Hartford — Connecticut would be the first state to split its pension system into two funds in order to more easily pay off the unfunded liability, pension experts from Boston College said Tuesday.

Democratic Gov. Dannel P. Malloy, whose administration hired his alma mater to review the state's public employee pension and teacher pension systems, wants to create one fund for so-called "Tier 1" retirees, people hired before 1984. The approximately 30,000 recipients make up the bulk of the state's unfunded pension liability, which would be funded on a pay-as-you-go-basis.

The second fund would cover pensions for newer hires, which is currently about 95 percent funded.

Alicia Munnell, director of the Center for Retirement Research at Boston College, praised Connecticut for considering something no other state has done, adding that there should be no concerns.

"No," she said during a briefing with reporters about the study. "I think this is the sensible thing to do."

Munnell said most states with unfunded pension liabilities have looked to renege on benefits for retirees. She said Connecticut instead wants to "make sure public employees get every penny they're entitled to."

Malloy's proposal would need approval from the unions and state legislators. Meanwhile, both the Democratic state treasurer and comptroller have raised questions about the concept.

Nearly $11 billion of the state employee pension system's $15 billion unfunded liability stems from people receiving "Tier 1" benefits. If no changes are made to the current funding system, the new report warns how annual state pension contributions could climb from about $2.5 billion to about $5 billion. If investment returns fall short of expectations, the report further warns "the future becomes alarming."

The report blamed the unfunded pension liabilities on years of inadequate contributions, overly optimistic assumed rates of return and poor demographic and retirement assumptions.

Also Tuesday, the governor's and legislature's budget offices agreed projected revenues for the 2016-17 fiscal year are about $402 million less than what was included in the two-year, $40 billion budget. The new estimates come as legislative leaders are expected to meet privately again with Malloy this week on how to address a shortfall in the current fiscal year, which lawmakers say is $350 million to $370 million. A special legislative session on the budget could be held in December.