Skip to comments.Report: Connecticut was among nation's worst at saving for public benefits
Posted on 06/19/2012 3:37:48 PM PDT by matt04
With states' savings for employee retirement benefits at an all-time low, Connecticut ranked among the worst of the worst in 2010, according to a new report this week from the Pew Center on the States.
Reeling from recession-driven investment losses, a pension raid to prop up state finances and a history of not saving for retiree health care, Connecticut government had more than $71 billion in liabilities and less than $24 billion set aside to cover them two years ago.
And though Gov. Dannel P. Malloy has launched initiatives to limit retirement benefits and to increase state contributions, the challenge could grow should Connecticut join other states in recognizing the likelihood of fewer investment earnings in the future.
"States continue to lose ground in their efforts to cover the long-term costs of their employees' pension and retiree health care," the Washington, D.C.-based center, a nonprofit public policy think-tank, wrote in its latest report.
There is a $1.38 trillion gap between the total pension and retiree health care liability facing states and their respective municipalities, and the funds they have set aside to meet them. Of that figure, $757 billion was for pension obligations, and $627 billion was for retiree health care.
That's up 9 percent from the gap states faced in 2009, and 38 percent higher than the 2008 margin.
The latest report notes that "many experts say that a healthy pension system should be at least 80 percent funded."
More than half of the states were 100 percent funded in 2000, but by 2010 only Wisconsin hit that mark, while 34 percent were below the 80 percent threshold.
Connecticut ranked the worst, along with Illinois, Kentucky and Rhode Island, in 2010.
(Excerpt) Read more at ctmirror.org ...
They have NO EXCUSE except avarice. That'd be found in a system where they get their help cheap and then bug out on their retirements.
Is this a surprise?
CT citizens... move before Mallory bans moving out of state!!!