Earlier this year, Governor Malloy presented a proposed budget to the state legislature that includes passing on part of the cost of teacher retirements to the towns. That proposal would expect each town to pay one third of the cost of the state’s retirement allocation based on the actual number of teachers currently employed in that town. For Regional school systems, each town would also accrue costs proportional to the number of students enrolled multiplied by the number of regional teachers. Thus, the cost for the high school and special education teachers employed by Region 1 would pass to each town by the appropriate average daily enrollments.
By town, the expected additional cost to the budget would be:
|Town||Teacher Retirement Cost|
The actual calculation is complicated by certain accounting assumptions like expected return on investments, and may be greater when the actual bill comes due to each town by January 15, 2018. Further, the allocation is proportional to the state allocation (how much they pay each year into the fund), and is subject to whim. Also, because the legislative session runs to June 7, 2017, the towns cannot expect to know the actual cost until after they have adopted their budgets. Further, the costs are expected to increase by 3.2% to 11.7% each year thereafter with no obvious rhyme or reason.