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Admittedly, the recent announcement on the state's payments into retired teachers' and state workers' pension funds isn't likely to get your heart pumping or have you high-fiving your best friends.
But the news that the state is making continued progress toward meeting its long-term obligations is incredibly important to every Connecticut resident.
First, the numbers: the retired state workers' fund increased by more than $2.3 billion in 2025 due to strong investment performance and additional contributions. The unfunded liability decreased from $19.2 billion to $17.6 billion. The funded ratio increased from 55.2% to 59.6%.
Meanwhile, the retired teachers' fund grew by more than $1.6 billion, with its funded ratio increasing to 63.7%.
In a vacuum, the ratios may seem low, but consider that in 2018, the ratios were 37% for state retirees and 52% for teachers. That's because, for decades, the state failed to make the full required annual contributions to its pension funds, leading to a huge, compounding debt. Since 2011, however, responsible budgets adopted by the state legislature have fully funded these contributions annually and implemented collaborative reforms with labor and management.
What this means is that Connecticut is continuing to keep its financial house in order. One significant effect of having a healthier pension outlook is Connecticut's credit ratings have improved (to Aa2, AA-, AA and AA+ by the various agencies), making it less expensive to borrow money due to lower interest rates.
Exciting? Maybe not. But definitely great news for every one of us.
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