When given the choice between Connecticut's failing pension system and the state's defined contribution plan, Robert Guynn took the road less traveled -- and he's doing fine.
Fringe benefit rates for Connecticut’s state employee and teacher retirement plans in 2018 jumped as much as 52 percent, according to figures from the Comptroller’s Office.
Connecticut has made its full annual payment and reduced the discount rate for its pension plans, but according to a study by Pew Charitable Trusts the state is still not contributing enough to prevent pension liabilities from growing.
In a clear demonstration that discount rates matter for pension funds, Connecticut saw its pension liabilities increase by $9 billion after lowering its estimated rate of return by a total of 1.6 percent for its two major pension plans.
Connecticut’s official balance sheets will be noticeably worse next year due to changes in how the state reports its retiree healthcare liabilities, according to a report by the organization Truth in Accounting.
Connecticut's retirement healthcare fund for state employees is short $36 billion, which amounts to more than $10,000 per person in the state, according to a new study by the American Legislative Exchange Council.