Welcome to this month’s final edition of This Week in Pensions! This is the news you need to know in the fight for a secure retirement.
Before you dive into our top stories from this week, check out some stories of public employees helping their communities.
Here are the top stories from this week:
Governor Signs CT State Budget; Highlights of What’s In It by NBC Connecticut. On Wednesday, Connecticut Governor Ned Lamont signed the state’s two-year budget into law. The budget includes two provisions related to the Constitution State’s public pensions. The first is a $63 million bulk payment towards the state’s unfunded liabilities, and the second will be an additional $1 billion payment for the unfunded liabilities that Connecticut will make after the fiscal year 2021. These budgetary actions are a victory for the retirement security of Connecticut’s hard-working public employees. The state has previously skipped or deferred payments into the public pension systems in the past while public employees have continued contributing with each and every paycheck.
Retirement: How the pandemic hurt many American nest eggs by Stephanie Asymkos. A recent survey from Clever Real Estate revealed that the pandemic-induced economic crisis has forced many workers to withdraw from their retirement savings. According to the study, since March 2020, more than one-third of Americans have had to take money from their retirement savings in order to make ends meet. Of those who lowered their retirement savings, the average amount withdrawn was 44% of their retirement fund. “People were taking money out of their retirement savings to help pay for their everyday finances,” said Dr. Francesca Ortegren, a data scientist at Clever Real Estate. “And that was something that was concerning.” The findings from this report are another example of why it is critically important for policymakers to prioritize protecting pensions. During the economic downturn and beyond, they have provided our nation’s retired public employees with a modest, guaranteed benefit which will ensure they can retire with the security and dignity they deserve.
Be sure to check back next month for the latest news in the fight for a secure retirement!