Connecticut will make more than $1.6 billion in supplemental payments into its cash-starved pension systems this fall.
By depositing $1.2 billion extra into its pension funds now, the state hopes to save $2.75 billion over 25 years.
The budget proposal saves $140 million by assuming no raises for bargaining units with contracts currently in negotiations.
Connecticut continues to pay millions of dollars annually in pension benefits beyond federal and contractual limits, state auditors reported Monday.
Gov. Ned Lamont checked off a key box on his budget to-do list Thursday, announcing a deal with state employee unions to refinance payments into the workers’ pension fund.
The two-year state budget lays the groundwork for tolls, shifts more pension debt onto future taxpayers, deals another blow to hospitals, but closes a multi-billion dollar shortfall without raising the income tax.
Gov. Dannel P. Malloy has repeatedly attacked a linchpin of the Republican budget plan on legal grounds, arguing that unilaterally trimming pension benefits in 2027 to save millions now is doomed to failure in court. On Tuesday, in an effort to influence bipartisan budget talks, he said the GOP’s math doesn’t work, either.
Connecticut’s cash-starved pension funds for state employees and municipal teachers got a big boost last fiscal year, state Treasurer Denise L. Nappier reported Monday.
The legislature’s Appropriations Committee Tuesday endorsed a new plan that would allow Connecticut to defer billions of dollars in required contributions to the state employees pension fund until after 2032.
In the first partisan fight of 2017, Democrats in the House of Representatives blocked a Republican proposal Wednesday that would have ended a longstanding practice of approving state employee contracts without a vote.
Moody’s Investors Service, one of the four major credit rating agencies, labeled the proposal negotiated by Gov. Dannel P. Malloy’s administration and state union leaders as a “credit positive” for Connecticut in the agency’s weekly credit outlook statement.
The fate of Gov. Dannel P. Malloy’s plan to restructure the state employee pension system — which would shift billions of dollars of costs onto future taxpayers — mustn’t be resolved without votes by the House and Senate, according to the top Republicans in both chambers.
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.
Connecticut faces sharply rising pension costs over the next two decades — but nearly $2 billion less at its worst point than the nightmare scenario Gov. Dannel P. Malloy outlined two months ago, according to a new analysis Wednesday from state Treasurer Denise L. Nappier.
Though Gov. Dannel P. Malloy’s plan to restructure state pension payments doesn’t provide any budget relief until 2019, some legislators are looking to the pension fund one more time to help Connecticut out of its current budget crisis.