The Internal Revenue Service has issued rules that will possibly lower pension payouts for some retired Connecticut state employees, or force others to pay money back to the state retirement system, according to a memorandum from the Office of the State Comptroller. In some cases, the pensioner may see an ...
Study: Kids in Connecticut are Born Broke
Kids in Connecticut are born broke – more than $27,000 in debt – because of billions in unfunded pension promises. State estimates suggest citizens owe $25 billion, but this Yankee Institute study found the real number is more than three times higher, $76.8 billion.
The state owes another $22.7 billion to cover retiree healthcare costs. To pay for these promises, Connecticut needs a plan. One solution would require raising taxes by nearly $1,500 per family, which could severely damage the economy.
Instead, the study recommends adopting defined-contribution plans – much like a 401(k) – for new state workers as soon as possible.
Read a summary of the study here.
Center for Retirement Research estimates 4 percent funding drop in Connecticut state employee pension system
The Center for Retirement Research at Boston College issued a report on the pandemic’s effect on state and municipal pension systems and listed Connecticut’s State Employee Retirement System as one of the ten worst-funded pension plans in the country. The report projected SERS would see a 4.6 percent decline in ...