Rep. Fishbein Votes No on Pension Deal

Bill does not make structural changes, will cost taxpayers additional $11 billion

State Representative Craig Fishbein (R-90) today voted against Governor Malloy’s state pension deal between the state of Connecticut and the State Employees Bargaining Agent Coalition because it does not make structural changes to the way government handles debt service and will cost taxpayers an additional $11 billion by postponing repayment of existing pension debt until 2047.

“The plan put forth today will stretch payments out for another 15 years, cost taxpayers an additional $11 billion and is the kind of irresponsible financial decision that Connecticut taxpayers are sick and tired of,” Rep. Fishbein said. “The governor is able to benefit from this plan while crafting his state budget proposal while the rest of us are forced to pay the bill for decades to come. This one-sided agreement is untenable.”

The pension deal, negotiated by Governor Malloy and the State Employees Bargaining Agent Coalition (SEBAC), and without Republican input, was an attempt to tackle the state’s mounting budget deficit by reducing short-term contributions to the pension plan. Under the plan, pension payments would be level through 2047 but would cost taxpayers an additional $11 billion compared to the current plan. The new plan also recommends a reduction in the projected investment rate of return from 8 percent to 6.9 percent.

The bill passed the House by a vote of 76 to 72.

Republican lawmakers proposed changes that would use and reinvest union concession savings into the pension fund, for a potential reduction to the unfunded liability of $200 million. By reinvesting those savings into the pension fund actuaries estimate a 7-year reduction in the length of payback and a reduction to projected additional costs from $11 billion to $3 billion.