresses pension costs while providing a fair retirement benefit. The pension changes will not affect future corrections officers, state troopers and other state law enforcement personnel.

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