Connecticut 2020 Regular Session

Connecticut Senate Bill SB00438 Compare Versions

Only one version of the bill is available at this time.
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66 General Assembly Raised Bill No. 438
77 February Session, 2020
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2020 AN ACT CONCERNING RE VISIONS TO THE TEACHERS'
2121 RETIREMENT SYSTEM.
2222 Be it enacted by the Senate and House of Representatives in General
2323 Assembly convened:
2424
2525 Section 1. Section 10-183b of the 2020 supplement to the general 1
2626 statutes is repealed and the following is substituted in lieu thereof 2
2727 (Effective July 1, 2020): 3
2828 As used in this chapter, unless the context otherwise requires: 4
2929 (1) "Actuarial reserve basis" means a basis under which the liabilities 5
3030 of the retirement system are determined under acceptable actuarial 6
3131 methods and under which assets are accumulated under a program 7
3232 designed to achieve a proper balance between the accumulated assets 8
3333 and the liabilities of the system. 9
3434 (2) "Amortization of unfunded liabilities" means: (A) For fiscal years 10
3535 ending on or before June 30, 2019, a systematic program of annual 11
3636 payments determined as a level per cent of expected member annual 12
3737 salaries in lieu of a lump sum payment; and (B) for fiscal years ending 13
3838 on or after June 30, 2020, a systematic program of annual payments, 14 Raised Bill No. 438
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4444 transitioning equally over five consecutive fiscal years from a level per 15
4545 cent of expected annual member salaries to a level payment, in lieu of a 16
4646 lump sum payment. 17
4747 (3) "Annual salary" means the annual salary rate for service as a 18
4848 Connecticut teacher during a school year but not including unused sick 19
4949 leave, unused vacation, terminal pay, coaching or extra duty 20
5050 assignments, unless compensation for coaching or extra duty 21
5151 assignment was included in salary for which contributions were made 22
5252 prior to July 1, 1971. In no event shall annual salary include amounts 23
5353 determined by the board to be included for the purpose of inflating the 24
5454 member's average annual salary. The inclusion in annual salary of 25
5555 amounts paid to the member, in lieu of payment by the employer for the 26
5656 cost of benefits, insurance, or individual retirement arrangements which 27
5757 in prior years had been paid by the employer and not included in the 28
5858 member's annual salary, shall be prima facie evidence that such 29
5959 amounts are included for the purpose of inflating the member's average 30
6060 annual salary. Annual salary shall not (A) include payments the timing 31
6161 of which may be directed by the member, (B) include payments to a 32
6262 superintendent pursuant to an individual contract between such 33
6363 superintendent and a board of education, of amounts which are not 34
6464 included in base salary, or (C) exceed the maximum amount allowed 35
6565 under Section 401(a)(17) of the Internal Revenue Code for the applicable 36
6666 limitation year, provided in no event shall the limitation under Section 37
6767 401(a)(17) of the Internal Revenue Code apply to the annual salary of a 38
6868 member whose membership began prior to January 1, 1996, if such 39
6969 limitation would reduce the amount of the member's annual salary 40
7070 below the amount permitted for calculation of the member's retirement 41
7171 benefit under this chapter, [167a,] without regard to the limitation under 42
7272 Section 401(a)(17) of the Internal Revenue Code. Annual salary shall 43
7373 include amounts paid to the member during a sabbatical leave during 44
7474 which mandatory contributions were remitted, provided such member 45
7575 returned to full-time teaching for at least five full years following the 46
7676 completion of such leave. 47
7777 (4) "Average annual salary" means the average [annual salary 48 Raised Bill No. 438
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8383 received during the three years of highest salary] of the three highest 49
8484 annual salaries received as an active member. 50
8585 (5) "Board" means the Teachers' Retirement Board. 51
8686 (6) "Child" means a natural child, an adopted child, or a stepchild of 52
8787 a deceased member who has been a stepchild for at least one year 53
8888 immediately prior to the date on which the member died. A child is a 54
8989 "dependent child" of a deceased member if at the time of the member's 55
9090 death (A) the member was living with the child or providing or 56
9191 obligated to provide, by agreement or court order, a reasonable portion 57
9292 of the support of the child, and (B) the child (i) is unmarried and has not 58
9393 attained age eighteen, or (ii) is disabled and such disability began prior 59
9494 to the child's attaining age eighteen. 60
9595 (7) "Contributions" means amounts withheld pursuant to this chapter 61
9696 and paid to the board by an employer from compensation payable to a 62
9797 member. Prior to July 1, 1989, "mandatory contributions" are 63
9898 contributions required to be withheld under this chapter and consist of 64
9999 five per cent regular contributions and "one per cent contributions". 65
100100 From July 1, 1989, to June 30, 1992, "mandatory contributions" are 66
101101 contributions required to be withheld under this chapter and consist of 67
102102 five per cent regular contributions and one per cent health 68
103103 contributions. From July 1, 1992, to June 30, 2004, "mandatory 69
104104 contributions" are contributions required to be withheld under this 70
105105 chapter and consist of six per cent "regular contributions" and one per 71
106106 cent health contributions. From July 1, 2004, to December 31, 2017, 72
107107 "mandatory contributions" are contributions required to be withheld 73
108108 under this chapter and consist of six per cent regular contributions and 74
109109 one and one-fourth per cent health contributions. From January 1, 2018, 75
110110 to December 31, 2019, inclusive, "mandatory contributions" are 76
111111 contributions required to be withheld under this chapter and consist of 77
112112 seven per cent "regular contributions" and one and one-fourth per cent 78
113113 health contributions. On and after January 1, 2020, "mandatory 79
114114 contributions" are contributions required to be withheld under this 80
115115 chapter and consist of seven per cent "regular contributions" and one 81 Raised Bill No. 438
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121121 and one-fourth per cent health contributions, except that no health 82
122122 contributions shall be required for an employee of the state that (A) has 83
123123 completed the vesting service necessary to receive health benefits 84
124124 provided to retired state employees, and (B) does not participate in any 85
125125 group health insurance plans maintained for retired teachers. Nothing 86
126126 in this subdivision shall affect any other obligation of such a state 87
127127 employee to contribute to the state's retiree health care trust fund. 88
128128 "Voluntary contributions" are contributions by a member authorized to 89
129129 be withheld under section 10-183i, as amended by this act. 90
