Connecticut 2015 Regular Session

Connecticut House Bill HB07047 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		General Assembly Raised Bill No. 7047
2	2		January Session, 2015 LCO No. 4061
3		-	_____~~HB07047APP~~__~~_043015____~~
	3	+	04061_______APP
4	4		Referred to Committee on APPROPRIATIONS
5	5		Introduced by:
6	6		(APP)
7	7
8	8		General Assembly
9	9
10	10		Raised Bill No. 7047
11	11
12	12		January Session, 2015
13	13
14	14		LCO No. 4061
15	15
16		-	_____~~HB07047APP~~__~~_043015____~~
	16	+	04061_______APP
17	17
18	18		Referred to Committee on APPROPRIATIONS
19	19
20	20		Introduced by:
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22	22		(APP)
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24	24		AN ACT CONCERNING RETENTION OF THE COPARTICIPANT OPTION UNDER THE TEACHERS' RETIREMENT SYSTEM AFTER DIVORCE, ELIMINATING THE CAP ON PROFESSIONAL FEES PAID OUT OF THE RETIRED TEACHERS' HEALTH INSURANCE PREMIUM ACCOUNT, CEASING THE CREDITING OF INTEREST ON UNCLAIMED CONTRIBUTIONS FOR INACTIVE MEMBERS OF THE TEACHERS' RETIREMENT SYSTEM AND ELIMINATING CERTAIN OBSOLETE LANGUAGE.
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26	26		Be it enacted by the Senate and House of Representatives in General Assembly convened:
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28	28		Section 1. Subsection (d) of section 10-183j of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2015):
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30	30		(d) The benefits payable to such member and such coparticipant shall be computed as follows:
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32	32		(1) The benefit payable to such member at retirement and to such coparticipant upon such member's death shall be the actuarial equivalent of the normal, early, proratable or disability benefit for which such member is eligible and based upon such member's age at retirement and the age of such coparticipant on such retirement date.
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34	34		(2) The benefit payable to such coparticipant of such member who dies after such option first becomes effective but before retirement shall be the actuarial equivalent of the normal, early or proratable benefit for which such member was eligible based on such member's age at death and the age of such coparticipant on such date of death.
35	35
36	36		(3) [The benefit payable to a] (A) A coparticipant option shall be terminated for any member whose designated coparticipant dies or is divorced from the member, as of the date of such death or divorce, (i) after the effective date of the option but before the retirement or death of such member, [shall be the normal, early, proratable or disability benefit for which the member is eligible. A coparticipant option shall be terminated, for any member whose designated coparticipant dies or is divorced from the member] or (ii) except as provided in subparagraph (B) of this subdivision, after the member's retirement. [, on the date of such death or divorce.] Such member shall thereupon be paid the normal, early [,] or proratable [or disability] retirement benefit for which the member is eligible. (B) On and after July 1, 2015, upon the divorce of a member and such member's designated coparticipant subsequent to the member's retirement, the member may retain the coparticipant designated and the coparticipant option elected at the time of retirement by filing a qualified domestic relations order with the board.
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38	38		Sec. 2. Subsection (d) of section 10-183t of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2015):
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40	40		(d) The Treasurer shall establish a separate retired teachers' health insurance premium account within the Teachers' Retirement Fund. Commencing July 1, 1989, and annually thereafter all health benefit plan contributions withheld under this chapter in excess of five hundred thousand dollars shall, upon deposit in the Teachers' Retirement Fund, be credited to such account. Interest derived from the investment of funds in the account shall be credited to the account. Funds in the account shall be used for (1) payments to boards of education pursuant to subsection (c) of this section and for payment of premiums on behalf of members, spouses of members, surviving spouses of members or disabled dependents of members participating in one or more health insurance plans pursuant to subsection (a) of this section in an amount equal to the difference between the amount paid pursuant to subsection (a) of this section and the amount paid pursuant to subsection (c) of this section, and (2) payments for professional fees associated with the administration of the health benefit plans offered pursuant to this section. [of not more than one hundred fifty thousand dollars annually.] If, during any fiscal year, there are insufficient funds in the account for the purposes of all such payments, the General Assembly shall appropriate sufficient funds to the account for such purpose.
