Connecticut Is Chipping Away At Its $40B Pension Debt
The state of Connecticut is paying down more than $1.6 billion toward its long-term pension debt, which is the largest such payment in state history.
The money comes from an excess in the budget reserve fund, according to State Treasurer Shawn Wooden. It’s the second year in a row — and only the second time ever — the state has made a large payment on its pension debt for teachers and other state employees.
The state estimates it might be able to make another payment of more than a billion dollars next year.
Connecticut’s pension debt has ballooned for decades — to about $40 billion in 2020.
A Yankee Institute report found the state has the highest per capita taxpayer debt in the country.