Allegheny County DA Sues Over $1.4 Billion Pension Gap as Fix Could Cost $100 Million a Year
Updated
Updated · CBS New York · Jul 1
Allegheny County DA Sues Over $1.4 Billion Pension Gap as Fix Could Cost $100 Million a Year
2 articles · Updated · CBS New York · Jul 1
Summary
$1.4 billion in pension underfunding has pushed the Allegheny County District Attorney's Office to sue the county, raising the prospect that a judge could force corrective action.
A consultant report says the county must find about $100 million annually for 20 years to make the plan solvent and meet retirement promises to workers.
County leaders have few easy options after years of delay: the report urges an everything-on-the-table response, including higher employee contributions, department cuts and possibly another tax increase after last year's 36% property tax hike.
The shortfall has built for decades despite past steps to raise employee contributions to 11% and trim benefits for new hires; the full report is due next week, when Controller Amy Weiss Clements is expected to address it.