Connecticut would be first state to split pension liability - WFSB 3 Connecticut

Connecticut would be first state to split pension liability

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HARTFORD, CT (AP) -

Pension experts from Boston College say Connecticut would be the first state to split its pension system into two funds in order to more easily pay off the unfunded liability.

Democratic Gov. Dannel P. Malloy, whose administration hired his alma mater to review the state's public employee pension and teacher pension systems, wants to create one fund for so-called "Tier 1" retirees, people hired before 1984.

The second fund would include pensions for newer hires.

Alicia Munnell, director of the Center for Retirement Research at Boston College, praised Connecticut for considering something no other state has done. She said most states with unfunded liabilities have reneged on benefits for retirees.

Nearly $11 billion of the state employee pension system's $15 billion unfunded liability stems from people receiving "Tier 1" benefits.

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