New Haven Register (Sunday) (New Haven, CT)
Panel seeks fix for underfunded state pension plans
“We recognize the dangers of approaching policy decisions that might be more properly abrogated to the Legislature or other aspects of government.”
Rep. Jonathan Steinberg, D-Westport
The commission studying the state’s pension crisis agreed on Friday to support the concept of transferring state assets into a trust to benefit the under-funded state employee and teacher-retirement plans.
But they also admitted that — beside possible revenue from the Connecticut Lottery Corp. — there are really no other assets identified at this time that could be contributed.
The panel agreed to continue its meetings and hoped to have a final report finished by early March, even though its term expired when the new General Assembly convened earlier this month.
During a fast-moving two-hour meeting in the Legislative Office Building, the chairman of the Pension Sustainability Commission, Rep. Jonathan Steinberg, D-Westport, herded members into several consensus votes, including a proposal that the office of the state treasurer should have a major role in whatever programs are eventually adopted.
“We recognize the dangers of approaching policy decisions that might be more properly abrogated to the Legislature or other aspects of government,” Steinberg said.
One member of the panel, Joseph Rubin, associate state attorney general, warned that the costs of disposing of assets could eventually “eat up potential benefits.” He noted that state parks and forests are virtually off the table.
Panelists also agreed that it’s unlikely that any eventual toll money could be channeled for helping the $100-billion underfunded pension liabilities, because of the need for infrastructure funding.
Steinberg, who peppered the meeting with quips and self-deprecating remarks, practically celebrated some of the votes.
“I’d like to admit, fellow commissioners, that we actually accomplished something today,” he said after the first unanimous vote to recommend assets be put into a trust.
But the panelists conceded that very little beside the lottery has been identified. With more than 8,200 state properties, each would need unique scrutiny before any sale or leasing. And Department of Energy and Environmental Protection, as well as DOT properties, are generally off the table because of federal funding requirements.
“I don’t feel we’re ready to be as conclusive about state-run capital assets until somebody does more analysis,” Steinberg said. “We talk a lot about restoring confidence in the state. This is all part of a bigger picture.”