Connecticut Seal

General Assembly

Amendment

 

February Session, 2014

LCO No. 4996

   
 

*SB0024904996SRO*

Offered by:

 

SEN. MCKINNEY, 28th Dist.

SEN. FRANTZ, 36th Dist.

SEN. MCLACHLAN, 24th Dist.

SEN. WELCH, 31st Dist.

 

To: Senate Bill No. 249

File No. 276

Cal. No. 216

(As Amended by Senate Amendment Schedule "A")

"AN ACT PROMOTING RETIREMENT SAVINGS. "

After the last section, add the following and renumber sections and internal references accordingly:

"Sec. 501. (NEW) (Effective from passage) (a) The General Assembly hereby finds:

(1) Whereas, Connecticut has the second highest unfunded pension liability in the country;

(2) Whereas, Connecticut's unfunded pension liability exceeds thirteen billion three hundred million dollars;

(3) Whereas, Connecticut taxpayers contribute more towards state employee pensions than taxpayers in almost all other states, with a taxpayer to employee funding ratio at least twice the national average;

(4) Whereas, Connecticut has the third highest state and local tax burden as a share of income;

(5) Whereas, "Tax Freedom Day" for Connecticut residents falls later than any other state, May ninth, causing them to work longer than residents of any other state simply to pay their federal, state and local taxes;

(6) Whereas, the biennial budget for the fiscal years commencing July 1, 2010, and July 1, 2011, raised state taxes by two billion six hundred million dollars;

(7) Whereas, despite this tax increase, revenue fell in the most recent quarter coming in four hundred sixty-one million dollars below projections;

(8) Whereas, just two years after raising taxes by two billion six hundred million dollars, Connecticut faces yet another two billion seven hundred million dollar out-year deficit;

(9) Whereas, because of declining revenues, the state's planned one hundred million dollar contribution to the state employee pension fund has been cancelled, exacerbating our long-term liability;

(10) Whereas, Connecticut is one of few states to make pensions a mandatory subject of collective bargaining, ceding legislative authority and responsibility to the executive branch; and

(11) Whereas, Connecticut residents cannot bear additional tax increases or increased debt without threatening their economic welfare and the economic stability of the state.

(b) Now therefore, it is hereby found and declared that there exists a severe financial emergency in Connecticut and that in light of the state's accumulating deficit, long-term liabilities and unsustainable employee obligations, it is necessary and in the public interest to modify the state's employee pension system so that the state can meet its long-term commitments to all state employees while protecting the state's financial integrity, economic stability and competitiveness for all its residents. Therefore, the following changes in section 502 of this act are hereby declared as a matter of legislative determination to be reasonable and necessary to implement an important public purpose.

Sec. 502. (NEW) (Effective October 1, 2014) Notwithstanding any other provisions of the general statutes, overtime pay shall not be considered salary for the purpose of calculating pension benefits for any state employee, including any employee subject to the collective bargaining agreement entered into between the State Employee Bargaining Agent Coalition and the state and submitted to the General Assembly on August 22, 2011, or any subsequent agreement entered into between the parties, who retires on and after the effective date of this section. "

This act shall take effect as follows and shall amend the following sections:

Sec. 501

from passage

New section

Sec. 502

October 1, 2014

New section