June 5, 2007

REP. CANDELARIA SUPPORTS TEACHERS’ PENSIONS FUNDING
Investing now saves taxpayers’ billions over long term

State Rep. Juan Candelaria (D-New Haven) hailed legislation to shore up finances in Connecticut’s Teachers’ Retirement Fund (TRF) that passed the House of Representatives and will save taxpayers billions of dollars in the long term.

The legislation would reduce the growth in the TRF’s unfunded liability – estimated at $6.9 billion – by authorizing State Treasurer Denise Nappier to purchase pension obligation bonds at favorable interest rates, thus allowing the state to substitute higher interest for lower interest debt.

“This is a very important piece of legislation and I am pleased to see it pass. Our teaching professionals deserve our support and commitment to guarantee their retirement benefits. This legislation is a step forward in the right direction,” Rep. Candelaria stated.

With a repayment term spread over 25 years, savings on the lower interest debt could reach $2.8 billion. The legislation was first proposed by Speaker Amann and Treasurer Nappier in February.

As a condition of the bond sale, the legislation also commits to fund teachers’ pensions at 100% of actuarial recommended contributions, something the state failed to do from 1992-2005.

Rep. Juan Candelaria was elected to office in 2002 representing the 95th Assembly District in the House of Representatives. He is Assistant Majority Leader and a member of the Appropriations and Regulations Review Committees and Vice Chair of the Higher Education and Employment Advancement Committee.