New plan to fix state's pensions - WFSB 3 Connecticut

New plan to fix state's pensions

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The governor announced there is an agreement to fix the state’s unfunded pensions. (WFSB file photo) The governor announced there is an agreement to fix the state’s unfunded pensions. (WFSB file photo)
This is projected annual payments for the State Employee Retirement System under the current system. (Governor's office) This is projected annual payments for the State Employee Retirement System under the current system. (Governor's office)
This is projected annual payments for the State Employee Retirement System under the new agreement. (Governor's office) This is projected annual payments for the State Employee Retirement System under the new agreement. (Governor's office)
HARTFORD, CT (WFSB) -

The governor announced there is an agreement to fix the state’s unfunded pensions.

Gov. Dannel Malloy and representatives from the State Employees Bargaining Agent Coalition said they reached an agreement "to modify the funding calculation and amortization schedule for the State Employee Retirement System (SERS) to help avoid the fiscal cliff the state would otherwise face in the coming years." 

Malloy said he was "very grateful to SEBAC leadership that we were able to reach this much-needed and forward-looking agreement." 

"It was incumbent upon us to reform this system before facing the fiscal crisis that could have resulted from $4 to $6-billion-dollar annual ARC payments,” Malloy said in a statement on Friday. “This agreement does not alter employee benefits or employee contributions in any way – it simply allows the state to fully fund its obligations at realistic amounts that will end with Connecticut resolving the unfunded liability and emerging with a system that is fully funded.  We are holding true to the ideal of improving the financial landscape for future generations.”

Republicans have been critical of the unprecedented plan. They said this is a stop gap measure and will cost tax payers more in the long term.  They said part of the solution must be concessions from state unions.  

Senate Republican Leader Len Fasano (R-North Haven) said it was "incomplete bailout of a pension system that’s completely out of control."

"Simply refinancing our debt is not the structural change we need to change the direction of our state. This package will add billions of dollars in new costs onto taxpayers beyond what is reflected in the governor’s summary. It’s not a solution and taxpayers deserve better,” Fasano said in a statement on Friday.

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