In the wake of Detroit’s municipal bankruptcy filing, CNBC has released a report on the condition of state and municipal pension obligations. The report found that Connecticut’s level of unfunded pension liabilities is one of the highest in the country. This is a precarious situation for taxpayers, and not only for those who work in the private sector. It is also dangerous for public employees who are expecting to receive predictable levels of retirement income.
As of its last biennial actuarial evaluation in 2012, Connecticut had $9.7 billion in assets and $23 billion in liabilities in its State Employees’ Retirement System (SERS), meaning that only 42.3% of its obligations were funded, and $13.3 billion, or about 58%, were unfunded. While an 80% funded ratio (20% unfunded) is generally considered healthy, Connecticut is one of nine states, according to CNBC, that have a ratio of less than 60%, and among those nine, it is second from the bottom of the list, just behind Illinois.