Representative Wilms and Senator Boucher Propose Bill to Address State Benefits

State Representative Fred Wilms (R-142) and State Senator Toni Boucher (R-26) introduced bill Senate Bill 88: An Act Concerning Retirement and Health Care Benefits for Certain State Employees. Their bill proposes to realign non-union state employee benefits such as pensions, health care, and post-retirement health care (OPEB) to private sector levels.

“Employee compensation makes up almost 40 percent of state spending,” Sen. Boucher said. “If we are serious about solving the state’s fiscal crisis, we must recognize that we can no longer afford these generous benefit packages.”

Rep. Wilms said, “State employees benefits vastly exceed what most other Americans receive. Like businesses have done, we must pare back what we offer to ensure we can continue to provide the programs and services Connecticut residents need.”

The bill would require non-union state employees to convert to 401K style pension plans and participate in a high-deductible health care plan.

Under the existing defined benefit plans and retiree health care plans, the state faces more than $50 billion in future unfunded liabilities because taxpayers must assume the risks of actuarial underperformance. Proposed bill SB-88 would remove these risks.

Unionized state employees and retirees would continue receiving the benefits spelled out in their pre-existing union contracts. Bill SB-88 only applies to non-unionized employees, including the Governor and all state legislators.

“Leadership starts at the top,” Rep. Wilms said. “Legislators and the Governor should be subject to the same benefit rules that apply to state employees.”

SB-88: An Act Concerning Retirement and Health Care Benefits for Certain State Employees was referred to the legislature’s Joint Committee on Appropriations.