Testimony of Lori J. Pelletier, Secretary-Treasurer, Connecticut AFL-CIO before the Labor and Public Employees Committee

February 6, 2007

Good Afternoon Senator Prague, Representative Ryan and the Members of the Labor and Public Employees Committee. I am Lori Pelletier and I serve as Secretary-Treasurer of the Connecticut AFL-CIO. I am here on behalf of our 900 affiliated local unions from all across this great state who represent 211,000 working men and women, and I appreciate the invitation to address this committee.

Thank you for the opportunity to speak with you this afternoon regarding the bills you have before your committee.

Proposed S.B. No. 402 AN ACT CREATING AN ADDITIONAL RETIREMENT INCOME OPTION UNDER THE STATE EMPLOYEES RETIREMENT SYSTEM. We support this legislation. Any legislation that corrects a problem or enhances the negotiated retirement benefits of Connecticut’s workers is good law.

Proposed S.B. No. 848 AN ACT CONCERNING LOANS TO MUNICIPALITIES TO FULLY FUND PENSION SYSTEMS. We strongly support this legislation. With nearly 50 cities and towns in Connecticut facing significant unfunded liabilities, we feel this is the least harmful and most cost effective way of addressing and resolving the problem once and for all. This “revolving fund” will allow the municipalities to invest the funds and pay off the indebtedness with less strain on taxpayers.

S.B. No. 1050 (RAISED) AN ACT CONCERNING RETIREMENT BENEFIT OPTIONS FOR SPOUSES OF CERTAIN DECEASED STATE EMPLOYEES. We support this legislation. Spouses of deceased state employees should be allowed to receive their dead spouses pensions while being able to have benefit choices that make sense for them and their families.

S.B. No. 1082 (RAISED) AN ACT CONCERNING ELIMINATION OF STATE FINANCIAL ASSISTANCE FOR COMPANIES THAT REDUCE RETIREMENT BENEFITS. This is important and overdue legislation that would stop a growing and disturbing trend of companies reneging on their retirement promises to their employees. This is a good first step but we must find a way to stop corporate America from stealing retirement benefits earned by their employees.

Proposed H.B. No. 5696 AN ACT CONCERNING FUNDING OF EMPLOYER-SPONSORED RETIREMENT PLANS. We support this legislation though it is sad that we need a law to ensure that businesses notify an employee when they fail to fully fund an employer sponsored retirement plan. This legislation might also be expanded to cover Connecticut’s municipalities. So we don’t end up in another “Waterbury” type situation.

Proposed H.B. No. 5707 AN ACT PROHIBITING THE DIMINISHMENT OR ELIMINATION OF MUNICIPAL RETIREE BENEFITS. We support this legislation, though, we feel that it might be redundant based on a bill signed into law last year.

HB. No. 6958 (RAISED) AN ACT EXTENDING HAZARDOUS DUTY RETIREMENT BENEFITS FOR CLERICAL WORKERS AT CORRECTIONAL INSTITUTIONS. Support

H.B. No. 6988 (RAISED) AN ACT UPDATING THE SOCIAL SECURITY RETIREMENT AGE TO REFLECT FEDERAL CHANGES. We strongly support this legislation. It’s only effect will be to bring Connecticut law up to the harsh reality of an increasing retirement age. The benefit is intended to be a retirement supplement until full retirement which traditionally was at age 65. Retirement age is increasing and the state law has not been updated to keep up with this change. This is an important and necessary modification.