Pennsylvania Pays Pension Penalty as Bond Costs Climb

Pennsylvania, home to a quarter of all U.S. public pensions, has spent at least $2 billion since 1985 to help pay for managing the retirement plans, including thousands that cover no more than 10 municipal workers each.

The subsidy has prompted towns such as Halfmoon and Elk Lick to set up even smaller plans, with fewer than five members. Some don’t monitor or rein in administrative costs, including those paid to firms such as PNC Financial Services Group Inc.