As CT Mirror reporter Keith Phaneuf writes, Connecticut’s public employee pension fund is a mess with a proposal pending to defer billions of dollars in contributions for at least 15 years. Municipal governments as well, including Bridgeport, are grappling with pension fund obligations stretching budgets. The issue will be a key component of the current session of the state legislature.
Connecticut’s pension fund suffers from inadequate savings policies that date back more than seven decades.
State government saved nothing between 1939 and 1971–and very little until the early 1980s–to cover pensions promised to state employees. Even after it began saving in earnest, it frequently contributed less than the full amount recommended between the early 1980s and 2011.
The cost of these past actions can be seen in the current budget and in future projections.
For example, 82 percent of this year’s $1.57 billion payment into the state employees’ pension fund, almost $1.3 billion, is to cover contributions or investment earnings not made or achieved in the past.
Full story here.