Consultant: Connecticut could see up to $900M in savings as retirement ‘tsunami’ approaches

Excerpt:

A study of Connecticut’s state government in advance of an expected wave of retirements next year has identified as much as $900 million in potential savings in executive agencies with total budgets of $14 billion, while acknowledging the significant obstacles to making changes in one of the most heavily unionized public-sector workforces in the United States.

The report released Wednesday by the administration of Gov. Ned Lamont says 8,000 of the 30,000 executive-branch employees are eligible to retire by July 1, 2022, when retirement benefits will be reduced under the terms of a 2017 concession deal. A survey found about 70% of the eligible workers were leaning toward retiring.

The highest percentage of expected retirements is among employees responsible for public safety and caring for at-risk children and people with intellectual disabilities and mental illnesses. As such, the exodus poses daunting challenges to maintaining essential services and perhaps offers once-in-a-generation opportunities for fundamental change. 

Author(s): MARK PAZNIOKAS

Publication Date: 31 March 2021

Publication Site: CT Mirror