Proposal To Close State Pension Gap

Gov. Dannel Malloy announced a proposal on Monday that would allow the state's , which contains less than 48 percent of its necessary funds, to be fully funded by 2032, according to the Associated Press.

Malloy is proposing that the state increase its contribution to the fund by $125 million next year and subsequent years, which will allow the fund to achieve 80 percent funding in 2025 and 100 percent funding in 2032. He will announce to the General Assembly next month how he plans to cover the first payment.

“Let’s put what we’re doing another way — too many people wait until they are older to start saving for their retirement, and as a result they have to make large payments at the end in order to make it work, Malloy said in a statement released by his office. "What we’re announcing today is basically like starting a 401k when you’re young, and getting some of the work done earlier.”

Malloy told reporters in Hartford on Monday that his announcement had nothing to do with , according to the Associated Press.

The issue of employee pension funding in southern Fairfield County has affected its towns and cities quite differently. While Stamford Mayor Michael Pavia  that his city's funds are "fully funded," Trumbull to fill a large gap.

Related Topics: Connecticut, Malloy, and Pension Reform