Connecticut House Republican Leader Themis Klarides says an audit of the state employee pension funds proves the state needs to reduce benefits.
The audit of the State Employee Retirement System by Cavanaugh MacDonald Consulting LLC shows the funding level is only at 35.5 percent of what it should be to live up to the state’s obligation. The funding level has dropped from 41.5 percent and the new rate is among the worst of any states in the USA, according to Klarides.
Klarides is calling for worker benefits to be curbed and for lawmakers to consider a Republican proposal that has been on the table for years including:
- reform of the overtime payment guidelines used by state workers
- creation of a defined contributiion system for new state employees
“The valuation rate of state employee pensions has hit an all-time low and the unfunded liability grows every day. This is not a question of the state putting more money into the account, we must overhaul the entire system before it goes broke,” Klarides said in a statement.