Please
note that if you to be added to FCTO’s email list,
please write to fctopresident@aol.com
Public Retirement Plan for
Connecticut Private Sector
Employees
Connecticut taxpayers are already burdened
with high state deficits, debt, and underfunded state employee pensions and
retiree healthcare costs.
Governor Malloy and Connecticut State
Legislators now plan to implement a Public Retirement Plan for Private Sector
Workers.
The State Comptroller and Treasurer ask
that you submit your written comments on the proposal by November
3. A public hearing will
follow on November 19. Their press release follows although gives
few details.
Several have commented on the issue of
Public Retirement Plans for Private Sector Workers. We have provided their comments below along
with reports on the state of our state.
In lieu of the State’s proposal, the Federation suggests
reducing state taxes, reforming collective bargaining laws, and renegotiating
state employee pension contracts. This
would allow all Connecticut
residents to save for retirement as our taxes now supports exorbitant pensions
for some state employees of well over $100,000 and up to $283,273.
To see what you are paying for state employee pensions click
on Pension Payments - Connecticut
Transparency Website. Then click Search once
and Total Pension Payments twice. This will
take you from the highest to the lowest pensions being paid.
Let us know your thoughts on this speculative proposal. Can taxpayers afford the risks and any costs
associated with a Public Retirement Plan for Connecticut Private Sector
Employees? Write to fctopresident@aol.com.
****************
Comptroller
Lembo, Treasurer Nappier
Request Public ... Comment on Public Retirement Plan for
Private Sector Employees
Written public comments are due Nov. 3, and will be followed
by a public hearing on Nov. 19 at a location to be determined at which the public is
invited to participate.
http://insurancenewsnet.com/oarticle/2014/10/11/comptroller-lembo-treasurer-nappier-request-public-comment-on-public-retirement-a-566279.html#.VDtk8xbIcjI
October 13, 2014
From: The Federation of
Connecticut Taxpayer Organizations
Contact: Susan Kniep, President
Website:
http://ctact.org/
Email: fctopresident@aol.com
Telephone:
860-841-8032
The following are
what some are saying about
State-Run
Pensions for Private-Sector Employees Proposed
Securities Industry and Financial Markets
Association (SIFMA)
State Run Retirement
Plan Proposals
Resource Center
Read the entire article at …… http://www.sifma.org/issues/savings-and-retirement/state-run-retirement-plan-proposals/overview/
EXCERPTS: SIFMA is
committed to increasing retirement plan coverage for hard-working Americans.
However, the creation of a state-run retirement plan for private-sector
employees is not the most effective way to do so. SIFMA sees three primary
issues with such a plan:
First, it would burden already fiscally-strained states with
additional costs and liability to operate the programs, which are already
currently available in the private market.
Second, a state-run retirement plan would create conflicts
between federal laws governing retirement plans and laws enacted by individual
states. Different states would likely have different rules governing operation,
accumulation and distributions, which SIFMA believes could result in confusion
among employers and employees. SIFMA also has concerns that employees who save
in a state plan will not have the same rights and protections that are provided
under the federal regime.
Finally, state-run retirement plans would have a number of
implications under the Employee Retirement Income Security Act of 1974 (ERSIA)
and the Internal Revenue Code. Currently there is no direct guidance from the
Department of Labor (DOL) or the courts on how a state-run plan would operate
under ERISA. In the case of a state plan created for private sector employees,
ERISA would apply. In order for a plan to be a “governmental plan” exempt from
ERISA, it must be established or maintained by a government entity for its
employees. A plan for non-governmental employees would not qualify.
http://www.sifma.org/issues/savings-and-retirement/state-run-retirement-plan-proposals/overview/
************************
Potential
Mandate for CT Businesses: State Run Retirement ...Plans
Dougherty Insurance
EXCERPT: This
bill lacks credibility and public confidence in light of the severely
underfunded state pension funds. Both the state Teachers’
Pension fund and the State Employees Pension Fund are underfunded in
the combined amount of $25 BILLION. That comes out to a debt of
about $20,000 per person for each resident of CT.
Read entire article at ….. http://www.doughertyinsurance.com/2014/03/potential-mandate-for-ct-businesses-state-run-retirement-plans/
************************
Reasons
to be Wary of State-Run Retirement Plans - Forbes
Jeffrey Brown Contributor
EXCERPT: Moreover, a
larger government role could bring unwelcome government intrusion in capital
markets, where more than $10 trillion of DC plan assets are invested. It is not
hard to imagine politicians pressuring these funds to over- or under invest in
particular geographies, industries or causes. Such a large-scale
misallocation of investment funds could harm not only the financial market returns
to participants, but overall economic performance.
