January 31, 2006

Rep. Ward Calls for Constitutional Resolution to Guarantee Teacher Pensions

HARTFORD – House Republican Leader state Rep. Robert M. Ward today launched a statewide effort to enact a constitutional guarantee to fully fund teachers’ pensions, a move he says will save the state hundreds of millions over the long term in unfunded retirement liabilities.

“Unless we act now and make good on our promise to teachers we’ll either have to slash benefits down the road or stick our children and grandchildren with a bill they can’t pay,’’ said the Northford Republican. “It is fiscally prudent to make this commitment because it will save hundreds of millions over the long term.’’

If  75 percent of the House and Senate support the Republican resolution for a constitutional amendment the issue can go before voters in the November elections. The resolution would require the legislature to make annual deposits in the retirement fund equal to the amount determined by actuaries to cover retirement obligations.

Ward said that a statewide mailing has begun to reach current teachers and retirees notifying them of the constitutional resolution effort and urging them to contact  lawmakers to support it. He said the mailing underscores the importance of the matter.

Ward noted that 75 percent of the House Republicans have already co-sponsored the resolution and many House and Senate Democrats have as well. “Yet the Democratic leaders have refused in the past to raise the issue for a full vote,’’ Ward said. “If they do, they know it will pass easily.’’

Currently, there is an estimated $5 billion in unfunded liabilities that will accelerate to even staggeringly larger amount if the state continues to fail to meet its obligations.  

Ward praised Democrats for joining Republicans on Jan. 6 for proposing to increase payments to the retirement fund by obligating about $245 million from the current estimated surplus, a short-term response to a looming structural problem. “If we don’t take this long-term approach the unfunded liability will grow exponentially greater and we will never make up the difference. It could quickly result in a downgrade of the state’s credit rating and cost billions more in debt payments,’’ Ward said.