Connecticut House Bill HB05335

Connecticut 2017 Regular Session

• Introduced: 1/10/17
• Refer: 1/10/17

Caption

An Act Limiting Cost-of-living Increases To State Employee Retirement Payments.

Impact

If enacted, this bill will notably impact the financial benefits received by state employees post-retirement. It implies that any future cost-of-living increases in their pension payments will not exceed the adjustments allowed under Social Security. This could lead to a stagnation in the purchasing power of retired state employees, particularly in economic climates where inflation rates outpace Social Security adjustments.

Summary

House Bill 05335 proposes amendments to the existing statutes governing state employee retirement payments by limiting the cost-of-living increases for these payments. Specifically, the bill aims to restrict increases to a rate that mirrors the annual cost-of-living adjustments determined for Social Security beneficiaries. This change signifies a move towards aligning state pension adjustments with the federally mandated adjustments, potentially affecting the financial stability of retired state employees.

Contention

The bill could provoke significant debate among lawmakers and stakeholders. Supporters might argue that the measure is a fiscally responsible move, potentially allowing for better allocation of state funds amidst budget constraints. However, critics are likely to raise concerns regarding the well-being of retired state employees who rely heavily on pension payments to sustain their livelihoods. The alignment with Social Security could be seen as a reduction in benefits compared to previous standards, leading to discussions about the adequacy of retirement security for state workers.