Connecticut officials have announced a deal that would reform the state-run pension plan for municipal employees.
“We have reached a deal that over the course of the next 30 years would reduce the pension contribution liability of 107 of our towns by $843 million,” Comptroller Sean Scanlon said.
Scanlon brokered the deal on the reforms to the Connecticut Municipal Employee Retirement System following six weeks of negotiations between labor and municipal leaders.
The deal would save cities and towns money over the next 30 years. The reforms would also help stabilize the rising cost of the Connecticut Municipal Employee Retirement System, according to the comptroller.
“For years our towns and cities all across Connecticut have been seeing astronomical increases to the pension costs that they have in their communities. And we are beginning to end that today,” Scanlon said.
The agreement aligns the yearly cost of living adjustments with current industry practice and re-amortizes the unfunded liability from 17 to 25 years. Officials say that would immediately save municipalities about $32 million in fiscal year 2024, and $843 million over the next three decades.
The state-run pension plan covers police officers, firefighters, board of education and public works employees in 107 Connecticut cities and towns.
