State Senator David J. Cappiello, R-Danbury, is proposing legislation that would amend the Connecticut state Constitution to provide full, actuarially sound funding for the state's portion of the Teachers' Retirement Fund (TRF). According to Sen. Cappiello, while state law requires the retirement system be funded at 100% of the actuarial cost, the legislature has met this requirement only once in the fund's history.

"Overriding the law that fully subsidizes the Teachers' Retirement Fund has become all too common," said Sen. Cappiello. "On average the TRF has been under-funded at a rate of approximately 15% per year, which over time has translated into a liability of nearly $5 billion. This is a staggering number that will continue to grow until this fiscally irresponsible practice is done away with."

Sen. Cappiello explained that it would currently take approximately $400 million per year (which includes debt payments on the unfunded liability) to fully fund the TRF. He pointed out that had the fund been subsidized properly over the years, the principle payments would amount to one quarter of that amount annually. He said he is hopeful that his measure, which mirrors legislation he proposed the past two sessions, will continue to gain support and eventual passage this year. While the bill did not even get a public hearing in 2003, Sen. Cappiello was able to move the legislation throughout the committee process last year where it eventually passed the Senate unanimously, however it died when the House of Representatives did not take it up for consideration.

Sen. Cappiello believes a change to the state Constitution is the only way of ensuring that the teachers' pension fund remains solvent and not siphoned off to balance the state budget. "We have a law on the books that has not been followed by the legislature or the executive branch over the years, so there is really no other avenue to take except that of changing the Constitution," said Sen. Cappiello. "Connecticut teachers are among the best in the country who provide an important role in our communities and they rely on the security of this fund for their retirement. It's hard for me to imagine why the TRF continues to be under-funded because either teacher benefits will be severely reduced or significant across-the-board tax increases will have to be enacted. For me, neither of those is an option."

Sen. Cappiello said that his legislation will head to the legislature's Appropriation's Committee where he currently serves as Ranking Member.