Substitute Senate Bill No. 882
Public Act No. 19-124
AN ACT CONCERNING TH E MUNICIPAL EMPLOYEE S'
RETIREMENT SYSTEM AN D AUTHORIZING BONDIN G FOR THE
CITY OF BRIDGEPORT'S PENSION PLAN A FUND.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 7-440 of the general statutes is repealed and the
following is substituted in lieu thereof (Effective July 1, 2019):
(a) Each member shall contribute to the fund five per cent of his pay
as to that portion of pay with respect to which contributions are not to
be deducted under section 7-453 and two and one-quarter per cent as
to that portion of pay with respect to which contributions are to be so
deducted, to be deducted from such pay by the municipality and
forwarded not less frequently than once a month to the Retirement
Commission to be credited to the fund.
(b) For the fiscal year beginning July 1, 2019, each member shall
contribute to the fund five and one-half per cent of such member's pay
as to that portion of pay with respect to which contributions are not to
be deducted under section 7-453 and two and three-quarters per cent
as to that portion of pay with respect to which contributions are to be
so deducted from such pay by the municipality and forwarded not less
frequently than once a month to the Retirement Commission to be Substitute Senate Bill No. 882
Public Act No. 19-124 2 of 5
credited to the fund.
(c) For the fiscal year beginning July 1, 2020, each member shall
contribute to the fund six per cent of such member's pay as to that
portion of pay with respect to which contributions are not to be
deducted under section 7-453 and three and one-quarter per cent as to
that portion of pay with respect to which contributions are to be so
deducted, to be deducted from such pay by the municipality and
forwarded not less frequently than once a month to the Retirement
Commission to be credited to the fund.
(d) For the fiscal year beginning July 1, 2021, each member shall
contribute to the fund six and one-half per cent of such member's pay
as to that portion of pay with respect to which contributions are not to
be deducted under section 7-453 and three and three-quarters per cent
as to that portion of pay with respect to which contributions are to be
so deducted from such pay by the municipality and forwarded not less
frequently than once a month to the Retirement Commission to be
credited to the fund.
(e) For the fiscal year beginning July 1, 2022, each member shall
contribute to the fund seven per cent of such member's pay as to that
portion of pay with respect to which contributions are not to be
deducted under section 7-453 and four and one-quarter per cent as to
that portion of pay with respect to which contributions are to be so
deducted from such pay by the municipality and forwarded not less
frequently than once a month to the Retirement Commission to be
credited to the fund.
(f) For the fiscal year beginning July 1, 2023, each member shall
contribute to the fund seven and one-half per cent of such member's
pay as to that portion of pay with respect to which contributions are
not to be deducted under section 7-453 and four and three-quarters per
cent as to that portion of pay with respect to which contributions are to Substitute Senate Bill No. 882
Public Act No. 19-124 3 of 5
be so deducted from such pay by the municipality and forwarded not
less frequently than once a month to the Retirement Commission to be
credited to the fund.
(g) For the fiscal year beginning July 1, 2024, and each year
thereafter, each member shall contribute to the fund eight per cent of
such member's pay as to that portion of pay with respect to which
contributions are not to be deducted under section 7-453 and five and
one-quarter per cent as to that portion of pay with respect to which
contributions are to be so deducted from such pay by the municipality
and forwarded not less frequently than once a month to the Retirement
Commission to be credited to the fund.
(h) In the case of members serving with the armed forces of the
United States in time of war, hostilities or national emergency or any
acts incident thereto, as provided in section 7-434, the municipality
shall forward to the Retirement Commission to be credited to the fund
a like contribution on behalf of such member based upon his pay at the
time of entering such service. Any member leaving the employment of
the municipality before becoming eligible for retirement may
withdraw on request to the Retirement Commission the total of all
contributions made by him, including contributions made to another
system and transferred to the Municipal Employees' Retirement Fund
under the provisions of section 7-442b, less any retroactive
contributions payable by such member under section 7-453 to the Old
Age and Survivors Insurance System which have been paid from the
fund under the provisions of section 7-451, provided, if no request is
made within ten years, such contributions shall revert to the fund. The
withdrawal of contributions shall include interest credited from July 1,
1983, or the first of the fiscal year following the date of actual
contribution, whichever is later, to the first of the fiscal year coincident
with or preceding the date the employee leaves municipal service.
Such interest shall be credited at the rate of five per cent per year. In Substitute Senate Bill No. 882
Public Act No. 19-124 4 of 5
addition, for the partial year during which the employee leaves
municipal service or withdraws his contributions, whichever is later,
interest shall be credited at the rate of five-twelfths of one per cent
multiplied by the full number of months completed during that year,
such interest rate to be applied to the value of contributions including
any prior interest credits as of the first day of that year. Any employee
who withdraws his contributions from the fund and is subsequently
reinstated shall not receive credit for service for such prior
employment in the computation of his eventual retirement allowance
unless the withdrawn contributions plus interest, if any, have been
repaid with additional interest at a rate to be determined by the
commission. Any municipality which has made contributions on
behalf of any member serving in the armed forces who is not
reemployed by the municipality within six months following the
termination of such service, unless this period is further extended by
reason of disability incurred in such service, shall be entitled to receive
from the fund on application to the Retirement Commission the
amount of such contributions. Any municipality which has made
contributions in accordance with subsection (b) of section 7-436b on
behalf of any member who leaves the employment of the municipality
and withdraws from the municipal employees' retirement system
before becoming eligible for retirement shall be entitled to receive from
the fund on application to the Retirement Commission the amount of
such contributions. In case of the death of a member before retirement,
who has not elected a retirement income option in accordance with the
provisions of this part or who has made such election but has not
completed the age and service requirements that would permit him to
retire on his own application, or after retirement without having made
such election, or in case of the death of the survivor of a member who
has made such election and his spouse after a retirement allowance has
become payable, his contributions to the fund plus such five per cent
interest, if any, less any retirement allowance paid to him or his
spouse, and less any retroactive contributions paid by such member to Substitute Senate Bill No. 882
Public Act No. 19-124 5 of 5
the Old Age and Survivors Insurance System which have been paid
from the fund under the provisions of section 7-451, shall be paid from
the fund on the order of the Retirement Commission to the beneficiary
or beneficiaries, if any, named by such member. If no named
beneficiaries survive the member, or the survivor of the member and
his spouse, payment shall be made to the executors or administrators
of such member or his spouse, as the case may be, except that, if the
amount is less than five hundred dollars, the refund may be made, at
the option of the Retirement Commission, in accordance with the
terms of section 45a-273.
Sec. 2. (Effective from passage) (a) Notwithstanding the charter or any
ordinance of the city of Bridgeport or any provisions of the general
statutes or special act, the city of Bridgeport is authorized to issue
bonds in an amount not to exceed one hundred twenty-five million
dollars plus the costs of issuances of such bonds for the purpose of
funding the city of Bridgeport's Pension Plan A Fund. Such bonds shall
be "pension deficit funding bonds", as defined in section 7-374c of the
general statutes, but shall not be subject to the provisions of subsection
(b) or (e) of said section.
(b) Such bonds shall mature not more than twenty-five years from
the date of issuance and shall be subject to the provisions of chapter
109 of the general statutes, except the provisions of (1) section 7-371 of
the general statutes concerning the date of the first maturity and the
amount of any installment of principal or principal and interest, and
(2) subsection (e) of section 7-374c of the general statutes concerning
the date of the first maturity and the amount of any installment of
principal or principal and interest, provided the first principal
payment on such bonds shall be made not later than ten years from the
date of issuance of such bonds.