Pension trend: Splitting Pensions

Which state wants to split its pension system? Connecticut

Why split the pension?  A generous accounting system has left the pension 50% of the assets to meet liabilitiies.

Who thought of the split the pension idea? Center for Retirement Research

How would they split the pension? One pension for workers who started before 1984 & one pension for workers who started after 1984.

           The post-84 workers are the cheaper lot for a pension.

What are the pros/cons?

• The pre-1984 hires would be paid for directly out of the state’s annual budget. 
• The unfunded liabilities would be removed from the pension plan’s overall liabilities.
• CT State Treasurer thinks the idea is unconstitutional

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