Connecticut teachers rally to save retirement program

Teachers Push For Amendment To Ensure Pensions

POSTED: 9:25 am EST March 30, 2006

"How can we attract teachers to the profession with no pension," he asked. "Or, if we attract them, they won't stay."

HARTFORD, Conn. -- The state's two teachers unions staged rallies and demonstrations across Connecticut Wednesday to draw attention to the state's teacher retirement program, which is underfunded by more than $5 billion.

The Connecticut Education Association, the larger union, is also spending $400,000 on a television ad campaign, urging voters to call their legislators and tell them to support Senate Resolution 3, a proposed constitutional amendment that would require full funding of the pension system.

"We're taking it to the people and we're taking it to legislator by legislator," said CEA President Rosemary Coyle, who appeared at a rally outside the state Capitol that drew more than 1,500 teachers. "Teachers want to ensure that their benefit will be the there."

Marilyn Lacerte, 56, a math teacher at Windsor High School, said she plans to retire this year. Her husband, a former teacher, retired seven years ago. Lacerte said she worries about their financial futures.

"I do have longevity in my family," she said. "I could see myself needing this pension for 35 years."

Although state statutes require the legislature to fund the actuarially required amount to the teachers pension fund, lawmakers for years have overridden that requirement and socked away only between 66 percent to 85 percent of the required amount. For the 2006-07 fiscal year the state is depositing $286.6 million -- 70 percent of what is required, according to the CEA's figures. In past years, the difference in funding has been used to cover other programs. This marks the third year in a row that CEA has pushed for a constitutional amendment.

"We've been required by law to properly fund this teacher retirement fund for years," said Sen. Thomas Herlihy, R-Simsbury, the ranking Republican on the Education Committee who is backing the amendment. "We have essentially been looking the other way."

House Speaker James Amann, D-Milford, opposes the Senate resolution, which would require a two-thirds vote of each chamber to put the question on the November ballot for voters to approve. He prefers depositing additional money into the fund from the state's budget surplus, estimated at $600 million for this fiscal year. There is a concern among some legislators that a constitutional amendment requiring full funding of the teachers retirement program might lead to other amendments requiring full funding of other grants and programs.

Gov. M. Jodi Rell, a Republican, said she understands the teachers' concerns but is uncertain whether a constitutional amendment is necessary. She said state legislators need to be consistent about depositing the money each year.

"It's really not the fault of any one legislator, or any one year. But when you have other criteria or other needs that have to be met, you're trying to look for where you're going to get those dollars," Rell said. "But underfunding though, you've created a bigger hole long term and it's hard to make that up."

Between June 30, 2002, and June 30, 2004, the unfunded liability grew by more than $2 billion to over $5 billion. A new estimate is expected later this year. According to the most recent actuarial report in 2004, the pension fund had a value of $11.3 billion. A new report is expected later this year. According to CEA, there are 50,836 active, full-time educators in Connecticut, including superintendents, principals and teachers. There are 24,870 retirees. Connecticut teachers do not participate in the Social Security system. Instead, they contribute 7.25 percent of their salaries to the retirement fund.

Jeff Ibsen, an eighth grade teacher at Cromwell Middle School, said he's not worried about his own pension. He's worried about future teachers.

"How can we attract teachers to the profession with no pension," he asked. "Or, if we attract them, they won't stay."