many factors, including the actual
and assumed rates of return on plan
assets, the smoothing of investment
gains and losses, the assumed and
actual rates of medical inflation,
whether or not the state pays its full
actuarial required contribution, the
age of retirement, and longevity of
will not reduce the pension's unfund-
ed liabilities because eventually a
closed plan would only have retired
members. The investment options
would be limited (and would need to
be very conservative) and no state
workers would be added to the plan.
eral/state entitlement/OPEB costs.
of federal entitlements guarantees
that the federal Social Security and
Medicare systems will be most
stressed at the same time as
Connecticut is facing huge shortfalls.
for Connecticut's public retirees and
their dependants. It is not logical that
taxpayers in less generous states
the Growth of Connecticut's
Pension and OPEB Liabilities
reduce the unfunded liability. ARC
calculations are annual and consist of
the normal cost of retirement benefits
earned by working employees during
the year and the amount necessary
to amortize the existing unfunded lia-
bility over no more than 30 years.