As a result of prudent management and Treasurer
Denise L. Nappier's reforms, the Fund eliminated all debt by 2005, 11 years earlier than anticipated. This elimination resulted in a total savings of $646.5 million in borrowing costs.
The historical sequence of the Second Injury's debt elimination is:
- April 2000 - Under the Nappier alternative financing plan, debt service payments remained below $27 million per year, a savings of $501 million.
- October 2000 - A resultant rating upgrade and bond sale yielded $103.5 million in cost savings.
- By using excess cash to pay off commercial paper, the Fund eliminated all short-term commercial paper debt.
- June 2002, 2003 & 2004 - Used excess cash of $47.8, $33.8 and $46.5 million respectively, to pay down bonded debt.
- June 2005 - As a result of Fiscal Year 2005 operations the Fund used cash flow to defease long-term debt of $46.4 million in bonds that remained outstanding from the original debt. This initiative saved Connecticut employers $45 million in future interest costs.