Teacher Pension Fund Liability Grows

HARTFORD (AP) — The state’s largest teachers union is calling on the legislature to draw up a long-term plan for fully funding the retirement fund.

The request comes after a new actuarial report showed the unfunded liability in the state pension account increased from $5.2 billion to $6.9 billion in the last two years.

“The news is a painful reminder of how big the problem is that confronts taxpayers and teachers alike,” said Phil Apruzzese, president of the Connecticut Education Association. “It’s time for legislative leaders and the state treasurer to sit down and hammer out the details of a long-term solution.”

More than 50,000 active teachers regularly contribute to the state pension plan through their paychecks. They do not participate in Social Security. The state, however, has not kept up with its share of the pension contributions.

About 24,000 teachers currently receive monthly pension checks.

Lawmakers attempted during the last legislative session to reduce the unfunded liability, using the budget surplus of nearly $660 million to supplement the fund.

State Treasurer Denise Nappier, who oversees the pension plan, said investment returns in the fund have been stellar, but that they alone cannot make up years of underfunding.

She has proposed issuing bonds to help cover the unfunded liability. The proposed bonding package would require the state to meet its annual pension obligations throughout the life of the package, which could cover 20 to 25 years.

“Discussions about that proposal with representatives of teachers and legislative leaders have been fruitful, and I am hopeful that we can build on the progress made during the last legislative session when the new General Assembly convenes in January,” Nappier said.