Currently, there is an estimated $5.5 billion in unfunded liabilities of the Teachers’ Retirement Fund that will accelerate to even staggeringly larger amount if the state continues to fail to meet its obligations. In addition to a proposal to devote current state surplus funds toward the account, which would only guarantee it be fully funded for the next fiscal year, there are two proposals to adopt a constitutional amendment to guarantee increased funding for the account.

State Senator David Cappiello (R-24), State Reps. Mary Ann Carson (R-108) and Janice Giegler (R-138) have signed onto a petition seeking the stronger of the two constitutional amendment proposals, which would guarantee the full funding of the account. The other proposal would effectively only guarantee it be 85 percent funded. If 75 percent of State House and Senate members support the resolution for this constitutional amendment, the issue can go before voters in the November elections.

“This is my fourth consecutive year sponsoring this legislation and what’s most troubling is that with each passing year the unfunded liability of the Teachers’ Retirement Fund (TRF) continues to grow significantly with each passing year.  Without question, this is the greatest financial challenge currently facing our state,” said Senator Cappiello. “If the TRF continues to be under-funded, teacher benefits will be severely reduced or we will face a budget crisis unlike we’ve ever seen before.  I don’t think the public would stand for either of these propositions.  Now is the time to enact this legislation to amend our state’s constitution because the state has continuously ignored the responsibility to adequately fund the teachers’ retirement fund.”

“The proposal to increase payments to the retirement fund by obligating a portion of current surplus only represents a short-term response to a looming structural problem. Rating agencies that grade Connecticut’s ability to pay its bills have expressed concerns about addressing long-term solutions with such stop-gap measures,” said Rep. Carson. “Likewise, the second proposal for a constitutional amendment falls short by not guaranteeing the full funding of the account. Hopefully, this will be the year we finally address this important issue.”

“The General Assembly cannot and should not jeopardize the financial well-being of our teachers, who through responsible fiscal planning, count on these dollars when they retire,” said Rep. Giegler. “Anything short of guaranteeing the full funding of this account shortchanges both teachers and Connecticut’s taxpayers, who will wind up paying more in the long run to cover the state’s obligation.”
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