Governor Dannel Malloy, in concert with Connecticut’s State Employee Unions, have joined forces to shift a major portion of Connecticut’s massive unfunded pension liability onto the backs of Connecticut’s children and those yet to come.
Call it an outrageous effort to kick the can so far down the road that no one will be around to remember what today’s elected officials have done to the economic well-being of those who aren’t yet voters and those who haven’t even shown up on this earth.
Worse yet, the action will probably be taken without a vote of the Connecticut General Assembly.
Warning that such a disastrous deal would be forthcoming, Wait, What? published two recent commentary pieces on the topic.
Don’t shift Connecticut’s unfunded liability problem onto our children. (Via CT Mirror 12-8-16)
But the warnings fell on deaf ears as Connecticut’s governor now seeks to duck significant responsibility for paying down Connecticut’s unfunded state employee pension fund.
As CT Mirror explains in a breaking story entitle, Malloy, unions strike deal to stretch out spiking CT pension costs;
Gov. Dannel P. Malloy announced a deal Friday with state employee unions that would allow Connecticut to dodge a fiscal iceberg by holding down annual pension costs otherwise set to spike over the next 16 years.
But to get that relief, Connecticut would shift at least $13.8 billion in estimated pension expenses owed before 2032 onto a future generation.
For now, though, the agreement shifts a heavy burden to a future generation on the argument that this one simply cannot afford to pay the full burden it faces.
The CT Mirror adds;
Under the new agreement, this year’s $1.6 billion annual cost essentially would remain flat next fiscal year. It originally was supposed to increase by about $84 million. But after that it would rise steadily until it reaches $2.2 billion in 2022.
It could remain there — depending on how pension investments fare — until 2032.
It would drop below $1.8 billion in 2033 and, from there, it would remain close to $1.7 billion through at least 2046.
The Malloy administration did not release an estimate Thursday of that lost investment opportunity. But a spokesman said the cost could be calculated in the coming weeks after an actuarial analysis of the new pension funding plan is completed.
This plan could be approved, under current legislative rules, without a vote from lawmakers, provided neither the House nor Senate vote to reject it within 30 days after the 2017 session begins on Jan. 4.
For more on this developing story go to: http://ctmirror.org/2016/12/09/malloy-unions-strike-deal-to-stretch-out-spiking-ct-pension-costs/