130130 (8) "Coparticipant" means a designated beneficiary under the 91
131131 provisions of subsection (d) of section 10-183j, as amended by this act. 92
132132 [(8)] (9) "Credited interest" means interest at the rate from time to time 93
133133 fixed by the board consistent with industry standards and practices. 94
134134 Such interest shall be applied to a member's account based on the 95
135135 balance as of the previous June thirtieth. Credited interest shall [be 96
136136 assessed] accrue on any mandatory contributions which were due but 97
137137 not remitted prior to the close of the school year for which salary was 98
138138 paid. 99
139139 [(9)] (10) "Current service" means service rendered in the current 100
140140 fiscal year. 101
141141 [(10)] (11) "Dependent former spouse" means a former spouse of a 102
142142 deceased member who (A) has in his or her care a dependent child of 103
143143 the deceased member; and (B) was receiving, or was entitled to receive, 104
144144 from the deceased member at the time of the death of the deceased 105
145145 member, at least one-half of his or her support; and (C) has not 106
146146 remarried; and (D) is the parent of the child or adopted the child while 107
147147 married to the member and before the child attained age eighteen or, 108
148148 while married to the member, both of them adopted the child before the 109
149149 child attained age eighteen. 110
150150 [(11)] (12) "Dependent parent" means a parent of a deceased member 111
151151 who (A) has reached the age of sixty-five; and (B) has not married after 112
152152 the death of the member; and (C) was receiving at least one-half of his 113 Raised Bill No. 438
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158158 or her support from the member at the time of the member's death and 114
159159 files proof of such support within two years of the date of the member's 115
160160 death; and (D) is not receiving, or entitled to a federal or state old age 116
161161 benefit based on the parent's own earnings, equal to or greater than the 117
162162 amount the parent would be entitled to as a dependent parent under 118
163163 this chapter. A "parent of a deceased member" is (i) the mother or father 119
164164 of a deceased member; or (ii) a stepparent of a deceased member by a 120
165165 marriage entered into before the member attained age sixteen; or (iii) an 121
166166 adopting parent of a deceased member who adopted the deceased 122
167167 member before the member attained age sixteen. 123
168168 [(12)] (13) "Designated beneficiary" means a person designated on a 124
169169 form prescribed by the board by a member to receive amounts which 125
170170 may become payable under this chapter as the result of the member's 126
171171 death whether before or after retirement. If a designated beneficiary is 127
172172 not living at the time of the death of a member, the amounts that would 128
173173 have been payable to the designated beneficiary shall be paid to the 129
174174 member's estate. 130
175175 (14) "Disability allowance" means the amount payable to a disabled 131
176176 member pursuant to the provisions of section 10-183aa, as amended by 132
177177 this act. 133
178178 [(13)] (15) "Disabled" means the inability to perform any teaching 134
179179 service, whether or not such service is performed full-time or part-time, 135
180180 in a public or nonpublic school or a nonschool setting, on a volunteer 136
181181 basis or for compensation, within or without the state of Connecticut, or 137
182182 engage in any substantial gainful activity by reason of any medically 138
183183 determinable physical or mental impairment [which] that (A) is 139
184184 permanent or can be expected to last continually for not less than twelve 140
185185 months from the onset of such impairment, or (B) can be expected to 141
186186 result in death or to be of long-continued and indefinite duration, except 142
187187 that during the first twenty-four months that a member is receiving a 143
188188 disability allowance, "disabled" means the inability to perform the usual 144
189189 duties of his occupation by reason of any such impairment. 145 Raised Bill No. 438
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195195 [(14)] (16) "Employer" means an elected school committee, a board of 146
196196 education, the State Board of Education, the Office of Early Childhood, 147
197197 the Board of Regents for Higher Education or any of the constituent 148
198198 units, [the governing body of the Children's Center and its successors,] 149
199199 the E. O. Smith School and any other activity, institution or school 150
200200 employing members. With respect to members hired prior to July 1, 151
201201 2020, "employer" also means the governing body of the Children's 152
202202 Center and its successors. 153
203203 [(15)] (17) "Formal leave of absence" means any absence from active 154
204204 service in the public schools of Connecticut formally granted by a 155
205205 member's employer as evidenced by contemporary records of the 156
206206 employer, provided in the case of an absence due to illness, medical or 157
207207 other evidence of such illness may, at the discretion of the Teachers' 158
208208 Retirement Board, be accepted in lieu of evidence of the formal granting 159
209209 of a leave. 160
210210 [(16)] (18) "Formal application of retirement" means (A) the member's 161
211211 application, birth certificate or notarized statement supported by other 162
212212 evidence satisfactory to the board, in lieu thereof, (B) records of service, 163
213213 [when] if such records are required by the board to determine a salary 164
214214 rate or years of creditable service, (C) a statement of payment plan, 165
215215 [and,] including, if applicable, the fixed period of time selected by a 166
216216 member under Plan C or the coparticipant's share designated under 167
217217 Plan D, pursuant to section 10-183j, as amended by this act, (D) in the 168
218218 case of an application for a disability benefit, a physician's or an 169
219219 advanced practice registered nurse's statement of health, (E) in the case 170
220220 of a member who is married, a marriage certificate, and (F) any other 171
221221 documentation required by the board. 172
222222 [(17)] (19) "Funding" means the accumulation of assets in advance of 173
223223 the payment of retirement allowances in accordance with a [definite 174
224224 actuarial program] reasonable actuarial methodology. 175
225225 [(18)] (20) "Member" means any Connecticut teacher employed for an 176
226226 average of at least one-half of each school day, [except that no teacher 177 Raised Bill No. 438
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232232 who under any provision of the general statutes elects not to participate 178
233233 in the system shall be a member unless and until the teacher elects to 179
234234 participate in the system] and who was employed on and compensated 180
235235 for the first school day, according to such member's schedule, of a school 181
236236 month. Members teaching in a nonpublic school classified as a public 182
237237 school [by the board] under the provisions of this section may continue 183
238238 as members as long as they continue as teachers in such school even if 184
