Final Report on Connecticut's State Employees Retirement System and Teachers' Retirement System

69 Pages Posted: 19 Nov 2015

See all articles by Jean-Pierre Aubry

Jean-Pierre Aubry

Boston College - Center for Retirement Research

Alicia Munnell

Boston College - Carroll School of Management

Date Written: November 2015

Abstract

The report’s key findings are:

• Connecticut’s pension systems for state employees and teachers face large unfunded liabilities, despite recent efforts by the State to fund.

• A significant source of the problem is the "legacy debt" built up before the State began pre-funding its pensions in the 1970s.

• Since pre-funding began, inadequate contributions from the State and low investment returns have added to the problem.

• One way to address the problem is through a two-step approach:

1. separately finance the legacy debt over multiple generations; and

2. fund ongoing benefits using a level-dollar amortization method over a reasonable rolling period; and reduce the long-term assumed return.

Suggested Citation

Aubry, Jean-Pierre and Munnell, Alicia, Final Report on Connecticut's State Employees Retirement System and Teachers' Retirement System (November 2015). Available at SSRN: https://ssrn.com/abstract=2692038 or http://dx.doi.org/10.2139/ssrn.2692038

Jean-Pierre Aubry (Contact Author)

Boston College - Center for Retirement Research ( email )

Fulton Hall 550
Chestnut Hill, MA 02467
United States

Alicia Munnell

Boston College - Carroll School of Management ( email )

140 Commonwealth Avenue
Chestnut Hill, MA 02467
United States

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