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Connecticut Governor Seeks Pension Givebacks

February 22, 2019

By Steve Wishnia and Neal Tepel

HARTFORD, Conn.—Gov. Ned Lamont announced Feb. 19 that his budget for the 2019-2020 fiscal year will propose reducing pensions for future retired state employees—but state workers’ unions, whose approval would be needed, immediately objected. “While I love history and tradition, there is no reason to continue with bad or outdated policies that are no longer working for the people of this state,” Lamont said. His proposal would limit cost-of-living increases for future retirees’ benefits to 1% a year if the state pension fund’s returns on investments fall below 6.9%, estimating that would save up to $131 million. “To be clear: we will not be part of asking for still more sacrifices from state employees, who have already given so much for the people they serve,” the State Employees Bargaining Agent Coalition quickly responded. The state’s budget deficit for the coming year has been projected at $1.5 billion, but public employee unions agreed to concessions three times in the past decade, accepting a wage freeze and health and pension givebacks in 2009, 2011, and 2017. Lamont also proposed having local governments pay 15% of contributions to the state’s pension fund for teachers.  Read more

February 22, 2019

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