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September 16, 2019Cart

Business

by Fairfield County Business Journal
by FCBJ

Gov. Malloy seeks restructuring of funds to teachers’ pensions

Gov. Dannel Malloy is looking to the state legislature to restructure the state’s contributions to teachers’ pensions, saying that Connecticut “simply cannot afford annual payments of $4 billion to $6 billion” under the current arrangement.

Malloy’s figures came from a 2014 report by the Center for Retirement Research at Boston College, which said that required contributions to the two teachers’ pension funds cost between $1 billion and $1.6 billion last year, and estimated that each could cost beyond $6 billion a year by the early 2030s.

“We must make smart reforms now to fix the system, and we can do it without curtailing benefits for teachers,” the governor said. “If we don’t act, there will be no way to meet these obligations without hollowing out major state programs such as Medicaid and municipal aid. It’s that simple.”

Malloy asked the General Assembly to prioritize the teachers’ fund in the regular 2018 session, which begins Feb. 7.