Connecticut 2019 Regular Session

Connecticut Senate Bill SB00882 Compare Versions

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	7	+	General Assembly Substitute Bill No. 882
	8	+	January Session, 2019
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4		-	Substitute Senate Bill No. 882
5		-
6		-	Public Act No. 19-124
7		-
8		-
9		-	AN ACT CONCERNING TH E MUNICIPAL EMPLOYEE S'
10		-	RETIREMENT SYSTEM AN D AUTHORIZING BONDIN G FOR THE
11		-	CITY OF BRIDGEPORT'S PENSION PLAN A FUND.
	12	+	AN ACT CONCERNING MU NICIPAL ARBITRATION AND THE
	13	+	MUNICIPAL EMPLOYEES' RETIREMENT SYSTEM.
12	14		Be it enacted by the Senate and House of Representatives in General
13	15		Assembly convened:
14	16
15		-	Section 1. Section 7-440 of the general statutes is repealed and the
16		-	following is substituted in lieu thereof (Effective July 1, 2019):
17		-	(a) Each member shall contribute to the fund five per cent of his pay
18		-	as to that portion of pay with respect to which contributions are not to
19		-	be deducted under section 7-453 and two and one-quarter per cent as
20		-	to that portion of pay with respect to which contributions are to be so
21		-	deducted, to be deducted from such pay by the municipality and
22		-	forwarded not less frequently than once a month to the Retirement
23		-	Commission to be credited to the fund.
24		-	(b) For the fiscal year beginning July 1, 2019, each member shall
25		-	contribute to the fund five and one-half per cent of such member's pay
26		-	as to that portion of pay with respect to which contributions are not to
27		-	be deducted under section 7-453 and two and three-quarters per cent
28		-	as to that portion of pay with respect to which contributions are to be
29		-	so deducted from such pay by the municipality and forwarded not less
30		-	frequently than once a month to the Retirement Commission to be Substitute Senate Bill No. 882
	17	+	Section 1. Subsections (a) and (b) of section 7-473c of the general 1
	18	+	statutes are repealed and the following is substituted in lieu thereof 2
	19	+	(Effective July 1, 2019): 3
	20	+	(a) (1) The Labor Commissioner shall appoint a Neutral Arbitrator 4
	21	+	Selection Committee consisting of ten members, five of whom shall 5
	22	+	represent the interests of employees and employee organizations and 6
	23	+	five of whom shall represent the interests of municipal employers, 7
	24	+	provided one of the members representing the interests of municipal 8
	25	+	employers shall be a representative of the Connecticut Conference of 9
	26	+	Municipalities. The members of the selection committee shall serve for 10
	27	+	a term of four years. Arbitrators may be removed for good cause. [The] 11
	28	+	(2) Before July 1, 2019, the selection committee shall appoint a panel 12
	29	+	of neutral arbitrators consisting of not less than twenty impartial 13
	30	+	persons representing the interests of the public in general to serve as 14
	31	+	provided in this section. Each member of the panel shall be a resident 15
	32	+	of the state and shall be selected by a unanimous vote of the selection 16
	33	+	committee. The members of the panel shall serve for a term of two 17
	34	+	years, except that the term of any such member appointed before July 18
	35	+	1, 2019, shall terminate on said date. 19 Substitute Bill No. 882
31	36
32		-	Public Act No. 19-124 2 of 5
33	37
34		-	credited to the fund.
35		-	(c) For the fiscal year beginning July 1, 2020, each member shall
36		-	contribute to the fund six per cent of such member's pay as to that
37		-	portion of pay with respect to which contributions are not to be
38		-	deducted under section 7-453 and three and one-quarter per cent as to
39		-	that portion of pay with respect to which contributions are to be so
40		-	deducted, to be deducted from such pay by the municipality and
41		-	forwarded not less frequently than once a month to the Retirement
42		-	Commission to be credited to the fund.
43		-	(d) For the fiscal year beginning July 1, 2021, each member shall
44		-	contribute to the fund six and one-half per cent of such member's pay
45		-	as to that portion of pay with respect to which contributions are not to
46		-	be deducted under section 7-453 and three and three-quarters per cent
47		-	as to that portion of pay with respect to which contributions are to be
48		-	so deducted from such pay by the municipality and forwarded not less
49		-	frequently than once a month to the Retirement Commission to be
50		-	credited to the fund.
