Vermont's troubled pension system for state workers and teachers threatens state economy [View all]

Vermont has a big pension problem.

The state is $5.6 billion short of the money needed to pay for pensions and health care promised to teachers and state workers, and the hole is only getting deeper, taking a larger percentage of the state budget.

If Vermont can't stem the bleeding in the budget and the state's credit rating drops as a result, it will hurt every Vermonter by making it harder for the state to borrow money for important projects and services it needs to keep the state moving forward.

Coming up with how to fix what seems like an intractable problem will be the mandate for a task force being formed by the state Legislature. House Speaker Jill Krowinski, D-Burlington, expects a report from the task force by September at the latest, so there's time to deal with the problem next year.

"I will say that understanding our pension system and this unfunded liability is extremely complicated and challenging," Krowinski said.

Read more: https://www.burlingtonfreepress.com/story/money/2021/04/28/vt-teachers-state-workers-face-possible-pension-cuts/4871532001/