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) has passed the legislature’s Appropriation’s Committee.  On a 44-7 vote held late Monday evening, the Committee gave its approval to the measure that would constitutionally prohibit the legislature from overriding the law that requires full funding of the state’s teacher pension fund. 

“We’ve been down this road before but I think what makes this year different is the fact that the unfunded liability to the TRF is getting to a point of no return,” said Sen. Cappiello.  “After all, we are talking about a $5.3 billion shortfall to the pension fund and as long as we continue to ignore our obligation to fully fund the system, the closer it comes to bankruptcy.  A constitutional amendment would ensure that this never happens.”    

Sen. Cappiello explained that while state law requires the retirement system to be funded at 100% of the actuarial cost, the legislature has met this requirement only once in the fund’s history. He said that over a nearly 30 year period the TRF has been under funded by a rate of approximately 15% per year resulting in the enormous shortfall.  He went on to say that it would currently take over $400 million per year (which includes debt payments on the unfunded liability) to fully fund the TRF.  Had the fund been subsidized properly over the years, the principle payments would amount to one quarter of that amount annually.

Sen. Cappiello said he is hopeful that his measure that mirrors legislation he proposed the past three sessions (including an amendment offered two years ago that unanimously passed the Senate but was never taken up in the House of Representatives), will continue to gain support and eventual passage this year.   “There’s no reason for this legislation not to pass this year, there are over 70 co-sponsors of the legislation made up of members from both parties.  I firmly believe that if this bill is brought up in the House and Senate it will pass overwhelmingly and then it will then be in the hands of state voters,” said Sen. Cappiello.

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. “Fully funding the TRF is our obligation, there’s no other way of putting it.  We are not talking about a new line item in the budget we are talking about money we owe for the retirement benefits of our teachers,” said Sen. Cappiello.  “If we don’t do something that requires full funding of the TRF either they will lose their benefits or taxes will have to be raised significantly.  A constitutional amendment makes certain that neither situation occurs.”

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