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Connecticut governor signs budget that keeps pension costs unchanged

Connecticut Gov. Dannel P. Malloy signed into law on Tuesday the budget agreement reached by members of the General Assembly, said a news release from Mr. Malloy's office.

"The budget makes the full actuarially required contribution payments to the state employee and teachers' pension systems and does not rely on stealing from pensions," the release said.

Prior to the governor's signing, the state had been without an approved budget for more than 120 days.

"While this may be a step in the right direction, make no mistake about it — this is by no means a perfect document and it is not one I would have negotiated," Mr. Malloy said in the news release. "There are real legal and structural issues with the budget presented to me, and I have concerns about the state's ability to keep it in balance over the biennium and beyond."

The Connecticut General Assembly passed a state budget that would not shift teacher pension costs onto towns and cities, confirmed Adam Joseph, spokesman for the Connecticut Senate Democratic Caucus.

In February, Mr. Malloy had proposed shifting a third of the employer costs of the teachers' pensions to the municipalities.

The budget was passed in the state Senate Oct. 26 by a vote of 33-3. It then moved to the House, where it was approved later that day 126-23.

Currently, the state pays 100% of the employer contribution to the $15.8 billion Teachers' Retirement System and the $11 billion Connecticut State Employees Retirement System. The state government is set to contribute $1.3 billion to TRS for the fiscal year 2018 and $1.32 billion for fiscal year 2019, and $1.2 billion to ERS for fiscal year 2018 and $1.32 billion for fiscal year 2019, said Meg Green, a spokeswoman for the governor's office.