Connecticut House Bill HB05115

Connecticut 2020 Regular Session

• Introduced: 2/13/20
• Refer: 2/13/20
• Report Pass: 3/10/20

Caption

An Act Concerning The Unfunded Pension Liability Portion Of The Fringe Benefit Cost For Employees Of The Constituent Units Of The State System Of Higher Education.

Impact

The introduction of HB 05115 is expected to have significant implications for the financial management of higher education institutions within the state. By specifying that the funding for the unfunded pension liability will be sourced from other appropriated resources, the bill seeks to relieve pressure on the General Fund finances. The expected outcome is a more stable funding environment for fringe benefits, enabling institutions to effectively manage employee compensation and retirement obligations without relying solely on standard state funds.

Summary

House Bill 05115, titled 'An Act Concerning The Unfunded Pension Liability Portion Of The Fringe Benefit Cost For Employees Of The Constituent Units Of The State System Of Higher Education', aims to address the funding of unfunded pension liabilities associated with the fringe benefits of employees in the state higher education system. This bill mandates that the state Comptroller will fund the unfunded pension liability portion of fringe benefit costs for employees compensated through resources that are not derived from the General Fund.

Contention

While the bill ostensibly aims to support higher education employees, there could be contention regarding which resources will be appropriated to cover these pension liabilities. Stakeholders may debate the appropriateness of diverting funds from other essential programs or initiatives to meet these pension obligations. Furthermore, the concern for transparency in the allocation of the new funding sources and the long-term sustainability of such a financial approach may be raised in public discussions about the bill. As this bill progresses, legislative and community discussions will likely explore these complexities and their implications for the state’s fiscal health.