According to news reports, during a news conference on Monday, Malloy, proposed increasing the state’s annual contributions by about $123 million a year to about $1.059 billion, fully funding the pension system in 20 years. Connecticut’s pension fund has less than 48% of the money it needs, ranking it among the worst funds in the nation.
Malloy announced he will reveal his complete plan next month, when he addresses the General Assembly on February 8, and how he expects to cover that first payment. He said he doesn’t intend to raise taxes any further to cover the extra pension payment.
With his plan, Malloy hopes pension plan will be 80% funded by 2025. He contends his proposal will ultimately save the state $5.8 billion between now and 2032.
The proposal is subject to approval by Connecticut’s retirement commission, a coalition of the state’s public-employee unions and the Legislature.
The union coalition signaled it was supportive, while lawmaker reactions were mixed.