General Assembly Raised Bill No. 267
February Session, 2016 LCO No. 1880
*01880_______APP*
Referred to Committee on APPROPRIATIONS
Introduced by:
(APP)
General Assembly
Raised Bill No. 267
February Session, 2016
LCO No. 1880
*01880_______APP*
Referred to Committee on APPROPRIATIONS
Introduced by:
(APP)
AN ACT MAKING CHANGES TO THE TEACHERS' RETIREMENT SYSTEM TO ALLOW RETENTION OF THE PLAN D COPARTICIPANT OPTION AFTER DIVORCE AND TO CEASE CREDITING INTEREST ON CERTAIN INACTIVE, NONVESTED MEMBERS, AND ELIMINATING CERTAIN OBSOLETE LANGUAGE.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
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 Subsection (d) of section 10-183j of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2016):
(d) The benefits payable to such member and such coparticipant shall be computed as follows:
(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 [,] or 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.
(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.
(3) [The benefit payable to a member whose designated coparticipant dies or is divorced from the member 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] (A) Except as provided in subparagraph (B) of this subdivision, a coparticipant option shall be terminated, for any member whose designated coparticipant dies or is divorced from the member 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, 2016, upon the divorce of a member and such member's designated coparticipant subsequent to the member's retirement, the member may retain the coparticipant designation and the coparticipant option elected at the time of retirement by filing a qualified domestic relations order with the board.
Sec. 2. Section 10-183ee of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2016):
(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.
(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.]
This act shall take effect as follows and shall amend the following sections:
Section 1 July 1, 2016 10-183j(d)
Sec. 2 July 1, 2016 10-183ee
This act shall take effect as follows and shall amend the following sections:
Section 1
July 1, 2016
10-183j(d)
Sec. 2
July 1, 2016
10-183ee
Statement of Purpose:
To permit a member of the teachers' retirement system to retain the coparticipant designation and the coparticipant option elected at the time of retirement after a subsequent divorce, cease crediting interest on unclaimed contributions for inactive, nonvested members of the teachers' retirement system and eliminate obsolete language concerning the pension reserve account.
[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.]