Tom Marsh 2010

February 18, 2010

FOR IMMEDIATE RELEASE
Contact: Katherine Holt
Marsh 2010
Tel: (860) 526-2003
email: marsh2010@gmail.com
www.marsh2010.com

MARSH SUPPORTS CAPPING OUTSTANDING PENSION OBLIGATIONS

Chester, Connecticut — February 18, 2010 — Republican Tom Marsh, exploring a run for the governor’s office, comments on Connecticut’s poor showing in state pension funding.

In a study issued by the Pew Center for the States, Connecticut ranks 5th from the bottom among all states in funding levels for state pension plans. In a position paper posted in early February on his campaign website, www.marsh2010.com Marsh states the following:

Annual pension obligations will increase so long as there is growth in the number of State employees. Taxpayers’ money will continue to be used to pay for unequaled benefits – the so- called “Cadillac” health insurance plans – so long as State employees and teachers continue to live longer, elongating the use of these generous plans.

The way to curb the exponential growth in outstanding obligations and unfunded liabilities is to cap it now. By capping the amount the State owes its employees and municipal teachers, the people of Connecticut can feel sure that their tax dollars are being spent on upgrading infrastructure, school construction projects, and other jobs creation, revitalization efforts this State needs.

This is possible by coming to the table with State employees and teachers unions when their contracts re-open this year and next year and having them agree to all new employees setting aside a portion of their wages to go into a personally-owned and administered retirement account. Deferred contribution plans, such as 401(k)s, 401(a)s, and 457s are transferable when jobs are changed, have no vesting periods, and allow the individual to decide where they want to invest – instead of having a board or commission decide for them. Also, if an employee’s job was lost, he/she would still own and have rights to the money they put aside. This is a significant change from the current system of having to wait years to be fully vested and “own” the money the State puts aside for your retirement.

As Tom points out, “an insolvent pension program serves no one’s interests; not the employee, not the taxpayer and not the state. Marsh goes on to say “ we need to view today’s fiscal situation as an opportunity to “fix it right this time” and put in place a pension plan that provides fiscal practicality for the taxpayer and retirement security for the state employees, a goal that should be shared by all sides.