51		-	(e) For the fiscal year beginning July 1, 2022, each member shall
52		-	contribute to the fund seven per cent of such member's pay as to that
53		-	portion of pay with respect to which contributions are not to be
54		-	deducted under section 7-453 and four and one-quarter per cent as to
55		-	that portion of pay with respect to which contributions are to be so
56		-	deducted from such pay by the municipality and forwarded not less
57		-	frequently than once a month to the Retirement Commission to be
58		-	credited to the fund.
59		-	(f) For the fiscal year beginning July 1, 2023, each member shall
60		-	contribute to the fund seven and one-half per cent of such member's
61		-	pay as to that portion of pay with respect to which contributions are
62		-	not to be deducted under section 7-453 and four and three-quarters per
63		-	cent as to that portion of pay with respect to which contributions are to Substitute Senate Bill No. 882
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	42	+	(3) On and after July 1, 2019, the selection committee shall appoint a 20
	43	+	panel of neutral arbitrators consisting of not less than ten impartial 21
	44	+	persons representing the interests of the public in general to serve as 22
	45	+	provided in this section. Each member of the panel shall be a resident 23
	46	+	of the state and shall be selected by a unanimous vote of the selection 24
	47	+	committee. The members of the panel shall serve for a term of five 25
	48	+	years. 26
	49	+	(b) (1) If neither the municipal employer nor the municipal 27
	50	+	employee organization has requested the arbitration services of the 28
	51	+	State Board of Mediation and Arbitration (A) within one hundred 29
	52	+	eighty days after the certification or recognition of a newly certified or 30
	53	+	recognized municipal employee organization required to commence 31
	54	+	negotiations pursuant to section 7-473a, or (B) within thirty days after 32
	55	+	the expiration of the current collective bargaining agreement, or within 33
	56	+	thirty days after the specified date for implementation of reopener 34
	57	+	provisions in an existing collective bargaining agreement, or within 35
	58	+	thirty days after the date the parties to an existing collective bargaining 36
	59	+	agreement commence negotiations to revise said agreement on any 37
	60	+	matter affecting wages, hours, and other conditions of employment, 38
	61	+	said board shall notify the municipal employer and municipal 39
	62	+	employee organization that one hundred eighty days have passed 40
	63	+	since the certification or recognition of the newly certified or 41
	64	+	recognized municipal employee organization, or that thirty days have 42
	65	+	passed since the specified date for implementation of reopener 43
	66	+	provisions in an existing agreement, or the date the parties 44
	67	+	commenced negotiations to revise an existing agreement on any matter 45
	68	+	affecting wages, hours and other conditions of employment or the 46
	69	+	expiration of such collective bargaining agreement and that binding 47
	70	+	and final arbitration is now imposed on them, provided written 48
	71	+	notification of such imposition shall be sent by registered mail or 49
	72	+	certified mail, return receipt requested, to each party. 50
	73	+	(2) Within ten days of receipt of the written notification required 51
	74	+	pursuant to subdivision (1) of this subsection, the chief executive 52 Substitute Bill No. 882
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67		-	be so deducted from such pay by the municipality and forwarded not
68		-	less frequently than once a month to the Retirement Commission to be
69		-	credited to the fund.
70		-	(g) For the fiscal year beginning July 1, 2024, and each year
71		-	thereafter, each member shall contribute to the fund eight per cent of
72		-	such member's pay as to that portion of pay with respect to which
73		-	contributions are not to be deducted under section 7-453 and five and
74		-	one-quarter per cent as to that portion of pay with respect to which
75		-	contributions are to be so deducted from such pay by the municipality
76		-	and forwarded not less frequently than once a month to the Retirement
77		-	Commission to be credited to the fund.
78		-	(h) In the case of members serving with the armed forces of the
79		-	United States in time of war, hostilities or national emergency or any
80		-	acts incident thereto, as provided in section 7-434, the municipality
81		-	shall forward to the Retirement Commission to be credited to the fund
82		-	a like contribution on behalf of such member based upon his pay at the
83		-	time of entering such service. Any member leaving the employment of
84		-	the municipality before becoming eligible for retirement may
85		-	withdraw on request to the Retirement Commission the total of all
86		-	contributions made by him, including contributions made to another
87		-	system and transferred to the Municipal Employees' Retirement Fund
88		-	under the provisions of section 7-442b, less any retroactive
89		-	contributions payable by such member under section 7-453 to the Old
90		-	Age and Survivors Insurance System which have been paid from the
91		-	fund under the provisions of section 7-451, provided, if no request is
92		-	made within ten years, such contributions shall revert to the fund. The
93		-	withdrawal of contributions shall include interest credited from July 1,
94		-	1983, or the first of the fiscal year following the date of actual
95		-	contribution, whichever is later, to the first of the fiscal year coincident
96		-	with or preceding the date the employee leaves municipal service.
