For over a decade, state employee compensation has exceeded compensation in Connecticut’s private sector by about 40 percent, the biggest gap in the nation.
The consequence is that the State Employee Retirement Fund (SERF) is drastically underfunded. It is difficult to fund such wildly overgenerous benefits, especially since the state didn’t even start to fund them until years after beginning to award them.
What now is an ongoing gravy train for state employees is ultimately a train wreck for them and the state. There are only three ways to avoid the wreck: (1) massive tax increases and/or service cuts, a disastrous option (2) significant cuts in state employee benefits and/or (3) a federal bailout.
Author(s): Red Jahncke
Publication Date: 26 March 2021
Publication Site: CT Examiner