239239 the school ceases to be so classified. A former teacher who has not 185
240240 withdrawn his or her accumulated contributions shall be an "inactive 186
241241 member". A member who, during the period of a formal leave of 187
242242 absence granted by his or her employer, but not exceeding an aggregate 188
243243 of ten school months, continues to make mandatory contributions to the 189
244244 board, retains his or her status as an active member. 190
245245 [(19)] (21) "Normal cost" means the amount of contribution which the 191
246246 state is required to make into the retirement fund in order to meet the 192
247247 actuarial cost of current service. 193
248248 [(20)] (22) "Public school" means any day school conducted within or 194
249249 without this state under the orders and superintendence of a duly 195
250250 elected school committee, a board of education, the State Board of 196
251251 Education, the Office of Early Childhood, the board of governors or any 197
252252 of its constituent units, the E. O. Smith School, [the Children's Center 198
253253 and its successors, the State Education Resource Center established 199
254254 pursuant to section 10-4q of the 2014 supplement to the general statutes, 200
255255 revision of 1958, revised to January 1, 2013, the State Education Resource 201
256256 Center established pursuant to section 10-357a,] joint activities of boards 202
257257 of education authorized by subsection (b) of section 10-158a and any 203
258258 institution supported by the state at which teachers are employed or any 204
259259 incorporated secondary school not under the orders and 205
260260 superintendence of a duly elected school committee or board of 206
261261 education but located in a town not maintaining a high school and 207
262262 providing free tuition to pupils of the town in which it is located, and 208
263263 which has been approved by the State Board of Education under the 209
264264 provisions of part II of chapter 164, provided that such institution or 210
265265 such secondary school is classified as a public school by the retirement 211 Raised Bill No. 438
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271271 board. With respect to members hired prior to July 1, 2020, "public 212
272272 school" also means the Children's Center and its successors, the State 213
273273 Education Resource Center established pursuant to section 10-4q of the 214
274274 2014 supplement to the general statutes, revision of 1958, revised to 215
275275 January 1, 2013, and the State Education Resource Center established 216
276276 pursuant to section 10-357a. 217
277277 [(21)] (23) "Retirement allowance" means payments for life derived 218
278278 from member contributions, including credited interest, and 219
279279 contributions from the state. 220
280280 (24) "Retired member" means a member receiving a retirement 221
281281 benefit as computed under section 10-183g, as amended by this act. 222
282282 [(22)] (25) "School year" means the twelve months ending on June 223
283283 thirtieth of each year. 224
284284 [(23)] (26) "Surviving spouse" means a widow or widower of a 225
285285 deceased member who (A) was living with the member at the time of 226
286286 the member's death, or receiving, or entitled by court order or 227
287287 agreement to receive, regular support payments from the member, and 228
288288 (B) has not remarried. 229
289289 [(24)] (27) "Survivors" means a surviving spouse, a dependent former 230
290290 spouse, a dependent child and a dependent parent. 231
291291 [(25)] (28) "System" means the Connecticut teachers' retirement 232
292292 system. 233
293293 [(26)] (29) "Teacher" means (A) any person employed by the public 234
294294 schools of Connecticut, including, but not limited to, a teacher, 235
295295 permanent substitute teacher, principal, assistant principal, supervisor, 236
296296 assistant superintendent or superintendent employed by the public 237
297297 schools in a professional capacity while possessing a certificate or 238
298298 permit issued by the State Board of Education, except State Board of 239
299299 Education endorsement 85 or any successor to such endorsement, 240
300300 provided on and after July 1, 1975, such certificate shall be for the 241 Raised Bill No. 438
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306306 position in which the person is then employed, except as provided for 242
307307 in section 10-183qq, (B) certified personnel hired prior to July 1, 2020, 243
308308 who provide health and welfare services for children in nonprofit 244
309309 schools, as provided in section 10-217a, under an oral or written 245
310310 agreement, (C) any person who is engaged in teaching or supervising 246
311311 schools for adults in a program that leads to a high school diploma if the 247
312312 annual salary paid for such service is equal to or greater than the 248
313313 minimum salary paid for a regular, full-time teaching position in the 249
314314 day schools in the town where such service is rendered, (D) a member 250
315315 of the professional staff of [the State Board of Education,] the Office of 251
316316 Early Childhood, or of the Board of Regents for Higher Education or any 252
317317 of the constituent units, [and] (E) a [member of the] staff member of the 253
318318 State Education Resource Center established pursuant to section 10-4q 254
319319 of the 2014 supplement to the general statutes, revision of 1958, revised 255
320320 to January 1, 2013, or the State Education Resource Center established 256
321321 pursuant to section 10-357a, employed in a professional capacity while 257
322322 possessing a certificate or permit issued by the State Board of Education, 258
323323 provided such staff member was hired prior to July 1, 2020, and (F) any 259
324324 person employed as professional staff of the State Board of Education, 260
325325 provided such person was a member or inactive member prior to July 1, 261
326326 2020. A "permanent substitute teacher" is [one] a person who serves as 262
327327 [such for at least ten months during any school year] a substitute teacher 263
328328 in the same assignment for an entire school year. 264
329329 [(27)] (30) "Unfunded liability" means the actuarially determined 265
330330 value of the liability for service before the date of the actuarial valuation 266
331331 less the accumulated assets in the retirement fund. 267
332332 [(28)] (31) "Internal Revenue Code" means the Internal Revenue Code 268
333333 of 1986, or any subsequent corresponding internal revenue code of the 269
334334 United States, as from time to time amended, and any regulations 270
335335 promulgated under or interpretations of said code that may affect this 271
336336 chapter. 272
337337 [(29)] (32) "Limitation year" means the twelve-month period 273
338338 beginning each July first and ending each June thirtieth. 274 Raised Bill No. 438
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344344 Sec. 2. Section 10-183c of the general statutes is repealed and the 275
345345 following is substituted in lieu thereof (Effective July 1, 2020): 276
346346 (a) The Connecticut teachers' retirement system is established to 277
347347 provide retirement and other benefits for teachers, their survivors and 278
348348 beneficiaries. On or after a member vests in the system by becoming 279
