Posted on 12/16/2017 5:51:05 PM PST by george76
Connecticut has the most underfunded pension system in the nation, amassing more than $127.7 billion in liabilities..
The study entitled Unaccountable and Unaffordable showed Connecticut’s pension system dropping below Illinois and Kentucky when its pension liabilities were calculated with a “risk-free” discount rate equal to the rate of a U.S. Treasury bond.
Connecticut’s unfunded pension liability rose from $99.2 billion in ALEC’s 2016 study to $127.7 billion in 2017, leaving the pension system only 19 percent funded.
The debt from the public pensions amounts to $35,721 per person in Connecticut, the second highest per capita debt in the nation behind Alaska.
...
Connecticut’s pensions are part of the state’s “fixed costs” of pensions, retiree healthcare and debt service, which now comprise over 50 percent of the state budget, crowding out other state services or forcing tax increases to continue funding those services.
...
Tax revenue has also been stagnant and, in some cases, falling below state projections, leaving large deficits which lawmakers then scramble to fix with either service cuts or more tax increases.
Although lawmakers can change teacher pensions through legislative action, state employee pensions are set through collective bargaining. The SEBAC benefits contract, first signed in 1997, was extended until 2027 through a union concessions deal Malloy made with union leaders earlier this year.
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Although Connecticut ranked as one of the worst states for its unfunded pension liabilities, every state had underfunded their pensions and used overly optimistic discount rates. The total liability for all 280 state-administered pension plans included in the study exceeds $6 trillion.
“The most effective way to prevent Connecticut’s pension crisis from deepening,” Powers said, “is to remove the states ability to underestimate its liabilities by switching new hires to a defined contribution plan, as Pennsylvania has for hires 2019 and later.”
(Excerpt) Read more at yankeeinstitute.org ...
My sister in law and her extended family have been milking the CT taxpayer for decades. She has a low level gov’t professional job and flies first class everywhere
I am a “tax refugee” having fled my born & raised home in 2011. (CT to NC)
How this happens is that neither party in the “negotiations” has any incentive to hold costs down. The public service unions squat with the “Officials” and agree with no restraints. (Probably figuring, correctly, they’ll be personally long gone when the bill finally comes due.
Bastxxxxx —never mind.
Maybe Conn. shouldn’t have driven all of the firearms manufacturing out...
It’s long past time for knowledgeable individuals and businesses get out of CT while “the getting’s good”.
My father-in-law is a permanent member of the state’s arbitration board. He’s out-milking your in-laws by a long shot. And he’ll brag about it, too. Until you’re ready to puke.
How much money does Yale have in their endowment fund? Get the money from them. It’s not fair that they’re sitting on $5 billion in unused cash!
Half of the state budget, being embezzled by former employees with the permission of former elected officials.
How will retired Connecticut commie bureaucrats pay for their BMWs, Continental vacations and braces for their brats when no money remains?
More like $27bln.
Don’t know if it’s still there, but there was a provision in one of the permutations of the tax bill to tax college/uni endowments that averaged over a certain amount per student.
"Pay no attention to that man behind the curtain ...
It will be interesting to see what happens in the next 15 to 30 years.
$6 trillion, an increase of $433 billion from the previous year.
https://www.alec.org/app/uploads/2017/12/2017-Unaccountable-and-Unaffordable-FINAL_DEC_WEB.pdf
I thought Illinois was the worst.
I thought Illinois was the worst.
its the regular people against the govt workers..sorry, its just the way it is...
Flying fish.
I assume the accrual will accelerate, so we're looking at adding a billion-plus every two years.
Are all these state-government drones going to end up homeless, or are they, somehow, going to drag the money out of the taxpayers?
then they’ll move to a state with no income tax....
Sorry, that was a TRILLION-plus. The mind boggles.
If the Libtards at Yale can’t be tasked with fixing New Haven, what good are they?
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