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.
Teachers Retirement System
Connecticut’s Teachers Retirement System is underfunded by at least $13 billion and the state’s actuarily required contribution has grown 145 percent over the past ten years.
Connecticut has the most underfunded pension system in the nation, amassing more than $127.7 billion in liabilities, according to an annual study by the American Legislative Exchange Council.
A survey by the Connecticut Business and Industry Association shows that business owners want Connecticut to reform its state retirement benefits by a wide margin. Of the business owners surveyed, 91 percent want reforms to Connecticut’s state pension system, which includes eliminating overtime from pension calculations and moving employees into a 401(k) style defined contribution plan.
Connecticut teachers would be wise to avoid leaving the profession early if they hope to see a return on their pension contributions, according to a new study published by the Thomas B. Fordham Institute, an education policy think-tank. According to the study, which looked at teacher pension systems in all fifty states, Connecticut public school teachers must work a minimum of 25 years before their pension benefit will equal more than they paid into the system, after adjusting for inflation.