Fiscally Responsible Pension AgreementFebruary 2, 2017
On Thursday, we approved an agreement between the executive branch and the State Employee Bargaining Agent Coalition (SEBAC) that will help stabilize the state’s long term pension payment obligations.
The agreement has received support from the Connecticut Business & Industry Association, the Pew Charitable Trust, and the S&P and Moody’s credit rating services. The manageable, predictable payments in the agreement are preferred by these entities.
No money was put aside for pensions until 1971. After that, not enough money was put aside due to flawed assumptions and underpayment during tough economic years. A $6 billion balloon payment was coming, the result of changes made during the Rowland administration.
Read more about the pension issue HERE.