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Public Retirement Plan for

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. 

 

 

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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
Web
site: 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/

 

 

 

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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/

 

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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/

 

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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/

 

 

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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)

 

 

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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

 

 

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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

 

 

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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)

 

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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

 

 

 

CONGRATULATIONS TO The Day of New London and its Excellent Reporting on State Employee Pensions

Taxpayers take the time to review the pensions you are paying and much more info as CT Taxpayers are TAXED TO THE MAX. 
The Federation of - CT Taxpayer Org - Jan 2014

 

 

 

 

 

Nonpartisan Analysts Predict 2.8 Billion Dollar Budget Deficit for 2016 - 2017

CT State Employee Retirement System Dramatically Underfunded as it had 9.7 billion dollars in assets and 23 billion dollars in liabilities 
The Federation of - CT Taxpayer Organizations - June 2 2014

 

 

 

 

STATE DEFICITS... HIGH SIX FIGURE STATE PENSIONS... HIGH SIX AND SEVEN FIGURE STATE SALARIES

HIGH STATE AND LOCAL PROPERTY TAXES...BROKE TAXPAYERS. 
The Federation of - CT Taxpayer Org - Dec 30,2013

 

 

 

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