Malloy wants cities, towns to pay part of teacher pensions

Photo courtesy: MGNonline

Malloy wants cities, towns to pay part of teacher pensions

HARTFORD, Conn. (AP) – Connecticut cities and towns are facing the possibility of having to pay one-third of the cost of teacher pensions.

Democratic Gov. Dannel P. Malloy announced Friday his new budget proposal would require municipalities to contribute $407.6 million in fiscal year 2018 and $420.9 million in fiscal year 2019.

Teachers currently contribute 6 percent of their salary to the Teacher’s Retirement System. The state pays 100 percent of the employer’s share, which will be $1.2 billion this year.

Malloy says policymakers must consider changes in teacher pension funding. The new budget beginning July 1 is projected to be up to $1.7 billion in deficit.

Betsy Gara, executive director of the Connecticut Council of Small Towns, says Malloy’s proposal will “impose a huge burden on local property taxpayers” in small communities.