97		-	Such interest shall be credited at the rate of five per cent per year. In Substitute Senate Bill No. 882
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101		-	addition, for the partial year during which the employee leaves
102		-	municipal service or withdraws his contributions, whichever is later,
103		-	interest shall be credited at the rate of five-twelfths of one per cent
104		-	multiplied by the full number of months completed during that year,
105		-	such interest rate to be applied to the value of contributions including
106		-	any prior interest credits as of the first day of that year. Any employee
107		-	who withdraws his contributions from the fund and is subsequently
108		-	reinstated shall not receive credit for service for such prior
109		-	employment in the computation of his eventual retirement allowance
110		-	unless the withdrawn contributions plus interest, if any, have been
111		-	repaid with additional interest at a rate to be determined by the
112		-	commission. Any municipality which has made contributions on
113		-	behalf of any member serving in the armed forces who is not
114		-	reemployed by the municipality within six months following the
115		-	termination of such service, unless this period is further extended by
116		-	reason of disability incurred in such service, shall be entitled to receive
117		-	from the fund on application to the Retirement Commission the
118		-	amount of such contributions. Any municipality which has made
119		-	contributions in accordance with subsection (b) of section 7-436b on
120		-	behalf of any member who leaves the employment of the municipality
121		-	and withdraws from the municipal employees' retirement system
122		-	before becoming eligible for retirement shall be entitled to receive from
123		-	the fund on application to the Retirement Commission the amount of
124		-	such contributions. In case of the death of a member before retirement,
125		-	who has not elected a retirement income option in accordance with the
126		-	provisions of this part or who has made such election but has not
127		-	completed the age and service requirements that would permit him to
128		-	retire on his own application, or after retirement without having made
129		-	such election, or in case of the death of the survivor of a member who
130		-	has made such election and his spouse after a retirement allowance has
131		-	become payable, his contributions to the fund plus such five per cent
132		-	interest, if any, less any retirement allowance paid to him or his
133		-	spouse, and less any retroactive contributions paid by such member to Substitute Senate Bill No. 882
	81	+	officer of the municipal employer and the executive head of the 53
	82	+	municipal employee organization each shall select one member of the 54
	83	+	arbitration panel. Within five days of their appointment, the [two 55
	84	+	members of the arbitration panel] State Board of Mediation and 56
	85	+	Arbitration shall select a third member, who shall be an impartial 57
	86	+	representative of the interests of the public in general and who shall be 58
	87	+	selected at random from the panel of neutral arbitrators appointed 59
	88	+	pursuant to subsection (a) of this section. Such third member shall be 60
	89	+	the chairperson of the panel. 61
	90	+	(3) In the event that the municipal employer or the municipal 62
	91	+	employee organization have not selected their respective members of 63
	92	+	the arbitration panel, [or the two members of the panel have not 64
	93	+	selected the third member,] the State Board of Mediation and 65
	94	+	Arbitration shall appoint such members as are needed to complete the 66
	95	+	panel, provided (A) the member or members so appointed are 67
	96	+	residents of this state, and (B) the selection of the third member of the 68
	97	+	panel by the State Board of Mediation and Arbitration shall be made at 69
	98	+	random from among the members of the panel of neutral arbitrators 70
	99	+	appointed pursuant to subsection (a) of this section. 71
	100	+	Sec. 2. Section 7-440 of the general statutes is repealed and the 72
	101	+	following is substituted in lieu thereof (Effective July 1, 2019): 73
	102	+	(a) Each member shall contribute to the fund five per cent of his pay 74
	103	+	as to that portion of pay with respect to which contributions are not to 75
	104	+	be deducted under section 7-453 and two and one-quarter per cent as 76
	105	+	to that portion of pay with respect to which contributions are to be so 77
	106	+	deducted, to be deducted from such pay by the municipality and 78
	107	+	forwarded not less frequently than once a month to the Retirement 79
	108	+	Commission to be credited to the fund. 80
	109	+	(b) For the fiscal year beginning July 1, 2019, each member shall 81
	110	+	contribute to the fund six per cent of such member's pay as to that 82
	111	+	portion of pay with respect to which contributions are not to be 83
	112	+	deducted under section 7-453 and three and one-quarter per cent as to 84 Substitute Bill No. 882
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135		-	Public Act No. 19-124 5 of 5
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137		-	the Old Age and Survivors Insurance System which have been paid
138		-	from the fund under the provisions of section 7-451, shall be paid from
139		-	the fund on the order of the Retirement Commission to the beneficiary
140		-	or beneficiaries, if any, named by such member. If no named
141		-	beneficiaries survive the member, or the survivor of the member and
142		-	his spouse, payment shall be made to the executors or administrators
143		-	of such member or his spouse, as the case may be, except that, if the
144		-	amount is less than five hundred dollars, the refund may be made, at
145		-	the option of the Retirement Commission, in accordance with the
146		-	terms of section 45a-273.
