Lamont warned about fund's insolvency

Published on Sunday, 2 December 2018 21:09
Written by The Associated Press

HARTFORD (AP) - Among the challenges Connecticut’s incoming governor faces: an insolvent unemployment compensation fund that could ultimately cost the state’s employers hundreds of millions of additional dollars in payments.

A warning about the condition of the Unemployment Insurance Trust Fund was included in a transition memo the Department of Labor drafted for Democratic Gov.-elect Ned Lamont, who takes office in January.

“The UI Trust Fund, out of which the UI Benefits are paid, is not solvent. The current system of imbalanced Unemployment Insurance tax benefit payouts is not sustainable,” reads the document, obtained by The Associated Press through a public-records request. Departing Democratic Gov. Dannel P. Malloy asked each of his state agency heads to prepare transition reports for his successor.

There is currently $609 million in the trust fund, which is funded by employers. The recommended amount, however, is $1.7 billion to handle an economic downturn.

Posted in New Britain Herald, State on Sunday, 2 December 2018 21:09. Updated: Sunday, 2 December 2018 21:12.