Hartford Business Journal

6 Hartford Business Journal • November 16, 2015 www.HartfordBusiness.com TOP STORY OPM: Split pension system, reduce investment expectations Facing a future of escalating pension costs that could imperil the state budget, Office of Policy and Management Secretary Benjamin Barnes recom- mended last week that the state make significant changes to its retirement system for state workers and teachers. The changes would lengthen the amount of years it would take the state to fully fund its pension system, which currently has a $26 billion unfunded liability. Pushing that deadline past 2032 could reduce annual impacts to the state budget. Barnes based his recommendations on a commissioned report from Bos- ton College's Center for Retirement Research, which suggested splitting the state-employee fund into two funds, making one a closed, "pay-as-you-go" plan for more expensive long-time retirees, and the other an open plan for active employees, funded on an actuarial basis. Barnes also wants to lower investment-return expectations in the em- ployee and teacher plans, which will require greater annual contributions in the near term, but help avoid a spike in annual contributions around 2032. MANUFACTURING Colt reorganization could be voted on this week West Hartford-based Colt Defense could see its bankruptcy reorganization plan voted on by creditors as early as this week. The financially troubled gun- maker received approval last week of its reorganization disclosure plan in fed- eral bankruptcy court. The plan, according to a statement from Colt, reflects a consensus reached among its key stakeholders, including a consortium of secured lenders, Morgan Stanley, a committee of unsecured creditors, Sciens Capital Management and Colt's West Hartford landlord. In June, Colt received a $20 million credit line that allowed the gun manu- facturer to continue operations during its Chapter 11 restructuring. Colt filed for Chapter 11 in June after an alternate plan to convince shareholders to exchange their existing bonds for longer-term bonds with higher interest rates failed. Kaman makes two acquisitions Bloomfield's Kaman Corp. announced two acquisitions last week. First it signed a definitive agreement to acquire substantially all the assets of Calkins Fluid Pow- er Inc., a Washington-based distributor of fluid power components and systems. It also agreed to purchase GRW, a German manufacturer of precision, mina- ture ball bearings. Terms of both deals weren't disclosed. GRW makes bearings that produce low noise and can withstand extreme temperatures and caustic environments. The company has production facilities in Germany and Czech Republic. Calkins, a 95-year-old firm, is a distributor of mobile and industrial hydrau- lics, filtration and pneumatics products. The firm also designs and integrates hydraulic power units and systems. Pratt engines pass first flight test for new regional jets Pratt & Whitney's PurePower engines have successfully powered the Mit- subishi Regional Jet in its first flight in Nagoya, Japan. Mitsubishi was the first airframer to select the PurePower Geared Turbofan engine. The PurePower engine has more than 23,000 hours of testing, including 40,000 cycles. Pratt & Whitney now has three PurePower engines powering the next-generation of aircraft. The PurePower Geared Turbofan engine family has about 7,000 orders, in- cluding options, with more than 70 customers from more than 30 countries. In January, Pratt & Whitney inked a risk and revenue-sharing agreement for its PurePower Geared Turbofan engines with Japanese heavy equipment maker Kawa- saki Heavy Industries. Under the deal, which aerospace contractors use to spread out their financial risk, Kawasaki will provide hardware modules for the engines. LAW Bill Crowe, crew joining Rogin Nassau Veteran Hartford real estate lawyer William R. "Bill" Crowe, along with several more attorneys and staff, are breaking from their downtown law firm due to "philosophical differences" and will join venerable Connecticut law firm Rogin Nassau LLC, effective New Year's Day. Crowe, a named partner in Mayo Crowe LLC, confirmed last week that he and five other real estate attorneys and two paralegals are preparing to relocate their offices and practices from the 15th floor of CityPlace II over to the 22nd floor of CityPlace I, where Rogin Nassau is housed. Crowe declined to comment on reasons for the split. Meantime, the remaining partners/principals have rechristened their firm as Hoopes