State
lawmakers must increase contributions to the state-run retirement fund for
55,000 active and retired public school teachers to keep the fund solvent, a
spokesman for retired teachers testified Tuesday.
Michael D. Norman,
legislative chairman for the 10,000-member Association of Retired Teachers of
Connecticut, told the appropriations committee that the fund is $5.1 billion
short.
Norman referred to the most recent actuarial study, which stated
the fund has $16.5 billion in current and future obligations but only $11.3
billion in assets.
"We have a lot of people ready to retire," he said.
"But in a few years, we'll have more going out than what is earned. Then we'll
have to start using the principal. If that happens, young teachers face a far
different retirement."
According to the actuarial study, within 11 years,
half of the estimated 50,000 teachers paying into the retirement fund will have
been recently hired and contributing relatively less to the
fund.
Teachers do not contribute to or collect Social Security, so the
state pension is crucial to educators' retirements, said Norman, who retired
from Manchester public schools in 2000 after 36 years teaching.
Sen.
David Cappiello, R-Danbury, gave his support to the retiree group's request that
a constitutional change be made to exempt state contributions from a state
spending cap, so enough money can be put in to ensure the fund is solvent. Gov.
M. Jodi Rell has said she would oppose any effort to break the spending
cap.
A similar request was approved by the state Senate last year but
died in the House.