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42	42		Sec. 3. Section 10-183r of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2015):
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44	44		The system shall be funded as follows:
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46	46		(1) Except as provided in subdivision (3) of this [subsection] section, all expenses of the administration of the system, exclusive of payment of benefits, shall be paid for out of amounts appropriated by the General Assembly on certifications and recommendations submitted by the board.
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48	48		(2) The cost of all benefits payable from the system shall be paid out of the retirement fund which shall consist of contributions paid by members, appropriations by the General Assembly based upon certifications and recommendations submitted by the board, the proceeds of bonds held by the system under section 10-183m, the proceeds of bonds issued pursuant to section 10-183qq and earnings of the system.
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50	50		(3) Professional fees associated with the administration of the health benefit plans offered pursuant to section 10-183t, as amended by this act, [of not more than one hundred fifty thousand dollars annually] may be paid for out of the retired teachers' health insurance premium account established pursuant to said section 10-183t.
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52	52		Sec. 4. Section 10-183ee of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2015):
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54	54		(a) After at least twenty-five years have elapsed since a [member] vested member, or ten years have elapsed since a nonvested member, of the teachers' retirement system ceased to be a teacher for any cause other than death or retirement or two years have elapsed from the date any other person became entitled to a benefit pursuant to this chapter, the Teachers' Retirement Board shall send a statement to such member or such person at the last known address of the person setting forth the amount of the accumulated contributions or other benefits standing to the credit of such person. The statement shall give notice to such person that unless payment is demanded of said amount prior to a date at least ninety days from the date the notice is given, the amount will be deemed abandoned and [will be transferred by the retirement board to the pension reserve account within the Teachers' Retirement Fund] no further interest shall be credited to said amount.
55	55
56	56		(b) Any accumulated contributions or other benefits so deemed abandoned [and transferred to the pension reserve account] may be claimed by the person entitled to the accumulated contributions or other benefits, or in the event of his death, by his estate or by such person or persons as he shall have nominated to receive such accumulated contributions, by filing a claim with the retirement board in such form and in such manner as may be prescribed by the retirement board, seeking the return of such abandoned accumulated contributions or other benefits without interest. In the event such claim is properly made the retirement board shall pay over to the person or persons or estate making such claim the amount of such accumulated contributions or other benefits without interest. [The payment shall be made from the pension reserve account.]
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61	61		This act shall take effect as follows and shall amend the following sections:
62	62		Section 1 July 1, 2015 10-183j(d)
63	63		Sec. 2 July 1, 2015 10-183t(d)
64	64		Sec. 3 July 1, 2015 10-183r
65	65		Sec. 4 July 1, 2015 10-183ee
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67	67		This act shall take effect as follows and shall amend the following sections:
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69	69		Section 1
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71	71		July 1, 2015
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73	73		10-183j(d)
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75	75		Sec. 2
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77	77		July 1, 2015
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79	79		10-183t(d)
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81	81		Sec. 3
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83	83		July 1, 2015
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85	85		10-183r
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87	87		Sec. 4
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89	89		July 1, 2015
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91	91		10-183ee
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	93	+	Statement of Purpose:
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	95	+	To permit a member of the teacher's retirement system to retain the coparticipant designated and the coparticipant option elected at the time of retirement after a subsequent divorce, eliminate the annual cap on professional fees paid out of the retired teachers' health insurance premium account, cease crediting interest on unclaimed contributions for inactive members of the teachers' retirement system and eliminate obsolete language concerning the pension reserve account.
94	96
95		-	APP Joint Favorable
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97		-	APP
98		-
99		-	Joint Favorable
	97	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]