Planning and Development Committee
JOINT FAVORABLE REPORT
Bill No.: SB-967
AN ACT AUTHORIZING THE BOROUGH OF NAUGATUCK TO ISSUE
Title: PENSION DEFICIT FUNDING BONDS.
Vote Date: 3/21/2021
Vote Action: Joint Favorable
PH Date: 3/5/2021
File No.:
Disclaimer: The following JOINT FAVORABLE Report is prepared for the benefit of the
members of the General Assembly, solely for purposes of information, summarization and
explanation and does not represent the intent of the General Assembly or either chamber
thereof for any purpose.
SPONSORS OF BILL:
N/A
REASONS FOR BILL:
Naugatuck eliminated defined benefit pension plans in 2012 after increased life expectancies
made them unsustainable. This bill aims to authorize the issuing of pension deficit funding
bonds to remedy Naugatucks short-term strain.
RESPONSE FROM ADMINISTRATION/AGENCY:
N/A
NATURE AND SOURCES OF SUPPORT:
Office of N. Warren Pete Hess, Mayor of Naugatuck: Voiced support. The bill would
allow Naugatuck to issue bonds to fund or unfund liabilities in the Boroughs Employee and
Police and Fire Pension Funds. Since 2003, the investment assumption for earnings has
decreased to 7 1/8%, and all actuarially required contributions have been made. Actuaries
have again recommended decreasing the rate to around 3%. Testimony claims the Borough
should now issue general obligation bonds to fill the gap in lower rates.
N. Warren Pete Hess, Mayor of Naugatuck: Voiced support. Claimed this bill would allow
the Borough to issue obligation bonds to fun unfunded liabilities in its Employee and Police
and Fire Pension Funds. The Borough eliminated all defined benefit pension plans in 2012.
As a result, Naugatuck is strained in the short term, but strong in the long, and the bill will
help ease the transition.
Rosa C. Rebimbas, 70th House Dist,; David Labriola,131st House District; Jorge
Cabrera, 17th Senate District; Joan Hartley, 15th Senate District: Voiced support and
echoed the Mayor of Naugatucks statement.
NATURE AND SOURCES OF OPPOSITION:
N/A
Reported by: Colin Savino Date: 3/22/2021
Page 2 of 2 SB-967