HARRISBURG, Pa. (AP) - Pennsylvania's auditor general is warning that rising pension costs for local government workers could push municipalities into bankruptcy and spur tax increases if changes are not made.
Auditor General Eugene DePasquale sounded the alarm Wednesday as he released a report that said Pennsylvania's approximately 1,200 municipal pension systems are underfunded by billions of dollars.
DePasquale says most of the systems were funded at 90 percent or higher, based on three-year-old valuations. But he says systems that are below that were underfunded by $6.7 billion, with three-fourths of that attributable to Pittsburgh and Philadelphia.
He makes a number of recommendations to try to lower pension obligations to future employees and calls for consolidating the plans' administration under one roof.
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