Morganthaler Rausch & Scaramozza LLC. Partner David Hoopes said the firm's commitments to its clients remain in place and unchanged. Hoopes said "philosophical differences between the part- ners and former partners'' is the reason for the split, and that he and Crowe are still friends. ENERGY & UTILITIES DEEP wants to redevelop Hartford waste-to-energy facility The state Department of Energy and Environmental Protection has issued a re- quest for proposals to redevelop the waste-to-energy facility in Hartford as well as other facilities that have been operated by the Materials Innovation and Recycling Authority — formerly known as the Connecticut Resource Recovery Authority. The legislature passed a bill last year that aims to reduce Connecticut's long- term reliance on burning trash. Part of that bill calls for the Hartford plant to be run by a private operator. Through the RFP, the state hopes to develop a new system, including new technologies that will assist the state in reaching its goal to divert 60 percent of materials currently burned or sent to landfills. Responses for the RFP are due by March 1. HEALTH CARE Hartford Healthcare to sell clinical-lab service New Jersey's Quest Diagnostics said it will acquire a clinical-testing lab ser- vice owned by a Hartford Healthcare subsidiary. Quest Diagnostics will acquire the outreach laboratory service business of Clinical Laboratory Partners, the two sides announced last week. Terms of the deal weren't disclosed. Clinical Laboratory Partners is a wholly-owned subsidiary of Hartford Health- care (HHC), which owns five Connecticut hospitals, including Hartford Hospital and the Hospital of Central Connecticut. CLP provides clinical-lab testing to physicians in Connecticut, acting as the outreach laboratory services provider for HHC. Under the agreement, CLP will transition laboratory testing now provided by its lab in Newington, to Quest's rapid-response clinical laboratories in Stratford, Torrington and Wallingford, and full-service clinical laboratory in Marlborough, Mass. EDUCATION New CT education standards focus on technical skills The state Department of Education has issued new, more rigorous and real- world science standards, called the Next Generation Science Standards. They aim to prepare students for future employment and set Connecticut up for long- term growth in high-tech STEM-based industries. A major component of the renewed focus on science, technology, engineer- ing and math (STEM) education is an emphasis on career and technology edu- cation, which prepare students to be college and career ready by providing core academic skills, employability skills and technical, job-specific skills. The standards were developed by 26 states based on recommendations by the National Academy of Science. Their goal is to get more students interested in science and engineering by emphasizing their connections to understanding our world and to solving human challenges. BY THE NUMBERS $8.9B The portion of Connecticut's $25.7 billion unfunded pension liability that has been created by lower-than-assumed investment returns since 2000, according to a new report. 98 minutes The average wait time at the Department of Motor Vehicles in the final week of September, up from 37 minutes a year prior, according to the Hartford Courant. $648M The potential size of Connecticut's 2016-2017 budget gap, according to an analysis by the Connecticut Mirror. $1.3M The average listing price for a four-bedroom, three-bathroom home in Greenwich, which is almost 10 times higher than a comparable home in Hartford, according to Coldwell Banker. TOP 5 MOST READ on HartfordBusiness.com ■ Food market set next to 777 Main apts. ■ Bill Crowe, crew joining Rogin Nassau ■ What are CT's most affordable, expensive housing markets? ■ Hartford Healthcare to sell clinical lab service to Quest Diagnostics ■ Proposed casino receives five bids in four towns STAY CONNECTED For breaking and daily Greater Hartford business news go to www.HartfordBusiness.com. HBJ on Twitter: @HartfordBiz HBJ on Facebook: www.facebook.com/HartfordBiz HBJ on LinkedIn: www.linkedin.com/company/ the-Hartford-Business-Journal Daily e-newsletters: HBJ Today, CT Morning Blend www.HartfordBusiness.com/subscribe Weekly e-newsletters: CT Green Guide Weekly www.HartfordBusiness.com/subscribe WEEK IN REVIEW P H O T O | H B J F I L E Benjamin Barnes, Secretary, Office of Policy and Management Colt Defense is looking to emerge from bankruptcy.

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