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Memo Details Cost of State Employee Pensions

The memo shows just how much the state spends for the retirement of certain employees.

A memo by state Comptroller Kevin Lembo details the cost of public employee pensions.  For every dollar spent on most state employee, 46 cents goes to their retirement. This retirement plan reportedly applies to state university employees.

According to the Yankee Institute for Public Policy, a think tank based in Connecticut, the majority of regular state employees contribute 2 percent of their pay to the retirement fund. With the state’s contribution, the organization says there’s a “2,300 percent return on investment” for regular employees.

The retirement plan with the lowest burden is the Alternate Retirement Program, which is a defined contribution plan similar to a 401K. For every dollar spent on an employee, only 9 cents goes to the retirement fund. This plan is for employees at state universities.

Judges receive the highest retirement ratio, with 58 cents of every dollar going to retirement, but reportedly contribute 5 percent of their salary. Retirement accounts for employees eligible for hazard pay – such as police officers – receive 49 cents per dollar and contribute 5 percent, according to the organization.

Teachers contribute a reported 6 percent of their salary and their retirement costs 35.6 cents for every dollar spent. 

George Latimer July 12, 2012 at 04:32 PM
It's time for Connecticut taxpayers to wake up. Very soon your taxes will be going up 5%-10% PER YEAR to pay for public employee salaries, benefits and pensions. Public sector unions have owned CT politicians for years and it's bankrupting Connecticut. It's time to take back Connecticut for the TAXPAYERS. If your local representative supports public sector unions then he/she DOES NOT support you, the taxpayer. There is no grey area. Look at Wisconsin, Rhode Island, San Jose, San Diego, San Bernardino, Stockton for the damage public sector unions are doing to America. Public sector unions declared war on the taxpayer many years ago. It's time for Connecticut taxpayers to defend themselves. We need politicians that will increase employee pension contributions, increase employee healthcare contributions, increase public employee retirement ages, switch all current and future public employees to 401K plans. Is it fair that public sector employees can retire at 57 with VERY generous lifetime pensions and FREE healthcare while the average Connecticut taxpayer retires at 67 with NO health coverage and little more than a paltry monthly social security check? WAKE UP Connecticut taxpayers. We have the numbers at the polls. There are three hardworking taxpayers for every public union employee/supporter. We need to vote for change. We need politicians that support US not a privileged minority known as public sector union workers.

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