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.
Connecticut’s two largest pension funds for teachers and state employees received 16 percent returns over the course of one year thanks to a surging stock market, giving the state a much needed boost.
Last week Pelletier decided to lash out against the Commission on Fiscal Stability and Economic Growth with an op-ed in the Hartford Business Journal and some quotes in a CT Mirror story. According to her, the commission “attacks working people” because it is daring to discuss Connecticut’s financial problems and — gasp! — look at charts and graphs.
Connecticut lowered the discount rate of the teacher’s retirement system from 8.5 percent to 8 percent in 2016, but it still remains higher than most other states. According to NASRA the median discount rate has dropped to 7.5 percent.