Evaluating Connecticut's Pension Benefits during the Pandemic

Research Report

Evaluating Connecticut's Pension Benefits during the Pandemic

May 7, 2020

Abstract

The coronavirus pandemic threatens the financial stability of Connecticut’s pension plan for state employees, one of the nation’s worst-funded retirement plans. This strain could lead to benefit cuts, but recent plan changes have already reduced future pensions and raised mandatory employee contributions. Many state employees hired today will receive only half as much from the retirement system as they would have collected under the plan rules in effect 25 years ago. Two-thirds of new hires do not work long enough to benefit from the state retirement plan. Alternative plan designs could increase retirement incomes for many of Connecticut’s public servants.

Cross-Center Initiative

Cross-Center Initiative: 
To reuse content from Urban Institute, visit copyright.com, search for the publications, choose from a list of licenses, and complete the transaction.