State government today announced Connecticut will be paying down an extra nearly $900 million in debt to the Teachers’ Retirement System (TRS) on top of the regular pension contributions already appropriated for this fiscal year.
“Thanks to the partnership and advocacy of active and retired teachers, Connecticut is recognizing the need to secure teacher pensions is a top priority,” said CEA President Kate Dias. “For decades, the state underfunded teachers’ pensions, but thanks to CEA members’ advocacy, in recent years Connecticut has moved to bolster the TRS. Electing pro-education politicians to office can make a critical difference and provide safeguards for teacher retirement and can go a long way toward helping to address the teacher shortage crisis and recruiting and retaining teachers.”
Funds captured from volatile revenue sources are usually directed to the state’s Rainy Day Fund, but as that fund will soon meet its statutory cap, $272.8 million will be deposited in the TRS. Additionally, the fiscal year 2023 budget surplus, projected to be more than $500 million, will also be directed to the TRS after a year-end audit.
“Connecticut is making significant progress in addressing a decades-long underfunding of its pension system, saving taxpayers more than $600 million per year over the next 25 years,” said Governor Ned Lamont.
State Treasurer Erick Russell added, “It’s critical we maintain this momentum as we continue to shape a prosperous and strong economic future for our state.”
Senate President Martin M. Looney said, “This is superb news about Connecticut’s fiscal health. It may also open opportunities for us in the upcoming 2024 legislative session for some investments in social and educational needs that have been struggling since we’ve been in deficit.”