349349 eligible to receive a retirement benefit pursuant to section 10-183f, as 280
350350 amended by this act, or accumulates ten years of credited service in the 281
351351 system, as defined in subsection (a) of section 10-183e, as amended by 282
352352 this act, whichever is later, the member's benefit under sections 10-183e, 283
353353 10-183f, 10-183g, 10-183h, 10-183j and 10-183aa, as amended by this act, 284
354354 is contractual in nature and no public or special act of the General 285
355355 Assembly shall diminish such benefit, provided this section shall apply 286
356356 only to an active member who is vested on October 1, 2003, or to a 287
357357 member who vests or accumulates ten years of credited service on or 288
358358 after October 1, 2003, and shall apply to the member's benefit in 289
359359 existence on October 1, 2003, or to the member's benefit in existence on 290
360360 the date the member vests or accumulates ten years of credited service, 291
361361 respectively, whichever is later. 292
362362 (b) In addition to the benefits described in subsection (a) of this 293
363363 section, upon the issuance of bonds authorized by section 10-183qq, all 294
364364 benefits of all members of the teachers' retirement system as of said 295
365365 issuance shall be construed to be contractual in nature, as long as the 296
366366 bonds issued in accordance with section 10-183qq or any subsequent 297
367367 reauthorizations of said bonds remain outstanding. Nothing in this 298
368368 subsection shall be construed to bestow any vested rights upon a 299
369369 member of the Connecticut teachers' retirement system until such time 300
370370 as those rights are earned in accordance with provisions in place upon 301
371371 issuance of the bonds pursuant to section 10-183qq. 302
372372 (c) Nothing in this section shall affect the provisions of section 10-303
373373 183t, as amended by this act, or 10-183z. 304
374374 Sec. 3. Section 10-183e of the general statutes is repealed and the 305
375375 following is substituted in lieu thereof (Effective July 1, 2020): 306 Raised Bill No. 438
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381381 (a) (1) A member shall receive a month of credited service for each 307
382382 month of service, from September to June, inclusive, as a teacher, 308
383383 [provided the Teachers' Retirement Board may grant a member] subject 309
384384 to the payment of the mandatory contribution for such month. Ten 310
385385 months of credited service shall be equal to one year of credited service. 311
386386 A member may not accumulate more than one year of credited service 312
387387 during any school year. 313
388388 (2) The Teachers' Retirement Board may allow a member to receive a 314
389389 month of credited service for a month during which such member was 315
390390 employed after the first school day but not later than the fifth school day 316
391391 of such month if [(1)] (A) such month was the member's first month of 317
392392 service as a teacher, [and (2)] (B) such month of credited service is 318
393393 needed by the member in order to qualify for a normal retirement 319
394394 benefit, [. Ten months of credited service shall be equal to one year of 320
395395 credited service. A member may not accumulate more than one year of 321
396396 credited service during any school year] and (C) the mandatory 322
397397 contribution for such month is paid. 323
398398 (b) Any member may purchase, as provided in subsection (c) of this 324
399399 section, additional credited service, but not to exceed an aggregate of 325
400400 one year in the case of service described in subdivision (2) of this 326
401401 subsection for each two years of active full-time service as a Connecticut 327
402402 teacher; and not to exceed an aggregate of one year in the case of absence 328
403403 described in subdivision (8) of this subsection for each five years of 329
404404 active full-time service as a Connecticut teacher, provided if any such 330
405405 absence exceeds thirty consecutive school months, such additional 331
406406 credited service shall be limited to thirty school months; and not to 332
407407 exceed an aggregate of ten years for all service described in this 333
408408 subsection, except for service described in subdivision (2) of this 334
409409 subsection. In no event may any service described in this subsection be 335
410410 purchased if the member is receiving or is, or will become, entitled to 336
411411 receive a retirement benefit based upon such service from any 337
412412 governmental system other than the teachers' retirement system or the 338
413413 federal Social Security System. Additional credited service includes: 339 Raised Bill No. 438
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419419 (1) Service as a teacher in a school for military dependents established 340
420420 by the United States Department of Defense; 341
421421 (2) Service as a teacher in the public schools of another state of the 342
422422 United States, its territories or possessions; 343
423423 (3) Service in the armed forces of the United States in time of war, as 344
424424 defined in section 27-103, or service in said armed forces during the 345
425425 period beginning October 27, 1953, and ending January 31, 1955; 346
426426 (4) Service in a permanent full-time position for the state; 347
427427 (5) Service as a teacher at The University of Connecticut prior to July 348
428428 1, 1965; 349
429429 (6) Service as a teacher at the Wheeler School and Library, North 350
430430 Stonington, prior to September 1, 1949; 351
431431 (7) Service as a teacher at the Gilbert Home, Winsted, prior to 352
432432 September 1, 1948; 353
433433 (8) Any formal leave of absence as provided in regulations adopted 354
434434 by the board, if the member subsequently returns to service for at least 355
435435 one school year; 356
436436 (9) Service as a teacher at the American School [at Hartford] for the 357
437437 Deaf, the Connecticut Institute for the Blind or the Newington 358
438438 Children's Hospital; 359
439439 (10) Forty or more days of service as a substitute teacher, or the 360
440440 equivalent service rendered at less than half-time, in a single public 361
441441 school system within the state of Connecticut in any school year, 362
442442 provided (A) eighteen days of such service shall equal one month of 363
443443 credited service under subsection (a) of this section, and (B) on and after 364
444444 July 1, 2020, such service shall be determined on a school year basis; 365
445445 (11) Service in the armed forces of the United States, other than 366
446446 service described in subdivision (3) of this subsection, not to exceed 367 Raised Bill No. 438
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452452 thirty months; 368
453453 (12) Service as a full-time, salaried, elected official of the state or any 369
454454 political subdivision of the state during the 1978 calendar year or 370
455455 thereafter, if such member subsequently returns to service as a teacher 371
456456 in a public school for at least one school year; 372
457457 (13) Service in the public schools of Connecticut as a member of the 373
458458 federal Teacher Corps, not to exceed two years; 374
459459 (14) Service in the United States Peace Corps; 375
