CCM wrong on public pension problems

It’s disappointing to see Joe DeLong and the Connecticut Conference of Municipalities blame dedicated public service workers for Connecticut’s economic problems. (Nov. 18, “Lamont must reform unsustainable public pensions”).

There’s no arguing that Connecticut’s pension systems have been underfunded due to decades of neglect by politicians of both parties. However, we are on an affordable and sustainable path toward full funding, largely because of collective bargaining and advocacy by public-sector workers.

For example, by agreeing to changes in retirement ages, lower-benefit pension tiers and contributing more to their pensions, state employees have helped the retirement system become solvent (outside of the Tier 1 program that has been closed since 1984), while providing modest benefits. The average pension for a current-tiered, non-hazardous duty state employee is less than $19,000 annually.

Public pension plans generate revenues that support vital public services — a point worth remembering amid a pandemic. According to the National Institute on Retirement Security, in 2018, the spending of pension benefits in Connecticut generated $1.6 billion in federal, state and local tax revenue. This money goes back into local communities to support public priorities like schools, road maintenance and public safety.

There’s another way to put pension costs in context. As noted by Good Jobs First, in 2018, Connecticut’s public retirement systems had pension obligations of $449.8 million compared to $564.1 million in business subsidies and corporate tax breaks. Think about it. Public pension tax revenues support Main Streets across our state. Can the same be said about economic incentive giveaways and corporate tax-dodging?

I invite Mr. DeLong and CCM to join us in a high-road approach to economic prosperity and job creation that includes lifting all workers’ wages and benefits while demanding that Connecticut’s ultra-wealthy and corporations pay their fair share of taxes.