There's a growing recognition among Connecticut state and local government that 401(k)-style retirement plans will be necessary in the long run. The private sector does it, so why are government employees so worried?
Recent news reports confirm what many have suspected for some time — young people are leaving Connecticut. How does this relate to pension debt? As a current graduate student who would like to stay in Connecticut after I finish school, I’ll explain. The state has accumulated billions of dollars of pension debt, and now it is trying to figure out how to pay that debt off.
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 ...