Connecticut Senate Bill SJ00012

Connecticut 2019 Regular Session

• Introduced: 1/23/19
• Refer: 1/23/19

Caption

Resolution Proposing An Amendment To The Connecticut Constitution To Require The Funding And Establishment Of Shared-risk Pension Plans For State Employees And Teachers.

Impact

If passed, SJ00012 would have significant implications for state financial management and budgeting. The resolution requires the state to ensure a consistent and reliable funding pathway for pension obligations. By legislating the establishment of shared-risk pension plans, the state can allocate resources more effectively, potentially leading to reduced long-term pension costs. This change also aims to increase transparency in how funds are managed and allocated, addressing concerns over pension funding shortfalls and creating a more secure retirement framework for public employees.

Summary

SJ00012, proposed by Senator Bergstein, aims to amend the Connecticut Constitution to establish shared-risk pension plans for state employees and teachers. This resolution proposes that the General Assembly must fully appropriate the required employer contributions for these pension plans each fiscal year. The intention behind this amendment is to mitigate the rising costs associated with pension liabilities by implementing a shared-risk model, thereby offering a more sustainable financial mechanism for managing employee retirement benefits.

Contention

Although proponents argue that shared-risk pension plans will provide a more equitable method of pension funding, there may be contention regarding the effectiveness and efficiency of such plans compared to traditional pension systems. Critics could raise concerns over the adequacy of guarantees provided in these shared-risk structures, as well as their long-term viability amidst changing economic environments. Additionally, the legislative requirement for full appropriations each year may pose challenges in budgetary planning and could face opposition from lawmakers prioritizing other funding needs.