460460 (15) Service in the United States VISTA (Volunteers in Service to 376
461461 America) program; 377
462462 (16) Service in the public schools of Connecticut as a social work 378
463463 assistant, from January 1, 1969, to December 31, 1986, inclusive, if such 379
464464 member became a certified school social worker and remained in public 380
465465 school service as a social worker after certification; and 381
466466 (17) Service prior to July 1, 2007, as a member of the staff of the State 382
467467 Education Resource Center established pursuant to section 10-4q of the 383
468468 general statutes, revision of 1958, revised to January 1, 2007, employed 384
469469 in a professional capacity while possessing a certificate or permit issued 385
470470 by the State Board of Education. 386
471471 Any service described in subdivision (3), (8) or (10) of this subsection 387
472472 shall be considered service in the public schools of Connecticut. 388
473473 (c) Additional credited service [must] may only be purchased by a 389
474474 member (1) prior to the [time] effective date of such member's 390
475475 retirement, or (2) at the time a surviving spouse elects benefits under the 391
476476 provisions of subsection (d) of section 10-183h, as amended by this act. 392
477477 [, or (3) at the time benefits commence as provided under sections 10-393
478478 183g and 10-183jj.] Any purchase of such service shall be accomplished 394
479479 by the member paying to the board an amount determined on the basis 395
480480 of actuarial factors adopted by the board that reflect the present value 396
481481 of one-half of the full actuarial cost of the benefit increase that will be 397 Raised Bill No. 438
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487487 derived by the purchase of such service, except that in the case of 398
488488 purchase of service described in subdivision (17) of subsection (b) of this 399
489489 section, or in the case of purchase of service described in subdivision (2) 400
490490 of said subsection (b) in excess of ten years, the present value of the full 401
491491 actuarial cost. Such factors shall consider the member's age at the time 402
492492 of purchase, actual or projected salary, and the earliest date on which 403
493493 the member would be eligible for a normal retirement allowance. 404
494494 Payments for additional credited service may be made in a lump sum 405
495495 by transfer of funds from the member's accumulated one per cent 406
496496 contributions withheld prior to July 1, 1989, with credited interest and 407
497497 accumulated voluntary contributions with credited interest plus such 408
498498 other amounts as may be required to complete the purchase. Any other 409
499499 payment for additional credited service shall be made solely by payroll 410
500500 deduction of an amount subject to state, federal or local tax in the tax or 411
501501 income year in which such voluntary contribution is made and shall also 412
502502 include such other amounts as may be required to complete the 413
503503 purchase. Any such other amount shall be deposited directly into such 414
504504 member's regular account. No amount deposited in accordance with 415
505505 this subsection shall be treated as a voluntary contribution as described 416
506506 in section 10-183i, as amended by this act. 417
507507 [(d) For the purpose of determining eligibility for benefits under 418
508508 section 10-183f, credited service purchased under subsection (b) of this 419
509509 section shall not be used except that (1) service in a school for military 420
510510 dependents described in subdivision (1) of subsection (b) of this section 421
511511 and out-of-state public school service described in subdivision (2) of 422
512512 said subsection (b) shall be used to determine eligibility for a normal 423
513513 retirement benefit based upon thirty-five years of credited service and 424
514514 for an early retirement benefit; and (2) military service described in 425
515515 subdivision (3) of said subsection (b), any leave of absence described in 426
516516 subdivision (8) of said subsection (b) and substitute service described in 427
517517 subdivision (10) of said subsection (b) shall be used as if they were 428
518518 service in the public schools of Connecticut. 429
519519 (e) For purposes of computing benefit amounts under section 10-430
520520 183g, other than proratable benefits and deferred vested retirement 431 Raised Bill No. 438
521521
522522
523523
524524 LCO No. 2711 15 of 56
525525
526526 benefits, credited service purchased under subsection (b) of this section 432
527527 shall be used in the same manner as credited service described in 433
528528 subsection (a) of this section. In computing proratable benefits, 434
529529 purchased service credits shall be used as set forth in subsection (b) of 435
530530 section 10-183g. In computing deferred vested retirement benefits, 436
531531 purchased service credits shall be used as set forth in subsection (d) of 437
532532 section 10-183g. In computing the lump sum death benefit under section 438
533533 10-183h, military service described in subdivision (3) of subsection (b) 439
534534 of this section and leaves of absence described in subdivision (8) of said 440
535535 subsection (b) shall be used as if they were service in the public schools 441
536536 of Connecticut.] 442
537537 [(f)] (d) For purposes of computing benefit amounts under [section 443
538538 10-183g] this chapter, whole months of credited service, including 444
539539 additional credited service, in excess of whole years shall be used in 445
540540 determining aggregate accumulations of credited service. 446
541541 [(g)] (e) Any member who has been elected to a full-time or part-time 447
542542 position in an organization which has been duly designated as the 448
543543 teachers' representative or who has been elected to a full-time or part-449
544544 time position in a state-wide, national or international bargaining 450
545545 organization may, during the time such member so serves, continue 451
546546 membership and may make, or have made for such member, payments 452
547547 of contributions for such time, provided the organization which such 453
548548 member represents shall pay the full actuarial cost that would otherwise 454
549549 be incurred by the state for the time such member serves in excess of one 455
550550 year. If payment is made during such periods or at any time before 456
551551 retirement, such member shall receive credit for such service and shall 457
552552 be considered as serving as a public school teacher in the state for the 458
553553 purpose of computing length of service, and for the purpose of 459
554554 computing average annual salary, and shall be considered by the 460
555555 retirement board as though such member were remaining in such 461
556556 member's latest teaching position. 462
557557 Sec. 4. Section 10-183f of the general statutes is repealed and the 463
558558 following is substituted in lieu thereof (Effective July 1, 2020): 464 Raised Bill No. 438
559559
560560
561561
562562 LCO No. 2711 16 of 56
563563
564564 (a) A member is eligible to receive a normal retirement benefit [who] 465
565565 if such member (1) has attained age sixty and has accumulated twenty 466
