Report: CT Among Worst Pension Deficits in U.S.

Out of the 50 states, a report shows that Connecticut is among the worst in terms of fiscal health.

After years of underfunding, the long-term retirement costs of Connecticut’s state employees are a cause for “serious concerns,” according to a new study from the Pew Center on the States.

As of the fiscal year 2010 — the most recent year included in the study — Connecticut’s pension was only 53 percent funded, leaving a liability of $44.8 billion. The only state with a worse percentage is Rhode Island. Neighboring New York is 94 percent funded, while Massachusetts is 71 percent funded.

"Many states have not held up their end of the bargain when they should have been paying for the promises they made,” stated the full report (PDF attached).

Health care for retirees was completely unfunded, with $26.7 billion owed. The average state has funded 8 percent of its health care, yet 17 states paid for zero of amount owed.

Recent reforms enacted since Gov. Dannel P. Malloy have not been included in the time frame of the study, such as layoffs and reductions in benefits. According to the study, Malloy reportedly proposed a pension funding plan “calling for the state retirement system to reach 90 percent funding by 2025 and full funding by 2032." 

Gerald M. Gaynor June 19, 2012 at 08:23 PM
What a surprise, a series of fiscal promises made without the funding to keep them. When individuals or corporations engage in such behavior they are treated to criminal prosecutions; when governments do it, it is viewed as "Business as Usual."
Milan Moravec June 20, 2012 at 01:10 AM
California solves inept financial decision at University of California by raising tuition for Californians.Access, affordability to University is farther and farther out of reach. University of California Berkeley Chancellor Robert J Birgeneau is outspoken on why elite public Cal. should ‘charge Californians much more’ tuition. Number 1 ranked Harvard is now less costly (all in costs) than Cal. UC Berkeley tuition rising faster than costs at other universities. Birgeneau’s ‘charge more’ tuition makes Cal. the most expensive American public university!
MAC June 20, 2012 at 10:45 PM
CT is the #1 "sinkhole state" according to the below, from the The Institute for Truth in Accounting. "States Have $900 Billion of Off-Balance Sheet Debt" Chicago, (June 13, 2012) -The Institute for Truth in Accounting (IFTA) today released its second annual study of all 50 states' assets and liabilities, including pension and retirement healthcare obligations. All the states together have more than $900 billion in off-balance sheet liabilities, and the taxpayer burdens in most states continue to grow."... "The report reviews each state's financial condition and identifies the top five 'sinkhole' states, or the states in the worst financial condition."... "The five 'sinkhole states' and the amount ^^ each taxpayer ^^ would have to send to its state treasury are: Connecticut ($49,000), New Jersey ($35,800), Hawaii ($32,700), Illinois ($31,600), and Kentucky ($23,500)."... http://truthinaccounting.org/state-of-states/


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