Gov. Malloy seeks restructuring of funds to teachers’ pensions

Gov. Dannel Malloy is looking to the state legislature to restructure the state”™s contributions to teachers’ pensions, saying that Connecticut “simply cannot afford annual payments of $4 billion to $6 billion” under the current arrangement.

Malloy”™s figures came from a 2014 report by the Center for Retirement Research at Boston College, which said that required contributions to the two teachers’ pension funds cost between $1 billion and $1.6 billion last year, and estimated that each could cost beyond $6 billion a year by the early 2030s.

“We must make smart reforms now to fix the system, and we can do it without curtailing benefits for teachers,” the governor said. “If we don”™t act, there will be no way to meet these obligations without hollowing out major state programs such as Medicaid and municipal aid. It”™s that simple.”

Malloy asked the General Assembly to prioritize the teachers”™ fund in the regular 2018 session, which begins Feb. 7.