The Democratic speaker of the Vermont House of Representatives said Friday she’ll delay until next year any reforms to the state pension system, which is facing a multibillion dollar shortfall.
Instead, Speaker Jill Krowinski said she would like to see a task force created to seek long-term solutions to address the shortfall, and she would like to see changes to the board that makes investment decisions.
The task force would propose changes that could be acted upon next year.
She said finding solutions to the shortfall has been made harder by the pandemic when lawyers couldn’t meet in person.
“My goal all along has been to save this pension system to make sure that our state employees and our teachers can retire with peace of mind,” Krowinski said during a briefing with reporters. “So we are going to continue to do the hard work so we can save our pension system.”
Gov. Phil Scott said later Friday he was disappointed the Legislature was delaying action on the pension this year.
“This is a huge problem for our state, that is going to effect everyone in years to come,” Scott said. “It’s a $5.7 billion unfunded liability that has to be dealt with because if we don’t, we are going to be facing insolvency and that’s something we can’t let happen.”
But Krowinski’s decision to delay action was praised by the Vermont chapter of the National Education Association, the state’s largest teachers union.
“Throughout the pandemic - and before - educators have kept their promise to Vermont’s students,” said a statement by Vermont NEA President Don Tinney. “We look forward to working with all stakeholders to ensure that the state keeps its promise of a secure retirement to teachers and all public employees.”
Senate President Pro Tem Becca Balint said she would work with Krowinski and the House to save the pension system.
“I think this is the right path forward and strikes a balance between taking steps to prevent a crisis and acknowledging how difficult this discussion is and how thoughtful our work must be,” Balint said in a statement.
The Legislature is appropriating $300 million this year to help prop up the pension system. They’d also like to set aside for the pension an addition $150 million in state funds made available by the latest federal coronavirus relief package.
Last month, lawmakers proposed a plan to cut retirement benefits to teachers and state employees by making them stay in the workforce longer and receive fewer benefits. But the idea was fiercely opposed by the unions representing those workers.
Scott said he was willing to work with lawmakers to find a solution, but it was up to lawmakers.
“This is their responsibility as the majority party to get something done,” Scott said, noting he didn’t believe lawmakers would approve of anything he would propose.
Scott, who three years ago signed the state’s first significant gun control restrictions in the face of fierce opposition from gun rights advocates, said he understands what it means to take controversial decisions that are unpopular with your political base.
“This is the time to have some courage and stand up and do what you know is right for our state,” Scott said.
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