AREAWIDE – On Wednesday, Feb. 1, State Representative Bob Siegrist (R-36th) urged fellow lawmakers to reject Governor Dannel P. Malloy’s pension funding agreement and instead advised the legislature to assess alternative means by which to address the state’s growing pension system problems.
House Republicans released data obtained from two actuarial analyses that show how additional steps can rein in the state’s unfunded pension liabilities. Both reports show how pairing pension finance changes with modifications to state employee benefits could increase the solvency of the state pension plan.
“We owe it to the people of Connecticut and to our children to come up with a better option. It is not fair for us to pass our problems onto future generations, we must be responsible and make difficult decisions to benefit to our state,” said Siegrist.
The governor’s pension proposal sought to tackle a mounting budget deficit by reducing short-term state pension contributions. In exchange for leveling payments through 2047, taxpayers would be responsible for an additional $11 billion over the duration of the deal compared to the structure of the current plan. Furthermore, the deal recommends a reduction in the investment rate of return from the current eight percent to 6.9 percent.
Many Republican lawmakers have suggested that making alterations to state employee pension benefits could reduce the unfunded liability by $200 million. If that sum were sent into the pension fund, actuaries estimate that the length of the new plan could be reduced by seven years and could decrease the additional liability from the projected $11 billion to $3 billion.
The State House voted 76-72 to ratify the deal on a nearly party-line vote, while the State Senate voted 18-17 with the Lt. Gov. Nancy Wyman casting the tie-breaking vote in favor of the deal.
The 36th House District is comprised of the towns of Chester, Deep River, Essex, and Haddam.