Nappier: Lottery-backed bonds could fix teacher pension fund
HARTFORD, Conn. (AP) — Outgoing Connecticut Treasurer Denise Nappier is recommending lottery revenues be used to fix the state’s underfunded teacher retirement fund.
The Democrat suggests Connecticut issue bonds backed by the state lottery. She predicts such a move would generate approximately $1.5 billion in cash that could be deposited into the fund. She is recommending that another $1.5 billion in unidentified state assets be transferred to the fund as well.
The Teacher Retirement Fund currently has a projected unfunded liability of $13 billion.
Democratic Gov.-elect Ned Lamont has said he supports dedicating lottery proceeds to the retirement fund, saying it would represent $5 billion-to-$7 billion in cash flow.
Nappier has warned about Connecticut’s unfunded pension liabilities throughout her 20-year tenure. The teacher pension idea is one of many recommendations she’s making to successors.