STATE OF CONNECTICUT

BY HER EXCELLENCY

M. JODI RELL

EXECUTIVE ORDER NO. 38

WHEREAS the State of Connecticut provides its employees with pensions and other post-employment benefits such as health care; and

WHEREAS these benefits serve the public interest by attracting and retaining a workforce that protects the health and safety of the State; and

WHEREAS the most recent accounting reports that the State Employees Retirement System is $9.3 billion under funded, and the State Employees Post Retirement Health and Life benefits (“OPEB”) are $24.6 billion under funded; and

WHEREAS the impact of the growth in pension and OPEB liabilities places additional strain on the State’s budget resources as annual contributions comprise over $1 billion of state funds, with the potential to be many times that amount; and

WHEREAS the unfunded liability is considered debt and thus has a negative impact for Connecticut with rating agencies; and

WHEREAS providing additional information, resources and potential short and long term plans to our elected officials will assist them in developing strategies for addressing post-employment liabilities; and

WHEREAS it is my goal as Governor to work with the business community, legislature and other elected officials to find an effective solution to the problem;

NOW, THEREFORE, I, M. JODI RELL, Governor of the State of Connecticut, by virtue of the authority vested in me by the Constitution and Statutes of the State do hereby ORDER AND DIRECT:

1.  That there is established a State Post-Employment Benefits Commission.  

2.  That the Governor shall appoint representatives to the Commission consisting of representatives of the Office of the Treasurer, Office of the Comptroller, the Office of Policy and Management, the Office of Labor Relations, the State Employees Bargaining Agent Coalition, certified public accountants, certified actuaries, and members of the business community.

3. That the Governor shall appoint the Chairperson.

4. That all appointments should be made by February 15, 2010.

5.  That on or before July 1, 2010, the Commission shall deliver a report to the Governor that: 

a.    Identifies the amount and extent of unfunded liabilities for pensions and other post-employment benefits;

b.   Compares and evaluates the advantages and disadvantages of various approaches for addressing unfunded pension liabilities and post-employment benefits; and

c.   Proposes a short and long term plan or plans for addressing unfunded pension liabilities and post-employment benefits.

6.  That State departments and agencies shall cooperate and provide support to the Commission

7.  That the Commission shall comply with applicable Freedom of Information laws, and that all meetings shall take place, whenever possible, in the Legislative Office Building.

8. That this Order shall take effect immediately.

Dated in Hartford, Connecticut, this 3^rd day of February 2010.

By Her Excellency’s Command