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Public retirement account debate gets heated

HARTFORD, Conn. – Should the government require employers to give their employees an option to invest in a retirement fund run by state officials?

Republican lawmakers say “no” while Democratic lawmakers are moving forward with a bill that mandates employers to offer their employees the option of participating in a state-run retirement trust fund. The employers are not required to contribute money to the fund, but they are mandated to offer it to their employees who would automatically be enrolled and given the option to opt-out.

In the past, it was an idea that seemed far enough out of reach that Republicans felt they could ignore it. However, this year it has the support of some powerful interest groups, including labor unions and the AARP.

Sen. Joe Markley (R-Southington) said he assumed the bill was going to fall by the wayside during the legislative process because of what he perceives as problems. But he said he’s recently become concerned “it may develop a momentum of its own.”

See the complete story at CT News Junkie.

Comments

4 responses to “Public retirement account debate gets heated”

  1. Oldtimer

    Teachers are in a state-run pension plan that seems to have operated pretty well for many years ? It even gives cost of living adjustments to retired teachers. It is run by the Ct Teachers retirement board in Hartford.

  2. Piberman

    Old timer: why shouldn’t all state employees be treated as generously as our teachers – finest in the land. Let’s include municipal employees too. And given CTs record in managing its own finances and under funding public pensions let’s encourage all private employees to invest with CT – a sure winner. One can only applaud our state legislators – always out in front with poor ideas.

  3. Oldtimer

    Piberman
    Should we assume you have done the research and know all about the teacher’s pension system, and how it is funded, or should we assume you are just opposed to any public employees earning (carefully selected word ) pensions ?

  4. the donut hole

    Old timer. It is underfunded. Grossly. And one of the worst in the country. http://www.state.ct.us/ott/aboutpension.htm
    .
    Do the math we only have $135,000 put away per employee. Guess what? They were promised a lot, lot more than that. I’ve seen actuarial assessments suggest that we are only funded to a 40% level. 80% is considered sound.

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