Connecticut’s Pension Systems

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Connecticut state retirees have the highest average annual pension of any state in the nation, at $35,079 in 2011, according to a new report from the U.S. Census on state and local government pension systems.

Only six states pay an average pension of more than $30,000 — California, New York, Rhode Island, Colorado and Nevada.

The national average was $25,135 in 2011, up 3.1 percent from 2010.

Connecticut’s government employees contribute a smaller proportion than state and local government employees nationally; of all contributions to pensions, workers contribute 29.5 percent. In Connecticut, it’s 20.8 percent.

Investment returns are what make the pensions function, as¬†contributions don’t equal the payments going out and administrative costs.

Nationwide, contributions reach 59 percent of what’s paid out in pensions. In Connecticut, it’s 57 percent.

But when you take returns into account, Connecticut’s asset growth kept it substantially ahead of its payment obligations. While $3.57 billion was spent in fiscal year 2011, the addition of a year’s worth of contributions plus the investment growth was $6.3 billion.

 

 

 

 

 

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14 thoughts on “Connecticut’s Pension Systems

  1. Rob

    We have the best retired State Employees in the country that tax payer money can buy. What’s the difference between a State Employee and a retired Stare Employee? Nothing, they both do nothing but collect a big pay check.

    1. Connecticut is Circling the Drain

      Did you hear about the state worker that found an old lamp in the desk drawer of his cubicle? He rubbed on it and a genie granted him 3 wishes.

      For my first wish I wish to have a 20 room mansion on the beach. *poof* and he was sipping a cold drink at his beach mansion.

      For my second wish I wish to have $10M in a Swiss bank account. *poof* and it was so.

      For my third wish I never want to work another day in my life. *poof* and he was back at his desk.

      I’ll be in the room all day. Don’t forget to tip your wait staff.

  2. J2D

    Does this analysis include state pensioners DSNAP benefits? I mean, if a nurse making over $80k a year needs DSNAP, surely taxpayers should give that benefit to state pensioners.

  3. alan

    I can tell you that living near the shoreline the vast majority of people that have moved here recently are soon to be retired teachers from upstate who are taking advantage of the low prices due to these hurricanes. Teachers are part of the state pension plan and many move here a few years before retirement as the commute to Hartford is not that bad and with summers off why not. All you have to do is go to the golf courses and see many “board of ed” employee stickers from hartford suburbs

  4. paul

    Showing almost 3 billion dollars in growth is a joke !!! The stock market in the last few years has been great. The Investments over the last 10 years have been awful…..Please show the last 10 years…. Be honest…And compare the State’s investment return to the S & P 500…… Time to hire an outside Company to take over……or STOP the election of a politician who has little history of managing Billions of dollars

  5. Dr. Aki Bola, Esq.

    It’s the John Edwards Two Americas: those who have juicy state pension plans, and those who have private poverty level 401Ks.

  6. Cameorn

    Let’s not forget that the cost of living in this state is much higher than others too. I actually commend anyone that can retire and still live in this state. It’s not easy to do.

    1. Government Workers ARE The 1%ers

      and it’s even higher for those of us who have to pay the salaries and pensions of the government workers, including annual increases, COLAs, reduced copays, medical for family members in retirement, etc. It is easy to do if you work for the state

  7. Amanda C. Brown

    Please distinguish between the pension plans by tier. These are Tier 1 pensioners and not to be confused with the significantly reduced pensions of Tier 2 and its successors. There are few Tier 2s that have reached retirment age.

    1. Government Workers ARE The 1%ers

      Amanda: What is the amount for Tier 2 pensions? What is the retirement age?

      1. alan

        People who are not state employees know nothing of tierI, 2, etc. HOwever when i visit family in Windsor Locks the entire talk is of pensions,tiers, etc as prisons, hospitals and state offices are the home of seemingly then majority of residents there. How about a state that employs private sector people making items at a profit instead of this inside baseball that 95% of the people dont have any idea exists

  8. Government Workers ARE The 1%ers

    can’t wait to hear from all the state workers on how this is such a lousy deal. I’d also like to see how many of them step forward to admit they were wrong these last couple of years by insisting that things weren’t all that good on the pension front.

  9. JS50

    Last week it was revealed one of the marshalls was making over 600k. That’ll be a nice pension. Overtime shouldn;t count towards pensions. That would reduce the abusers pensions. Wonder how many of the pensioners live out of state, say Florida.

  10. georg

    please. several family members with state benes. everything covered. multiple residences!i have no place i c
    orgean afford to live here. almost 200 yrs our family has been here ! HUGE mistake.oh

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