[JayCT]

Originally Posted by BobNJ1960

We need to convert to Defined Contributions, which require no state funding after the paydate..ever.

Just as the private sector's retirement is funded.

Not simply require a teeny weeny employee pension contribution.

Analysts rate Ct as 3rd in line likely to default, Il and NJ first.

https://insight.kellogg.northwestern...sions_in_peril

Nice article but it does not mention Connecticut or New Jersey for that matter. It mentions Ohio, Illinois, Rhode Island and Colorado. It says nothing about default of pension funds. It talks about the number of years of tax revenue needed to meet pension obligations but again nothing about default. And also note that this is approaching 8 years old so it is not necessarily current. Just saying, Jay

[BobNJ1960]

Originally Posted by JayCT

Nice article but it does not mention Connecticut or New Jersey for that matter. It mentions Ohio, Illinois, Rhode Island and Colorado. It says nothing about default of pension funds. It talks about the number of years of tax revenue needed to meet pension obligations but again nothing about default. And also note that this is approaching 8 years old so it is not necessarily current. Just saying, Jay

2nd link was on Ct.

[Lincolnian]

Originally Posted by BobNJ1960

The time bomb is still ticking.

Largely due to Malloy not seizing a golden opportunity, when he issued 6k layoffs saying "Union turned down my LAST, final offer", then pulled the pink slips away.

That RIF change would have largely solved legacy cost problems, for generations to come.

What is your solution to teachers with 25 years that paid into their pension plan in lieu of Social Security and in many cases were given very limited options for contributing in quality tax-deferred contribution plans?

Changes can be be discussed and negotiated for future employees or teachers not vested but those already retired or near retirement do not have many options. There were no contributions by the municipalities that employed them to either SS or 401k match (or 403b/457).

Additionally, teachers do not qualify for a pension or SS if they leave before they vest in the pension plan. The vesting requirement is 10 years. If you leave before 10 years your money will only be credited interest for 10 years. For a young teacher who leaves this is a rotten deal. Either take out your money and pay taxes on it or let it sit for decades with only interest on it for 10 year after you leave. In any case up to 9 years of earnings count for nothing toward any retirement benefit. This group may be in favor of a solution worked out between the state and SS that matches back contributions and credits service.

Any discussion of eliminating benefits for existing retirees or those near retirement does not help find longterm workable solutions.

[BobNJ1960]

Originally Posted by Lincolnian

What is your solution to teachers with 25 years that paid into their pension plan in lieu of Social Security and in many cases were given very limited options for contributing in quality tax-deferred contribution plans?

Changes can be be discussed and negotiated for future employees or teachers not vested but those already retired or near retirement do not have many options. There were no contributions by the municipalities that employed them to either SS or 401k match (or 403b/457).

.

Capped at that vesting level, more than adequate.

Legally no one can deny what was vested.

Convert to 401k past that point with employer match at normal private sector levels, about 4-5% employer max.

[Stepfordct]

Originally Posted by JayCT

Nice article but it does not mention Connecticut or New Jersey for that matter. It mentions Ohio, Illinois, Rhode Island and Colorado. It says nothing about default of pension funds. It talks about the number of years of tax revenue needed to meet pension obligations but again nothing about default. And also note that this is approaching 8 years old so it is not necessarily current. Just saying, Jay

Clearly CT has not improved in the last 8 years, and has more challenges than ever before.

[GeoffD]

Originally Posted by BobNJ1960

Capped at that vesting level, more than adequate.

Legally no one can deny what was vested.

Convert to 401k past that point with employer match at normal private sector levels, about 4-5% employer max.

The problem is the whole Social Security opt-out thing. If you pull the rug out from the pension, you don't get the 35 years of Social Security contributions. My retirement math mostly looks good because I have 35 years of max Social Security contributions. If I defer to age 70, that's $44,500 per year in 2018 dollars that is COLA-protected for life. I structured my life so I can live on that comfortably. My 401(k) and IRA distributions are 100% discretionary spending money.

If course, my math doesn't presume the unreasonable early retirement deals state workers & teachers get. I'm handcuffed until I'm 65 and Medicare-eligible and I wouldn't want to risk ACA being there. Using state & local tax dollars to fund retiree health care before age 65 is a deal none of the rest of us get.

[BobNJ1960]

Originally Posted by GeoffD

The problem is the whole Social Security opt-out thing. If you pull the rug out from the pension, you don't get the 35 years of Social Security contributions. My retirement math mostly looks good because I have 35 years of max Social Security contributions. If I defer to age 70, that's $44,500 per year in 2018 dollars that is COLA-protected for life. I structured my life so I can live on that comfortably. My 401(k) and IRA distributions are 100% discretionary spending money.

If course, my math doesn't presume the unreasonable early retirement deals state workers & teachers get. I'm handcuffed until I'm 65 and Medicare-eligible and I wouldn't want to risk ACA being there. Using state & local tax dollars to fund retiree health care before age 65 is a deal none of the rest of us get.

A 55 year old teacher would have decades vested pension plus 10-12 years 401k match. Doable.

I do agree retiree health care for 50 somethings also needs to stop.

[Lincolnian]

Originally Posted by BobNJ1960

A 55 year old teacher would have decades vested pension plus 10-12 years 401k match. Doable.

I do agree retiree health care for 50 somethings also needs to stop.

It's more complicated than your solution suggests. Changes to federal law would also be required as current law would limit any SS earnings that those switched over would receive due to WEP. This would hit anyone who has any eligibility for a pension. Additionally, the lost years of earnings that aren't counting toward substantial earnings requirements for SS would result in those with less than regular retirement vesting having a low pension and very limited retirement funds from SS.

This is not the same as when companies, like my former private employer, switched employees over from a pension to a defined contribution plan as employees were still eligible for a full SS benefit and credit for service. In addition, many were offered opportunities to contribute to a matched portion in their 401k with a quality plan to supplement the pension and SS they would be receiving.

[BPt111]

2018-2019 Budget

Taxnnecticut

"Eliminating a middle-class income tax credit; boosting cigarette, increase on hotel and real estate conveyance taxes from 15 to 17 percent; closing a sales tax exemption for over-the-counter medications; and stretching out spiking teacher pension costs similarly to last year’s restructuring of government contributions to the state employees’ pension."

Tax proposal

25 cents added on cigarette it $4.35 tied with New York state, ending the sales tax exemption for non-prescription medications

Sales tax 6.35% to 7%

Special 7 percent rate for restaurant transaction

Changes in the unitary tax on corporations would raise an estimated $25 million per year from major national retailers that operate in Connecticut. In addition, corporations would pay an additional $18 million in taxes due to a surcharge starting in the 2019 calendar year.

$3 tax on tires,

7 cent gas tax increase

Tolls

https://ctmirror.org/2018/02/05/mall...r-budget-cuts/

Gov. Malloy's 2019 budget includes no sales or income tax hikes - WFSB 3 Connecticut

[BPt111]

I predict CT again will have no budget till December 2018-January 2019