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Connecticut won’t default on pension bonds, budget director says

MARCH 20, 2018 | by Martin Braun | BLOOMBERG

By Martin Braun, includes “Connecticut Treasurer Denise Nappier warned that Malloy’s proposal to stretch out payments on the teachers’ pension’s unfunded liability beyond 2032 to sidestep a potential $5 billion payment increase would trigger a technical default. .., A covenant in a $2.1 billion pension bond issue from 2008 requires the state to appropriate the full annual contribution to the pension and amortize its unfunded liability through 2032, the year the bonds mature.”

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