PA real estate developer gets $1.2M in pension contributions to pay for retiree health care coverage
Pennsylvania real estate developers will soon have a new perk: the retirement of health care contributions.
In a deal with the state, the Pennsylvania Real Estate Development Corporation will provide $1 million to developers of retirement homes and apartment complexes.
The deal was first reported by the Associated Press.
The retirement will take effect in 2026, according to the PADDC.
“Our commitment is to provide retirement benefits to our workers in a way that is consistent with the PA’s state retirement law,” PA Gov.
Tom Wolf said in a statement.
“We are confident that the new agreement will provide a safe, dignified and sustainable way to provide these benefits.”
The retirement contribution is expected to generate a total of $10.7 million in annual retiree benefits, according the PA Development Corporation.
The Pennsylvania Retirement System has been trying to get state retirees to make retirement contributions in recent years.
In 2016, the agency was forced to abandon its plan to pay employees by giving them the option of not contributing.
The plan was ultimately pulled in the face of a national backlash.