Connecticut Deposits $1.5 Billion in State Pensions: Treasurer

Connecticut transferred about $1.5 billion in excess budget reserves to its underfunded state employees’ and teachers’ pensions, bringing extra deposits in the funds to more than $10 billion over the last six years, state Treasurer Erick Russell said Tuesday.

Under a law passed in 2017, Connecticut — which is heavily reliant on Wall Street for income-tax revenue — must stock its rainy-day fund with any capital-gains and bonus taxes that exceed a certain threshold. Once the rainy-day fund reaches 18% of annual spending, any excess is transferred to the pensions.