147		-	Sec. 2. (Effective from passage) (a) Notwithstanding the charter or any
148		-	ordinance of the city of Bridgeport or any provisions of the general
149		-	statutes or special act, the city of Bridgeport is authorized to issue
150		-	bonds in an amount not to exceed one hundred twenty-five million
151		-	dollars plus the costs of issuances of such bonds for the purpose of
152		-	funding the city of Bridgeport's Pension Plan A Fund. Such bonds shall
153		-	be "pension deficit funding bonds", as defined in section 7-374c of the
154		-	general statutes, but shall not be subject to the provisions of subsection
155		-	(b) or (e) of said section.
156		-	(b) Such bonds shall mature not more than twenty-five years from
157		-	the date of issuance and shall be subject to the provisions of chapter
158		-	109 of the general statutes, except the provisions of (1) section 7-371 of
159		-	the general statutes concerning the date of the first maturity and the
160		-	amount of any installment of principal or principal and interest, and
161		-	(2) subsection (e) of section 7-374c of the general statutes concerning
162		-	the date of the first maturity and the amount of any installment of
163		-	principal or principal and interest, provided the first principal
164		-	payment on such bonds shall be made not later than ten years from the
165		-	date of issuance of such bonds.
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	118	+
	119	+	that portion of pay with respect to which contributions are to be so 85
	120	+	deducted from such pay by the municipality and forwarded not less 86
	121	+	frequently than once a month to the Retirement Commission to be 87
	122	+	credited to the fund. 88
	123	+	(c) For the fiscal year beginning July 1, 2020, each member shall 89
	124	+	contribute to the fund seven per cent of such member's pay as to that 90
	125	+	portion of pay with respect to which contributions are not to be 91
	126	+	deducted under section 7-453 and four and one-quarter per cent as to 92
	127	+	that portion of pay with respect to which contributions are to be so 93
	128	+	deducted, to be deducted from such pay by the municipality and 94
	129	+	forwarded not less frequently than once a month to the Retirement 95
	130	+	Commission to be credited to the fund. 96
	131	+	(d) For the fiscal year beginning July 1, 2021, each member shall 97
	132	+	contribute to the fund eight per cent of such member's pay as to that 98
	133	+	portion of pay with respect to which contributions are not to be 99
	134	+	deducted under section 7-453 and five and one-quarter per cent as to 100
	135	+	that portion of pay with respect to which contributions are to be so 101
	136	+	deducted from such pay by the municipality and forwarded not less 102
	137	+	frequently than once a month to the Retirement Commission to be 103
	138	+	credited to the fund. 104
	139	+	(e) In the case of members serving with the armed forces of the 105
	140	+	United States in time of war, hostilities or national emergency or any 106
	141	+	acts incident thereto, as provided in section 7-434, the municipality 107
	142	+	shall forward to the Retirement Commission to be credited to the fund 108
	143	+	a like contribution on behalf of such member based upon his pay at the 109
	144	+	time of entering such service. Any member leaving the employment of 110
	145	+	the municipality before becoming eligible for retirement may 111
	146	+	withdraw on request to the Retirement Commission the total of all 112
	147	+	contributions made by him, including contributions made to another 113
	148	+	system and transferred to the Municipal Employees' Retirement Fund 114
	149	+	under the provisions of section 7-442b, less any retroactive 115
	150	+	contributions payable by such member under section 7-453 to the Old 116
	151	+	Age and Survivors Insurance System which have been paid from the 117 Substitute Bill No. 882
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	158	+	fund under the provisions of section 7-451, provided, if no request is 118
	159	+	made within ten years, such contributions shall revert to the fund. The 119
	160	+	withdrawal of contributions shall include interest credited from July 1, 120
	161	+	1983, or the first of the fiscal year following the date of actual 121
	162	+	contribution, whichever is later, to the first of the fiscal year coincident 122
	163	+	with or preceding the date the employee leaves municipal service. 123
