State Senator David J. Cappiello, R-Danbury, today praised the state Bond Commission’s approval of $2 billion to help pay off the nearly $7 billion liability of the state’s Teachers’ Retirement Fund (TRF). He said that today’s action by the Bond Commission to use bond money will save the state millions of dollars knowing that the interest on the bonds in the long run would be less than the interest currently accumulating on the system’s unfunded liability.
“This is one of the most fiscally responsible acts we can make to reduce the unfunded liability costs of the TRF,” said Sen. Cappiello, who serves as ranking member of the legislature’s Appropriations Committee. “After years of under-funding this system, the state has put itself in a huge financial hole. The good news is that we have fully funded the TRF for four straight years, the bad news is prior to that the legislature under-funded it by 15% to 35% a year for well over a decade. By fully funding the TRF we have stopped the bleeding and with today’s approval we are taking direct aim at reducing the unfunded liability.”
Today’s action by the Bond Commission was set up under PA 07-186, which passed the General Assembly last session and a measure that Sen. Cappiello co-sponsored. He said that he was pleased that the item was advanced in a timely manner. “It might have taken some time, but I believe that people are beginning to see the severity of what under funding the system has done to the financial well being of our state,” said Sen. Cappiello. “I am encouraged that through these recent efforts the TRF will not only remain solvent but will be ale to assure all teachers that their pensions are in good financial standing.”
Sen. Cappiello has been one of the legislature’s leading advocates in the fight to fully fund the TRF and for over five years has sponsored legislation that would create a constitutional amendment that would require full funding of the pension fund.
“I think we’ve turned a corner and people are indeed making this a priority. I’ve said all along that if we didn’t do something that requires full funding of the TRF either teachers would lose their benefits or taxes will have to be raised significantly,” said Sen. Cappiello. “Today’s approval by the bond commission goes to the heart of what we are trying to accomplish and that is to make sure these benefits are protected. I commend Gov. M Jodi Rell and the Bond Commission for their efforts in approving this important financial measure.” |
