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Yankee Institute says unfunded pension liability larger than reported

A new analysis of Connecticut’s unfunded pension liability by the conservative Yankee Institute claims that its unfunded liability is much higher than an actuary for the state has estimated.
A new analysis of Connecticut’s unfunded pension liability by the conservative Yankee Institute claims that its unfunded liability is much higher than an actuary for the state has estimated.

HARTFORD, Conn. – The analysis conducted by J. Scott Moody, CEO of State Budget Solutions, and Wendy Warcholik, of the Maine Heritage Policy Center, concluded that Connecticut’s unfunded pension liability is much greater than the $24.5 billion reported by the state. Moody and Warcholik found the “real unfunded pension liability is $76.8 billion, or 213 percent higher than current forecasts.”

The state estimated in 2012 that pension obligations for active and retired state employees, teachers, and judges totaled $48.2 billion.

“Yet, the state has only set aside $23.7 billion in assets to pay for these obligations,” Moody and Warcholik wrote in the report. “The pension system reports an unfunded liability of $24.5 billion. But our study shows that liability is more than three times that amount.”

The most recent actuarial valuation of the pension funds showed that as of June 30, 2012, the State Employees’ Retirement System was funded at 42.3 percent and the Teachers’ Retirement Fund was funded at 55.24 percent.

See the complete story at CT News Junkie.

 

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3 responses to “Yankee Institute says unfunded pension liability larger than reported”

  1. John Hamlin

    We need to start paying as we go. With no residual unfunded liabilities for pensions.

  2. Pibermanfmc

    Norwalk’s Legislators together with their colleagues have long ignored the unfunded pensions issue that dates back decades. Finance remains a difficult subject for our Legislators. Electing Legislators who have a financial background remains the only solution. Dream on.

  3. One and Done

    At this rate, the state will be the first to go bankrupt.

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