MONTPELIER â It was ideas they wanted, and ideas they got.
The Vermont House Government Operations Committee, continuing its work on addressing the state pension systemâs multi-billion dollar unfunded liability, heard proposals from committee members, as well as from fellow House members and the Vermont State Employees Association (VSEA).
The discussion followed days of reactions from stakeholders and experts, and two public hearings in which the committeeâs initial proposal to close the underfunding gap and adjust governance was blasted by enrolled employees.
That proposal, a starting point for discussions, suggested reductions in cost of living adjustments and increases in employee contributions and years worked for eligibility in the system, as a means of cutting the fundsâ nearly $3 billion unfunded liability. Those changes are not popular with teachers and state employees, and the Vermont State Employees Association is planning demonstrations this weekend
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MONTPELIER â Vermontâs multibillion-dollar unfunded pension liability for teachers and state employees will grow by another $604 million in the coming year, and the state will face an increase of $96 million in its annual contributions to those retirement systems, unless action is taken to reduce costs, State Treasurer Beth Pearce said in a report issued Friday.
But the solution Pearce suggested to address the growing gap between the stateâs funding and its liability â reducing or eliminating cost of living adjustments (COLAs) for current employees who have yet to retire â has already been rejected by the state teachersâ union.