566566 years of credited service in the public schools of Connecticut, or (2) has 467
567567 attained any age and has accumulated thirty-five years of credited 468
568568 service, at least twenty-five years of which are service in the public 469
569569 schools of Connecticut. 470
570570 (b) A member is eligible to receive a proratable retirement benefit 471
571571 [who] if such member has attained age sixty prior to termination of 472
572572 service and has accumulated at least ten years of credited service in the 473
573573 public schools of Connecticut. 474
574574 (c) A member is eligible to receive an early retirement benefit [who] 475
575575 if such member has accumulated twenty-five years of credited service 476
576576 at least twenty years of which are service in the public schools of 477
577577 Connecticut, or [who] if such member has attained the age of fifty-five 478
578578 and has accumulated at least twenty years of credited service, at least 479
579579 fifteen of which are service in the public schools of Connecticut. 480
580580 (d) A member is eligible to receive a deferred vested retirement 481
581581 benefit beginning at age sixty [who] if such member: (1) Has 482
582582 accumulated ten years of credited service in the public schools of 483
583583 Connecticut; and (2) terminates service before becoming eligible for any 484
584584 other retirement benefit; and (3) leaves his or her accumulated 485
585585 contributions with the system. 486
586586 (e) Repealed by P.A. 79-541, S. 5, 6. 487
587587 (f) The survivors of a member who dies (1) while in service in the 488
588588 public schools of Connecticut, (2) within two months after withdrawal 489
589589 from such service and prior to the effective date of such member's 490
590590 retirement or (3) while receiving a disability benefit under section 10-491
591591 183aa, as amended by this act, shall receive survivors' benefits. [, except 492
592592 that, if a member who has elected a coparticipant option, under section 493
593593 10-183j, dies after such option becomes effective, such coparticipant 494
594594 option shall be given effect and no survivors' benefits shall be payable.] 495
595595 Before any survivors' benefits are paid, the board shall receive such 496 Raised Bill No. 438
596596
597597
598598
599599 LCO No. 2711 17 of 56
600600
601601 applications and other documents and information as it deems 497
602602 necessary. 498
603603 (g) Notwithstanding any provision of this chapter, pursuant to 499
604604 Section 401(a)(9) of the Internal Revenue Code, a member shall begin 500
605605 receiving benefits under this chapter no later than April first of the 501
606606 calendar year following the calendar year in which (1) the member 502
607607 attains age seventy and one-half, or seventy-two for members who 503
608608 attain such age on or after January 1, 2020, or (2) if the member retires 504
609609 after age seventy and one-half, or seventy-two for members who attain 505
610610 such age on or after January 1, 2020, the calendar year in which such 506
611611 member retires. 507
612612 Sec. 5. Section 10-183g of the 2020 supplement to the general statutes 508
613613 is repealed and the following is substituted in lieu thereof (Effective July 509
614614 1, 2020): 510
615615 (a) The normal retirement benefit shall be two per cent times the 511
616616 number of years of full-time credited service and a proportional fraction 512
617617 of two per cent times the number of years of credited service at less than 513
618618 full-time multiplied by average annual salary. In no event, however, 514
619619 shall such benefit exceed seventy-five per cent of such salary or be less 515
620620 than three thousand six hundred dollars. 516
621621 (b) The proratable retirement benefit shall be computed as follows: 517
622622 Average annual salary multiplied by (1) number of years of credited 518
623623 service [, excluding all additional credited service, except service 519
624624 described in subdivisions (3), (8) and (10) of subsection (b) of section 10-520
625625 183e,] in the public schools of Connecticut multiplied by the applicable 521
626626 percentage based on age and service as determined from the table 522
627627 below, and (2) number of years of all additional credited service not 523
628628 used in subdivision (1) of this subsection multiplied by one per cent. 524
629629 T1 TABLE
630630 T2 AGE OF RETIREMENT
631631 T3 Years Of Raised Bill No. 438
632632
633633
634634
635635 LCO No. 2711 18 of 56
636636
637637 T4 Connecticut
638638 T5 Service 60 61 62 63 64 65 66 67 68 69 70
639639 T6 10 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0
640640 T7 11 1.1 1.1 1.1 1.1 1.1 1.1 1.1 1.1 1.1 1.1 1.1
641641 T8 12 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.2
642642 T9 13 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3
643643 T10 14 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4
644644 T11 15 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5
645645 T12 16 1.6 1.6 1.6 1.6 1.6 1.6 1.6 1.6 1.6 1.6 1.6
646646 T13 17 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7
647647 T14 18 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8
648648 T15 19 1.9 1.9 1.9 1.9 1.9 1.9 1.9 1.9 1.9 1.9 1.9
649649 T16 20 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0
650650
651651 (c) The early retirement benefit shall be computed in the same 525
652652 manner as the normal retirement benefit, then actuarially reduced, on 526
653653 the basis of early retirement tables adopted from time to time by the 527
654654 board, for each month early retirement precedes the minimum age at 528
655655 which the member could have retired with a normal retirement benefit 529
656656 pursuant to section 10-183f, as amended by this act. [Such minimum age 530
657657 shall be such member's actual age at retirement plus the lesser of (1) the 531
658658 difference between such age and age sixty, or (2) the difference between 532
659659 thirty-five years and the sum of such member's years of Connecticut 533
660660 public school service plus all purchased leaves of absence, military and 534
661661 out-of-state public school service.] On and after July 1, 1999, any 535
662662 revisions to the early retirement tables shall be submitted to the Office 536
663663 of Policy and Management and the joint standing committee of the 537
664664 General Assembly having cognizance of matters relating to 538
665665 appropriations and the budgets of state agencies within one month of 539
666666 their adoption by the board. Any such revisions shall be accompanied 540
667667 by an actuarial certification of the costs associated with such revisions. 541
668668 (d) The deferred vested retirement benefit shall be computed as 542
669669 follows: Average annual salary multiplied by (1) number of years of 543
670670 credited service, [excluding all additional credited service, except 544 Raised Bill No. 438
671671
672672
673673
674674 LCO No. 2711 19 of 56
675675
676676 service described in subdivisions (3), (8) and (10) of subsection (b) of 545
677677 section 10-183e,] in the public schools of Connecticut multiplied by two 546
678678 per cent, then actuarially reduced in the same manner as the early 547
679679 retirement benefit if the years of service which could have been 548
680680 rendered were less than twenty years by age sixty or by the subsequent 549
