The Way Your Pension Is Calculated Could Be Changing In The State Of Pennsylvania

06.15.16 | Sarah Harnisch

A major pension reform bill flew through the house yesterday in a 136 to 59 vote. It affects every state employee and teacher.

It's called the stacked hybrid plan-- And it means the first 50-thousand dollars in income would be put into a traditional defined benefit plan, and employees would contribute 7% of their salary. Any income after that would be put into a 401K-style plan, and state and school districts would match 4%.

Many lawmakers want to see all new hires put into a 401k style plan now. That plan didn't make it to the House floor.

This current deal now heads to the Senate-- Where it is unlikely to pass in its current form.