In This Together CT

With only days left in the 2010 election, Governor M. Jodi Rell’s Commission on the State’s Post-Employment Benefits (OPEB) issued their final report on the issue of post-employment benefit plans. The group was tasked with completing its work this summer but Chairman Michael Cicchetti, who is also the Governor’s second in command at the Office of Policy and Management, released the recommendations at the closing moments of a political season where State employee benefits have become a main topic of debate.

Mr. Cicchetti’s letter to the governor accompanying the report states that it contains a “series of balanced and responsible strategies” for dealing with the state’s unfunded liabilities. But the State Employee Bargaining Agent Coalition (SEBAC) representative appointed to the Commission criticized the group’s failure to set priorities and for releasing an unfinished product in order to move a political agenda at election time.

“The issues of pensions and retiree healthcare benefits are a serious matter for State employees. They deserve more consideration than a cursory review and expedited release for political purposes,” said Sal Luciano, member of the Commission and Executive Director of Council 4 AFSCME. “My deep frustration comes from the squandering of a unique opportunity to find a real solution to the state’s unfunded liabilities.”

Partisan appointees, as mandated by Governor Rell’s Executive Order that created it, dominated the Commission. The recommendations contained in the final report include funding strategies and calls for cuts to retiree healthcare benefits and pensions. Representatives of the State Comptroller and Treasurer’s offices also disagreed with many of the recommendations put forth in the Commission’s report, arguing that its approach would cause further economic harm to the state.

This contention is supported by two recent reports that demonstrate that public pensions weather the economic storm much more successfully than the 401(k) models suggested in the OPEB document. One study by the Center for Retirement Research at Boston College found that states would be able to support their public pension programs with modest increases in contributions — a solution supported by SEBAC and State Comptroller Nancy Wyman for some time.

Another report, the National Association of State Retirement Administrators’ Public Fund Survey, found that public plans have been attentive to funding their pensions in recent years.

The state’s currently active pension plans, known as “Tier II” and “Tier IIa” are properly funded and cost less than a 401(k). The “Tier I Plan,” which has been closed to new participants for over 20 years, was never adequately funded. For well over two decades, Connecticut has been quite responsible.

The real issue for all Connecticut citizens, whether they are State employees or not, is retirement security. Many people in this state simply don’t have real retirement security. As union members, we believe it is important for all workers to know they can count on a decent living in their senior years.  Connecticut’s next administration will need to do better for every resident of the state to ensure that their pensions and healthcare aren’t taken away.

Center for Retirement Research at Boston College – “The Impact of Public Pensions on State and Local Budgets”

National Association of State Retirement Administrators – “Public Fund Survey”

This entry was posted on Thursday, October 28th, 2010 at 5:00 pm and is filed under Campaign News. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.