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Union Comments on Proposed State Employee Pension Fund Changes

Governor Malloy announced on Oct. 28 plans to overhaul the state's pension system and to reduce the state workforce by 500 employees via attrition.

The proposed changes to the pension system would basically split the current system into two parts: those workers who are covered under the Tier 1 retirement system (which closed 30 years ago); and those workers who are covered by Tiers 2, 2a and 3. 

The Governor said his plan is designed to deal with the state's large unfunded liability, virtually all of which is concentrated in Tier 1.

The State Employee Bargaining Agent Coalition (SEBAC) has said that any proposed changes to pension funding are a matter of collective bargaining and require union approval. Here's the full SEBAC statement:

“We have long pointed out that Connecticut has a well-funded and modest pension system for current employees, and that the real issue is a long standing debt largely caused by politicians who were in office long before we began collectively bargaining benefits in 1981.

“By law, no change in funding provisions can occur unless both sides agree that it is fair to public service workers and the public we serve. We welcome the opportunity to work with the governor, other constitutional officers and the General Assembly on the most responsible way to pay down that old debt and sustain a system that benefits Connecticut’s economy.”

Regarding attrition, it's Council 4's position that further staff reductions and other budget cuts will deprive Connecticut residents from getting the vital services they need and deserve. 

Public services are already strained, and public servants under attack, because the richest 1% in Connecticut pay state and local taxes at about half the rate the rest of us pay.That's the problem.


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