Connecticut’s pension funds are due to a $44.8 billion deficit, according to one study. Now, the fund is dealing with more problems after experiencing a negative return in the 2012 fiscal year.
According to Reuters, the state’s two pension funds for teachers and the other for state employees lost 0.9 percent of their $24 billion value. The year before was a record year, with a 21 percent return. The budgeted annual rate of return is more than 8 percent for both funds.
As of the fiscal year 2010—the most recent year included in a Pew Center on the States study—Connecticut’s pension was only 53 percent funded, leaving a liability of $44.8 billion. The only state with a worse percentage is Rhode Island.
Recent reforms enacted since Gov. Dannel P. Malloy have not been included in the time frame of the study, such as layoffs and reductions in benefits. According to the study, Malloy reportedly proposed a pension funding plan “calling for the state retirement system to reach 90 percent funding by 2025 and full funding by 2032."