681681 date of retirement, and (2) number of years of all additional credited 550
682682 service not used in subdivision (1) of this subsection multiplied by one 551
683683 per cent. 552
684684 (e) Repealed by P.A. 79-541, S. 5, 6. 553
685685 (f) (1) In addition to a retirement benefit computed under subsections 554
686686 (a) to (d), inclusive, of this section and a disability allowance under 555
687687 subsections (a) to (g), inclusive, of section 10-183aa, as amended by this 556
688688 act, and except as provided in subdivision (2) of this subsection, a 557
689689 member shall receive a lump sum payment equal to the member's 558
690690 accumulated one per cent contributions withheld prior to July 1, 1989, 559
691691 and any voluntary contributions with credited interest. Such lump sum 560
692692 shall be paid not later than three months after (A) the effective date of 561
693693 retirement, or (B) the date the first payment of a disability allowance 562
694694 under section 10-183aa, as amended by this act, is made, except the 563
695695 board may delay payment of such lump sum in the case of extenuating 564
696696 circumstances. If such delay occurs, the board shall submit a written 565
697697 notice to the member explaining the nature of the extenuating 566
698698 circumstances and an estimate as to when such lump sum shall be paid. 567
699699 (2) In lieu of such lump sum, the member may elect to receive an 568
700700 actuarially equivalent annuity for life. [Such lump sum or annuity shall 569
701701 be paid, or commenced to be paid,] Payment of such annuity, if elected, 570
702702 shall commence when the first payment of the [other] retirement benefit 571
703703 computed under subsections (a) to (d), inclusive, of this section or a 572
704704 disability allowance under section 10-183aa, as amended by this act, is 573
705705 made. 574
706706 (g) A member's complete formal application for retirement, if sent by 575
707707 mail, shall be deemed to have been filed with the board on the date such 576 Raised Bill No. 438
708708
709709
710710
711711 LCO No. 2711 20 of 56
712712
713713 application is postmarked. No benefit computed under subsections (a) 577
714714 to (d), inclusive, of this section and under subsections (a) to (g), 578
715715 inclusive, of section 10-183aa, as amended by this act, shall become 579
716716 effective until [the end of the calendar month of the filing by the] a 580
717717 member eligible for retirement under section 10-183f, as amended by 581
718718 this act, files with the board [of] a complete formal application for 582
719719 retirement and terminates service with such member's employer. Such 583
720720 benefit shall accrue from the first day of the month following [such] the 584
721721 calendar month such application is filed and payment of such benefit in 585
722722 equal monthly installments shall commence on the last day of the month 586
723723 in which such benefit begins to accrue. The initial payment of such 587
724724 benefit may be made not later than three months following the effective 588
725725 date of retirement, provided such payment shall be retroactive to such 589
726726 effective date. Upon a finding that extenuating circumstances relating to 590
727727 the health of a member caused a delay in the filing of the member's 591
728728 complete formal application, and such application is filed on or after 592
729729 July 1, 1986, the board may deem such application to have been filed up 593
730730 to three months earlier than the actual date of the filing. Upon a finding 594
731731 that extenuating circumstances related to the health of a member caused 595
732732 a delay in the filing of an election pursuant to subsection (g) of section 596
733733 10-183aa, as amended by this act, and such election is filed on or after 597
734734 July 1, 1986, the board may deem such election to have been filed as of 598
735735 the date such member's benefits would otherwise have been converted 599
736736 to a normal retirement [allowance, provided such member's disability 600
737737 allowance became effective on or before November 1, 1976, and such 601
738738 member attained the age of sixty on or after August 1, 1984] benefit 602
739739 under this section. 603
740740 (h) (1) A benefit computed under subsections (a) to (d), inclusive, of 604
741741 this section and under subsections (a) to (g), inclusive, of section 10-605
742742 183aa, as amended by this act, shall continue until the death of the 606
743743 member. 607
744744 (2) For any member who [retires] accumulates ten years of credited 608
745745 service prior to July 1, 2019, if twenty-five per cent of the aggregate 609
746746 benefits paid to a member prior to death, inclusive of the month of such 610 Raised Bill No. 438
747747
748748
749749
750750 LCO No. 2711 21 of 56
751751
752752 member's death, are less than such member's accumulated regular 611
753753 contributions, including any one per cent contributions withheld prior 612
754754 to July 1, 1989, and any voluntary contributions plus credited interest, 613
755755 the member's designated beneficiary shall be paid on the death of the 614
756756 member a lump sum amount equal to the difference between such 615
757757 aggregate payments and such accumulated contributions plus credited 616
758758 interest that had been accrued to the date benefits commenced. 617
759759 (3) For any member who [retires] accumulates ten years of credited 618
760760 service on or after July 1, 2019, notwithstanding the provisions of 619
761761 subdivision (2) of section 10-183c, as amended by this act, if twenty-five 620
762762 per cent of the aggregate benefits paid to a member before July 1, 2019, 621
763763 [and prior to death,] plus fifty per cent of the aggregate benefits paid to 622
764764 a member on or after July 1, 2019, and prior to death, inclusive of the 623
765765 month of such member's death, are less than such member's 624
766766 accumulated regular contributions, including any one per cent 625
767767 contributions withheld prior to July 1, 1989, and any voluntary 626
768768 contributions plus credited interest, the member's designated 627
769769 beneficiary shall be paid on the death of the member a lump sum 628
770770 amount equal to the difference between such aggregate payments and 629
771771 such accumulated contributions plus credited interest that had been 630
772772 accrued to the date benefits commenced. 631
773773 (i) [In lieu of a benefit computed under subsections (a) to (d), 632
774774 inclusive, of this section and under subsections (a) to (g), inclusive, of 633
775775 section 10-183aa, a] A member [may] shall elect one of the benefit 634
776776 options described in section 10-183j , as amended by this act, or any 635
777777 other actuarially equivalent option which the board may offer from time 636
778778 to time. 637
779779 (j) Beginning the first day of January or July which follows nine 638
780780 months in retirement, a retired member who retired prior to September 639
781781 1, 1992, or a member's successor beneficiary, except a person receiving 640
782782 survivor's benefits, shall be eligible for an annual five per cent cost of 641
783783 living allowance on any benefit except a benefit based upon such 642
784784 member's one per cent contributions or voluntary contributions. Such 643 Raised Bill No. 438
