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Malloy: Kick Teachers’ Pension Can Down the Road Like We Did for State Employees

December 27, 2017 By Staff
Malloy: Kick Teachers’ Pension Can Down the Road Like We Did for State Employees

The governor is going into the new year, his last in office, proposing that Connecticut kick its teachers' pension obligations down the road, just like he did last year with state employees' pensions.

With a new report from the state’s treasurer on unfunded liabilities in the state’s teachers’ pensions system, Gov. Dan Malloy (D-Conn.) is re-asking state legislators to approve his plan to kick that pensions can down the road before he leaves office.

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In a statement released Tuesday, Malloy said:

“Changes my administration put forward last session would have made this system more affordable, more stable, and more able to absorb changes in the market. I will continue to advocate for these commonsense reforms in 2018 and look forward to working with the Treasurer and leaders in the General Assembly to lower all of Connecticut’s unfunded liabilities.”

Those changes, according to Malloy’s release? “[A]mortization and refinancing changes to the Teachers’ Retirement System in his FY18-FY19 budget proposal, which included extending the amortization period.”

This is what Malloy did with state employees in December 2016: “Extending the amortization period for the balance of the unfunded liability in a new 30-year period. By extending the date for a portion of the existing funding shortfall from 2032 to 2046, responsibility for repaying this debt (which was accumulated over decades) is not disproportionately borne by only the next 14 years of tax-payers.”

Translation: Malloy left taxpayers in the years 2033 through 2046 – 15 to 28 years after he leaves office – stuck with the bill for state employees’ pensions, and he wants to do something similar with teachers’ pensions.

Of course, the state has to pay off its debts, and not all of these can be traced to Malloy. But the extended amortization is just one more indicator of how Malloy not only failed to effectively take on Connecticut’s pension liabilities during his two terms; he worked to the benefit of state employees’ and teachers’ unions.

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