The retirement security of our teachers and the health of the state budget are both at risk because the teachers’ pension system is in such bad shape. The growing cost of this system is also stopping money from getting to classrooms and kids.
How bad is it? Gov. Malloy wants to shift one-third of the costs onto municipalities in order to help the state’s balance sheet. In response, teacher layoffs and/or property tax increases have been threatened across the state.
One thing is clear: taxpayers, teachers and students are all paying for past pension funding mistakes.
Our new study, The Connecticut Teachers’ Retirement System: Can It Be Stabilized?, explains the problems in the pension system and outlines possible reforms to stabilize the system and preserve it for future generations.
Author of the study Eric Halpern, a financial risk expert and actuary, said “these ballooning costs threaten to crowd out other state spending priorities – including spending on present educational needs – as current taxpayers shoulder financial burdens for promises made long ago.”
Connecticut needs to make reforms to the teacher pension system so our future teachers and students won’t suffer for the mistakes of the past.
Suzanne Bates is the Director of Policy and Legislative Outreach for the Yankee Institute for Public Policy.