The University of Connecticut is facing a large deficit for the next year, and it's all due to unfunded pension liabilities. This unfunded pension liability seems to be the pervasive disease infecting all of Connecticut's governmental entities. As a result, UCONN is going to raise tuition again and try to lay off some staff.
The amazing thing is that it seems as if no one at UCONN or in state government has proposed changing to a defined contribution pension plan. That's the sort of plan that is used by more than 90% of private companies and even the majority of governments. In one move, the problem of soaring pension costs would go away. We would still need to deal with underfunded past liabilities, but the problem would stop getting worse.
This is not a complicated matter. It's the obvious answer to a terrible and ongoing problem. If the Democrats who control all of the state government were not so beholden to the state employee unions, we might see a sensible solution. If things continue on their present course, however, all we will see is future disaster.
The amazing thing is that it seems as if no one at UCONN or in state government has proposed changing to a defined contribution pension plan. That's the sort of plan that is used by more than 90% of private companies and even the majority of governments. In one move, the problem of soaring pension costs would go away. We would still need to deal with underfunded past liabilities, but the problem would stop getting worse.
This is not a complicated matter. It's the obvious answer to a terrible and ongoing problem. If the Democrats who control all of the state government were not so beholden to the state employee unions, we might see a sensible solution. If things continue on their present course, however, all we will see is future disaster.
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