Read article at …… http://www.forbes.com/sites/jeffreybrown/2014/02/10/state-run-retirement-plans/
************************
State
Should Be Businesses' Partner, Not Competitor - CBIA
By CBIA
Proposed mandate adds to employer burdens,
threatens jobs
Read entire article at ….. http://www5.cbia.com/cbianews/article/state-should-be-businesses-partner-not-competitor/
Excerpt: Senate Bill 249 would put the state in competition with Connecticut’s financial
services industry by requiring any business with five or more full- or
part-time employees that does not offer workers an IRA, 401(k), or pension plan
to facilitate employee participation in a state-run retirement plan.
Excerpt: What is clear, however, is that SB 249 would add to
Connecticut’s reputation as a difficult place to do business—a reputation
reinforced by the state’s poor showing in many well-publicized national
business climate rankings. Rather than help improve our position in such
rankings to attract more private-sector investment, SB 249 sends the message
that not only is Connecticut
already a tough place to operate a business—but if you locate here, the state
may decide to compete with you.
http://www5.cbia.com/cbianews/article/state-should-be-businesses-partner-not-competitor/
*************
Crisis Grows in Public Pensions (column - Steve Williams /
Victorville Daily Press)
Federal Judge: Public Pensions Not as Protected as You Think (Ben VanMetre / Madison-St. Clair Record)
*************
State
Budget Solutions' Fourth Annual State Debt Report ...
by Cory Eucalitto
| January 8, 2014
EXCERPTS: State
Budget Solutions' (SBS) fourth annual State Debt Study reveals that state
governments face a combined $5.1 trillion in debt. This total equals roughly
$16,178 per capita, or 33 percent of annual gross state product. Another
telling way to view the problem - state debt is equal to 469% of all fiscal
year state general and other fund expenditures.
EXCERPTS: The table
below shows each state's total debt, along with details breaking down that debt
into its four contributing components. Per capita details and state rankings
can be found in tabs along the bottom. Click here to view the
spreadsheet in a separate page.
|
Total State Debt (1)
|
Market Valued
Unfunded Public Pension Liability (2)
|
Outstanding Debt
(3)
|
Unfunded OPEB
Liability (4)
|
|
|
|
|
|
Connecticut
|
$112,372,072
|
$74,412,395
|
$19,481,955
|
$17,904,000
|
|
|
|
|
|
See how all states rank at …..
http://www.statebudgetsolutions.org/publications/detail/state-budget-solutions-fourth-annual-state-debt-report
*************
Retirement
Plans - New Actuary Tables May Be “Nail in the ..
Coffin” for Defined Benefit (DB) Plans
EXCERPT: The measured
value of liabilities for most defined benefit (DB) plans will increase between
3% and 8% with the adoption of new mortality tables, says a report from
Wilshire Consulting.
The tables, released by the Society of Actuaries in exposure
draft form in February, reflect an increase in the life expectancy of
Americans, resulting in increased pension plan liability values and liability
duration
Continue reading at ….. http://www.limra.com/Secure_Retirement_Institute/News_Center/Retirement_Industry_Report/Retirement_Plans_-_New_Actuary_Tables_May_Be_%E2%80%9CNail_in_the_Coffin%E2%80%9D_for_DB_Plans.aspx
*************
Study Says Kids in Connecticut
Are Born Broke Due to Billions in Unfunded Pension and Heathcare
Promises (J. Scott Moody & Wendy P. Warcholik /
Yankee
READ THE STUDY: 'Born Broke in
Connecticut' (Yankee Institute)
*************
Connecticut's
Fiscal Tsunami (op-ed - Tim Herbst / CT Post)
Published 5:57 pm, Thursday, September
11, 2014
Everywhere I travel in Connecticut,
the message from our citizens is consistent and clear: Connecticut is borrowing too much, spending
too much and taxing too much. The fiscal future of our state is on the
precipice of collapse. Elected leaders in Hartford
continue to bury their heads in the sand when it comes to understanding and
articulating the level of financial commitments and debt that Connecticut is accumulating. I made the
decision to run for state treasurer because I cannot sit back and watch the Hartford bureaucrats kick
the proverbial can at the same time they spend what our taxpayers cannot
afford. Denise Nappier has been
our State Treasurer for the last 16 years. In virtually every category that
ranks Connecticut's
fiscal health, we are dead last.
Continue reading at ….. http://www.ctpost.com/opinion/article/Connecticut-s-fiscal-tsunami-5748754.php
Nonpartisan Analysts Predict 2.8 Billion Dollar Budget Deficit
for 2016 - 2017
WalletHub Report: Connecticut Ranks
As 4th Worst State To ...
To Be A Taxpayer March,
2014
Nutmeggers say higher taxes, cost of
living forcing them to ... rethink
living in Connecticut
Unfunded Retiree Healthcare Liabilities Grew By $3.3 ... Billion From 2011-2013
How Did Rich Connecticut Morph Into One Of America's Worst Performing Economies?
Connecticut's struggle with profits
Connecticut's Unfunded Pension Liabilities: A clear and ... present danger
Analysts: Malloy’s budget for Connecticut never was balanced