June 5, 2007

REPRESENTATIVES RYAN, LEWIS APPLAUD NEW LEGISLATION TO
FUND TEACHER RETIREMENT, SAVE TAXPAYERS BILLIONS

A bill designed to provide $6.9 Billion to the Connecticut Teachers Retirement Fund (TRF) was passed by the State House of Representatives almost unanimously Monday night. Representatives Joan Lewis (D-Coventry) and Kevin Ryan hailed the legislation as “historic” for its ability to fund the pensions, while saving taxpayers billions of dollars in the long term.

“One of our top priorities this legislative session was to finally fulfill our commitment to the TRF,” Rep. Lewis said. “What is most amazing about this bill is that not only was the legislature able to secure these funds, but it was done with significant savings to the taxpayer in the future.”

The new measure reduces growth in the TRF’s unfunded liability, estimated at $6.9 billion, by permitting State Treasurer Denise Nappier to purchase pension obligation bonds at more favorable interest rates, allowing the state to substitute higher interest for lower interest debt.

With a term of repayment that spans 25 years, the lower interest debt could save taxpayers almost $2.8 billion.

“This is the largest and best deal that we have given taxpayers in recent history,” said Rep. Ryan. “Investing in our children’s future while giving something back to the hard-working families of Connecticut is something this legislature should be really proud of.”

As a condition of the bond sale, the legislation is committed to funding teachers’ pensions at 100 percent of the actuarial recommended contributions. Complete funding hadn’t been done by the state from 1992-2005.

The final vote on the bill was 145-5. The bill now awaits action in the State Senate.

Kevin Ryan is currently serving his 8th term and represents the towns of Bozrah, Franklin, Lebanon and Montville.

Representative Lewis serves the towns of Columbia, Coventry and Vernon and is currently serving her third term.