The budget proposal saves $140 million by assuming no raises for bargaining units with contracts currently in negotiations.
The latest valuation of Connecticut’s state employee pension fund, which assumes the plan pending before the legislature would be ratified, shows it would push the fund into its worst fiscal shape in three decades.
Gov. Dannel P. Malloy’s administration is in negotiations with state employee unions — but only over how to restructure payments Connecticut owes to its cash-starved employee pension system, not any changes in benefits or employee contributions.
A major Wall Street rating agency warned it might lower Connecticut’s bond rating — pushing up interest costs on capital projects — if the state adopts Gov. Dannel P. Malloy’s plan to restructure contributions to the employee pension fund.
The state auditors issued a special report Wednesday disclosing a major breakdown in safeguards in the comptroller’s office that could have led to the improper payment of millions of dollars in disability retirement benefits.