Jun 9, 2015 1 min read

HARRISBURG (AP) – Republican lawmakers in Pennsylvania are touting a plan to reduce the rising cost of municipal pensions that they say are forcing cutbacks in police and fire protection.

The House State Government voted along party lines Tuesday in endorsing the measure. The bill now goes to the full chamber.

The proposal would allow municipalities to freeze defined-benefit plans for current employees and divert new hires to a “cash balance” plan which operates like a 401(k)-style defined contribution plan. Employees would be guaranteed a credit on interest earned, up to a specified amount. Any amount above that would be plowed into paying down the unfunded liability of the defined-benefit plan.

Lancaster Mayor Rick Gray, a Democrat, calls the proposal “one step forward.” He says he’s “disheartened” by the lack of Democratic support.