Connecticut's Unfunded Pension Liability Increases To Worst Level In Years
State officials weren’t surprised Connecticut’s unfunded pension liability increased to its worst level in several years even after assuming the recent changes negotiated by Gov Dannel P. Malloy and the state labor unions.
In 2016, according to a report from Cavanaugh Macdonald Consulting LLC, only 35.5 percent of the the State Employees Retirement System was funded. It’s the first time in three decades the funding level of state employee pensions has fallen below 40 percent.
In 2014, it was funded at 41.5 percent and in 2012 it was funded at 42.3 percent, which still made it one of the worst funded pension systems in the country. Most experts agree that a fiscally sustainable system should be at least 80 percent funded.
Chris McClure, a spokesman for Malloy, said the report “validates the concerns we have been raising,” and “speaks to the necessity of the agreement we reached” last month with the labor unions.
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