Connecticut House Bill HB05191

Connecticut 2013 Regular Session

• Introduced: 1/11/13
• Refer: 1/11/13

Caption

An Act Concerning Contributions By State Employees To The State Employee Retirement System.

Impact

The implementation of HB 05191 would likely strengthen the financial standing of the State Employee Retirement System. With more funds being contributed, the pension system would be better equipped to meet its obligations to retirees. The bill serves as a proactive measure aimed at preventing future funding shortfalls which could arise due to demographic shifts or other economic factors impacting state revenue. Furthermore, it reflects a commitment to maintaining the integrity and reliability of retirement benefits for state workers.

Summary

House Bill 05191 aims to amend existing statutes regarding contributions by state employees to the State Employee Retirement System. The bill stipulates that all state employees must contribute an amount equivalent to six percent of their annual salaries towards their retirement benefits. This proposed change is part of a broader effort to secure sustainable funding for the state’s pension system, which is crucial for ensuring that employees receive their entitled retirement benefits upon leaving state employment or retiring.

Contention

While supporters of HB 05191 argue that it is a necessary step towards secure funding for the retirement system, there may be concerns from state employees regarding the mandatory nature of the contribution. Some may perceive a six percent deduction from their salaries as a significant burden, especially in times of economic strain. Discussions may revolve around the fairness of mandatory contributions and whether a sliding scale based on salary could be a more equitable approach. The balance between ensuring adequate retirement funding and protecting the financial interests of employees will likely be a pivotal point of contention as the bill progresses.