Healthy pension plans have 100% funding
This is in regards to your editorial, "State cannot ignore pension problems," (Dec. 26). There was a comment that 80 percent funding was healthy for a public pension plan. This is not the case.
This is from the American Academy of Actuaries: http://www.actuary.org/files/Pension%20Funding.pdf
The beginning: "The health of defined-benefit pension plans is a key issue to the tens of millions of Americans who are receiving or expecting to collect pension benefits. Some have said that the level of funding - specifically an 80 percent funded level - should be used as a general benchmark to determine whether pension plans are financially healthy. In reality, however, no single level of funding distinguishes a healthy plan from an unhealthy plan. In fact, plans should have as their objective accumulating assets equal to 100 percent of relevant pension obligations."
Of course, the Connecticut pension situation is even worse. But 80 percent is far from healthy.
Stories that may interest you
I did not vote for our president. I am sorry. Please forgive me. I am guilty of thinking for myself, but I do not want to be canceled. I need help. I saw on CNN (or was it MSNBC) that if I do not already despise former President Trump and every other Republican, I will need reprogramming before...
Now, more than ever, we need to take strides forward in global environmental awareness. The way Connecticut can do this is by following Maine and Maryland in the banning of polystyrene usage. Polystyrene is commonly known as Styrofoam; which is a substance used to save us three minutes, but...
Governor Lamont's choice of words on January 19 with respect to the proposed Killingly Energy Center 650-megawatt natural gas power plant were unfortunate. Slow permitting and "Playing some games?" Using the power of state government to abuse regulatory applicants and the public? His words...
Connecticut has the opportunity to be a national sustainability leader this legislative session. Polystyrene foam (Styrofoam) accounts for 30% of landfill waste. An item that is used for mere minutes then pollutes the environment for hundreds of years. I have been involved in green...