NEW YORK (Reuters) - The governor of Connecticut on Tuesday unveiled a plan to reduce the state's $34 billion in unfunded pension and health care liabilities, including capping individual pensions at $100,000 per year.
Governor Jodi Rell, who will leave office next January, proposed establishing a defined contribution plan for new state workers, increasing the retirement age to 65 from 62 and the early retirement age to 60 from 55 and raising the employee contribution.
Rell, a Republican, also proposed that in years when the state loses money on its investments, it would not make a cost-of-living adjustment.
"The problem in Connecticut has accumulated over decades, to the point where we have about $25 billion in unfunded liabilities for retiree health benefits and about $9 billion for retiree pensions," Rell said in a statement.
(Reporting by Edith Honan)
