OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sHB-6375
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.
Primary Analyst: AN 4/7/21
Contributing Analyst(s): JS
OFA Fiscal Note
State Impact:
Agency
Affected
Fund-Effect FY 21 $ FY 22 $ FY 23$
Resources of
the General
Fund
GF - Cost Approximately
$75 Million
Approximately
$100.2 Million
Approximately
$104.1 Million
Higher
Education
Constituent
Units
Various -
Savings
Approximately
$75 Million
Approximately
$100.2 Million
Approximately
$104.1 Million
Note: GF=General Fund; Various=Various
Municipal Impact: None
Explanation
The bill results in a cost to the General Fund of approximately $75
million in FY 21, $100.2 million in FY 22, and $104.1 million in FY 23,
and equivalent aggregate savings to the higher education constituent
units. The bill requires that beginning in FY 21, the General Fund
defrays the cost of the State Employees Retirement System (SERS)
unfunded accrued liability (UAL) attributed to non-General Fund
supported positions at the higher education constituent units. The
table below describes the estimated savings to each institution and
associated cost to the General Fund:
2021HB-06375-R000301-FN.docx Page 2 of 2
$ Millions
Institution
FY 21
Est.
FY 22
Est.
FY 23
Est.
UCONN Health 30.2 31.7 33
UCONN - Storrs & Reg. 25.6 26.9 27.9
BOR - State Universities 18.7 19.6 20.4
BOR - Community
Colleges* 0 21.3 22.1
BOR - Charter Oak 0.6 0.7 0.7
TOTAL 75.0 100.2 104.1
*The Community Colleges receive $20.35 million in FY 21
(only) to defray the entire estimated non-General Fund
supported SERS UAL cost.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to the amount of the SERS unfunded
accrued liability attributed to non-General Fund supported positions at
the higher education constituent units, as affected by an annual SERS
actuarial valuation and the amount of non-General Fund personnel
costs at each constituent unit.