Description: The article is about state employee salaries. The author will present you with some findings that refer to the comparisons among the state employee pensions. It is to research issues and present data to inform educate generate discussion and promote action that enhances the state’s overall competitiveness for the past two years.
I’m Jim torgeson, president and CEO of UIL Holdings Corporation and chair of the Connecticut regional institute for the 21st century, more commonly referred to as the Institute.
The Institute is an independent nonpartisan group made up of both private and public sector leaders in the state who focus on ways in which Connecticut can expand its economic growth.
Our role is to research important issues and present data to inform educate generate discussion and promote action that enhances the state’s overall competitiveness for the past two years.
The Institute has tracked the state’s continuing battle to wrestle with the growing fiscal and economic crisis, the economic downturn has created both increased need for public services while sharply reducing state revenues the numbers in Connecticut are of increasing concern and can seriously impact all levels of government in the state with the state budget deficits projected to be 3.4 billion dollars in fiscal year 2011.
The Institute is reviewing and assessing areas of state spending and approaches to program delivery in informing policymakers about alternatives that hold the most potential for the state’s future.
Our latest report entitled pensions and other post-employment benefits, how does Connecticut compare is part of an evolving series entitled a framework for Connecticut’s fiscal future.
This third report focuses on the funding crisis for pensions and other post-employment benefits, that is facing many states, but is particularly burdensome in Connecticut since the 2008 financial meltdown.
The tension between the fiscal health nationwide of the state’s retirement programs and the need for all states to provide other services has been especially intense between 2008 and September 2010 in an effort to get costs under control 40 states took at least one action related to pension programs and 15 states took at least one action related to retiree medical programs pension.
OCAD liabilities are a fiscal tsunami headings for Connecticut increasingly towns and states are considering bankruptcy because of the huge liability and associated with pensions and o-chem Connecticut’s unfunded pension and medical liability is 41 point nine billion dollars.
This represents a liability of seventeen thousand four hundred eighty dollars for every voting-age citizen in Connecticut, our total annual required contribution to the pension and medical plan is three billion dollars per year.
This is 12% of Connecticut’s current annual state budget despite the relative magnitude of the problem for the state. Connecticut has lagged the other 49 states in terms of number and scale of actions taken to address its unfunded liability problem.
The recommendations in this report have been successfully implemented by other states and several deserve immediate consideration by the legislators such as increase the age at which employees are able to retire with full benefits, eliminate colas and longevity payments implement managed care and wellness programs change.
The average period in which benefits are calculated from three to five years and do not include overtime in the calculation as a CEO, I understand the importance of evaluating compensation packages in order to attract good workers to maintain a high level of service delivery.
Our findings consider that compensation should be comparable and that it’s important for the state to establish a policy of what appropriate compensation should be report acknowledges.
The need to design comprehensive compensation plans including both salaries and benefits in order to attract and retain employees qualified to deliver state and municipal services.
We hope you will review and give serious thought to our findings as well as our proposed solutions to the problems, currently facing our pension and benefit system in Connecticut as demonstrated by the Institute’s previous reports on Connecticut’s long-term care and prison systems and Studies on transportation and land use.
Our goal is to provide political leaders in the executive and legislative branches of government with tools to reinvent Connecticut’s approach to state government and its delivery of services.
The Institute plans to examine further areas of government including delivery of services through nonprofit agencies and regional approaches in the coming months. I invite you to be a partner with the Institute as we continue to provoke discussion and seek solutions for Kennan etiquettes fiscal crisis, thank you for providing us with the opportunity to present you with these findings today.