	164	+	Such interest shall be credited at the rate of five per cent per year. In 124
	165	+	addition, for the partial year during which the employee leaves 125
	166	+	municipal service or withdraws his contributions, whichever is later, 126
	167	+	interest shall be credited at the rate of five-twelfths of one per cent 127
	168	+	multiplied by the full number of months completed during that year, 128
	169	+	such interest rate to be applied to the value of contributions including 129
	170	+	any prior interest credits as of the first day of that year. Any employee 130
	171	+	who withdraws his contributions from the fund and is subsequently 131
	172	+	reinstated shall not receive credit for service for such prior 132
	173	+	employment in the computation of his eventual retirement allowance 133
	174	+	unless the withdrawn contributions plus interest, if any, have been 134
	175	+	repaid with additional interest at a rate to be determined by the 135
	176	+	commission. Any municipality which has made contributions on 136
	177	+	behalf of any member serving in the armed forces who is not 137
	178	+	reemployed by the municipality within six months following the 138
	179	+	termination of such service, unless this period is further extended by 139
	180	+	reason of disability incurred in such service, shall be entitled to receive 140
	181	+	from the fund on application to the Retirement Commission the 141
	182	+	amount of such contributions. Any municipality which has made 142
	183	+	contributions in accordance with subsection (b) of section 7-436b on 143
	184	+	behalf of any member who leaves the employment of the municipality 144
	185	+	and withdraws from the municipal employees' retirement system 145
	186	+	before becoming eligible for retirement shall be entitled to receive from 146
	187	+	the fund on application to the Retirement Commission the amount of 147
	188	+	such contributions. In case of the death of a member before retirement, 148
	189	+	who has not elected a retirement income option in accordance with the 149
	190	+	provisions of this part or who has made such election but has not 150
	191	+	completed the age and service requirements that would permit him to 151
	192	+	retire on his own application, or after retirement without having made 152 Substitute Bill No. 882
	193	+
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	199	+	such election, or in case of the death of the survivor of a member who 153
	200	+	has made such election and his spouse after a retirement allowance has 154
	201	+	become payable, his contributions to the fund plus such five per cent 155
	202	+	interest, if any, less any retirement allowance paid to him or his 156
	203	+	spouse, and less any retroactive contributions paid by such member to 157
	204	+	the Old Age and Survivors Insurance System which have been paid 158
	205	+	from the fund under the provisions of section 7-451, shall be paid from 159
	206	+	the fund on the order of the Retirement Commission to the beneficiary 160
	207	+	or beneficiaries, if any, named by such member. If no named 161
	208	+	beneficiaries survive the member, or the survivor of the member and 162
	209	+	his spouse, payment shall be made to the executors or administrators 163
	210	+	of such member or his spouse, as the case may be, except that, if the 164
	211	+	amount is less than five hundred dollars, the refund may be made, at 165
	212	+	the option of the Retirement Commission, in accordance with the 166
	213	+	terms of section 45a-273. 167
	214	+	Sec. 3. (Effective July 1, 2019) Not later than December 1, 2019, the 168
	215	+	Connecticut Advisory Commission on Intergovernmental Relations 169
	216	+	established pursuant to section 2-79a of the general statutes, in 170
	217	+	consultation with the Connecticut State Employees Retirement 171
	218	+	Commission established pursuant to section 5-155a of the general 172
	219	+	statutes, shall submit a report to the Secretary of the Office of Policy 173
	220	+	and Management. Such report shall contain recommendations 174
	221	+	concerning the addition of a new municipal employees' retirement 175
	222	+	system membership tier modeled after the state employees retirement 176
	223	+	system. 177
	224	+	This act shall take effect as follows and shall amend the following
	225	+	sections:
	226	+
	227	+	Section 1 July 1, 2019 7-473c(a) and (b)
	228	+	Sec. 2 July 1, 2019 7-440
	229	+	Sec. 3 July 1, 2019 New section
	230	+
	231	+	PD Joint Favorable Subst.
166	232