PHA Reaches Union Pension Deal

The PHA and union workers have agreed on a new pension plan that changes how government workers get their retirement pay.

Starting this spring, union members at the PHA will have a defined payment plan, similar to a 401k in the private sector.

City and state workers have a defined benefit system, which guarantees a fixed return annually on pensions. But many budget experts say that system is outdated and it puts a huge stress on taxpayers.

Both sides at the PHA looked at the numbers and realized that the pension fund was not sustainable.

The new plan is effective April 1.