After years of underfunding, the long-term retirement costs of Connecticut’s state employees are a cause for “serious concerns,” according to a new study from the Pew Center on the States.
As of the fiscal year 2010 – the most recent year included in the study – Connecticut’s pension was only 53 percent funded, leaving a liability of $44.8 billion. The only state with a worse percentage is Rhode Island. Neighboring New York is 94 percent funded, while Massachusetts is 71 percent funded.
"Many states have not held up their end of the bargain when they should have been paying for the promises they made,” stated the full report (PDF attached).
Health care for retirees was completely unfunded, with $26.7 billion owed. The average state has funded 8 percent of its health care, yet 17 states paid for zero of amount owed.
Recent reforms enacted since Gov. Dannel P. Malloy have not been included in the time frame of the study, such as layoffs and reductions in benefits. According to the study, Malloy reportedly proposed a pension funding plan “calling for the state retirement system to reach 90 percent funding by 2025 and full funding by 2032."