State Leaders Tout Pension Progress as Connecticut's Fiscal Position Strengthens

Governor Ned Lamont, State Treasurer Erick Russell, and Comptroller Sean Scanlon announced continued progress toward meeting Connecticut’s long-term pension obligations Wednesday, marking another milestone in the state’s multi-year fiscal turnaround.

The joint announcement highlighted improved funded ratios for both the State Employees Retirement System and the Teachers’ Retirement System, the result of years of required contributions and favorable investment returns.

“When I took office, Connecticut faced some of the most serious pension challenges in the nation,” Lamont said. “Today, we can point to real, measurable progress. We’re meeting our obligations while still investing in the priorities that matter to Connecticut families.”

The state’s pension systems carry roughly $40 billion in unfunded liabilities, a legacy of decades when lawmakers deferred contributions to balance annual budgets. Beginning in 2017, Connecticut adopted stricter contribution requirements that removed political discretion from the process.

That discipline has paid dividends in improved credit ratings. All three major agencies have upgraded Connecticut’s rating in recent years, reducing borrowing costs and signaling renewed confidence in the state’s fiscal management.

Treasurer Russell noted that pension investments have generally met or exceeded actuarial assumptions in recent years, helping close the funding gap faster than projected.

“This isn’t just about numbers on a spreadsheet,” Russell said. “These are the retirement security promises we made to teachers, state workers, and their families. Keeping those promises matters.”

Comptroller Scanlon emphasized that improved fiscal health creates room for strategic investments without jeopardizing long-term stability. His office has pushed for modernization of state financial systems and greater transparency in reporting.

The announcement comes as the Lamont administration prepares its next biennial budget proposal. While pension costs consume a significant portion of state spending, the improved trajectory has created modest flexibility for other priorities.

Legislative leaders from both parties acknowledged the progress while debating what it enables. Democrats have pushed for expanded social services and education funding, while Republicans argue for tax relief and continued fiscal restraint.

“The hard work over the past several years has put us in a much better position,” said House Minority Leader Vincent Candelora. “But we can’t take our eye off the ball. The pension challenge isn’t solved—it’s being managed.”

Bond analysts generally praised Connecticut’s trajectory while noting the state still faces structural challenges including high fixed costs and slower economic growth than many competitor states.