State Senator David J. Cappiello's, R-Danbury, 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) was heard before the legislature's Appropriations Committee today. According to Sen. Cappiello, support is growing for the initiative that would prohibit the legislature from overriding the law that fully funds the TRF. He said that 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.

"People are beginning to realize that if we continue overriding this law the unfunded liability could very well bankrupt the Fund. As it stands now the TRF, which has been under-funded at a rate of approximately 15% per year over a significant amount of time, has resulted 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," said Sen. Cappiello.

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.