785785
786786
787787
788788 LCO No. 2711 22 of 56
789789
790790 cost of living allowance shall be computed on the basis of the retirement 644
791791 benefits to which such retired member or successor beneficiary was 645
792792 entitled on the last day of the preceding December or June except 646
793793 benefits based upon one per cent or voluntary contributions. Such 647
794794 member's successor beneficiary means any person, other than such 648
795795 member, receiving benefits as the result of the election of a period 649
796796 certain option or a coparticipant option, including an election for such 650
797797 an option by a surviving spouse under subsection (d) of section 10-183h, 651
798798 as amended by this act. The right to such allowance, or any portion 652
799799 thereof, may be waived by the person entitled thereto at any time. Any 653
800800 waiver shall remain in effect until the first day of the month following 654
801801 such person's death or the filing with the board of a written notice of 655
802802 cancellation of the waiver. Any allowance waived shall be forever 656
803803 forfeited. If on any subsequent first day of January or July the Teacher's 657
804804 Retirement Board determines that the National Consumer Price Index 658
805805 for urban wage earners and clerical workers for the twelve-month 659
806806 period ending on the last day of the preceding November or May has 660
807807 increased less than the cost of living allowance provided under this 661
808808 subsection, the cost of living allowance provided by this subsection shall 662
809809 be adjusted to reflect the change in such index provided such cost of 663
810810 living allowance shall not be less than three per cent. 664
811811 (k) Beginning the first day of January or July which follows nine 665
812812 months in retirement, a retired member who retired on or after 666
813813 September 1, 1992, or a member's successor beneficiary, except a person 667
814814 receiving survivor's benefits, shall be eligible for an annual cost of living 668
815815 allowance calculated in accordance with the provisions of subsections 669
816816 (l) or (m) of this section on any benefit except a benefit based upon such 670
817817 member's one per cent contributions or voluntary contributions. Such 671
818818 cost of living allowance shall be computed on the basis of the retirement 672
819819 benefits to which such retired member or successor beneficiary was 673
820820 entitled on the last day of the preceding December or June except 674
821821 benefits based upon one per cent or voluntary contributions. Such 675
822822 member's successor beneficiary means any person, other than such 676
823823 member, receiving benefits as the result of the election of a period 677 Raised Bill No. 438
824824
825825
826826
827827 LCO No. 2711 23 of 56
828828
829829 certain option or a coparticipant option, including an election for such 678
830830 an option by a surviving spouse under subsection (d) of section 10-183h, 679
831831 as amended by this act. The right to such allowance, or any portion 680
832832 thereof, may be waived by the person entitled thereto at any time. Any 681
833833 waiver shall remain in effect until the first day of the month following 682
834834 such person's death or the filing with the board of a written notice of 683
835835 cancellation of the waiver. Any allowance waived shall be forever 684
836836 forfeited. 685
837837 (l) (1) Beginning the first day of January or July which follows nine 686
838838 months in retirement, a retired member who retired on or after 687
839839 September 1, 1992, or a member's successor beneficiary, except a person 688
840840 receiving survivor's benefits, shall be eligible for an annual cost of living 689
841841 allowance. The cost of living allowance shall be calculated by using the 690
842842 percentage cost of living adjustment granted by the Social Security 691
843843 Administration for the applicable year, computed on the basis of the 692
844844 retirement benefits to which such retired member or successor 693
845845 beneficiary was entitled on the last day of the preceding December or 694
846846 June except benefits based upon one per cent or voluntary contributions, 695
847847 provided no cost of living allowance shall exceed six per cent and 696
848848 provided further, if the total return earned by the trustees on the market 697
849849 value of the pension assets for the preceding fiscal year is less than eight 698
850850 and one-half per cent, any cost of living allowance granted shall not 699
851851 exceed one and one-half per cent. 700
852852 (2) A member entering the retirement system commencing on or after 701
853853 July 1, 2007, or such member's successor beneficiary, except a person 702
854854 receiving survivor's benefits, shall, beginning the first day of January or 703
855855 July that follows nine months in retirement, be eligible for an annual 704
856856 cost of living allowance as follows: The cost of living allowance shall be 705
857857 calculated by using the percentage cost of living adjustment granted by 706
858858 the Social Security Administration for the applicable year, computed on 707
859859 the basis of the retirement benefits to which such retired member or 708
860860 successor beneficiary was entitled on the last day of the preceding 709
861861 December or June, as applicable, except benefits based upon one per 710
862862 cent or voluntary contributions, provided (A) no cost of living 711 Raised Bill No. 438
863863
864864
865865
866866 LCO No. 2711 24 of 56
867867
868868 allowance shall exceed five per cent, and (B) if the total return earned by 712
869869 the trustees on the market value of the pension assets for the preceding 713
870870 fiscal year is less than eight and one-half per cent, any cost of living 714
871871 allowance granted shall not exceed one per cent, if such total return for 715
872872 the preceding fiscal year is greater than eight and one-half per cent but 716
873873 less than eleven and one-half per cent, any cost of living allowance 717
874874 granted shall not exceed three per cent, and if such return exceeds 718
875875 eleven and one-half per cent, any cost of living allowance granted shall 719
876876 not exceed five per cent. 720
877877 (m) Repealed by P.A. 07-186, S. 14. 721
878878 (n) Repealed by P.A. 07-186, S. 14. 722
879879 (o) On January 1, 1988, each eligible retired member who had 723
880880 rendered at least twenty-five years of full-time service prior to normal 724
881881 retirement under the provisions of subsection (a) of section 10-183f, as 725
882882 amended by this act, or such member's successor beneficiary, as defined 726
883883 in subsection (j) of this section, shall receive a single increase in 727
884884 retirement benefits provided under this chapter. Such increase shall be 728
885885 paid to such eligible members or successor beneficiaries whose monthly 729
886886 benefit as of December 31, 1987, before any reduction for an optional 730
887887 benefit payment plan, is less than eight hundred dollars, and shall be 731
888888 sufficient to increase such monthly benefit to eight hundred dollars. 732
889889 (p) On January 1, 1991, each eligible retired member who had 733
890890 rendered at least twenty-five years of full-time service at least twenty 734
891891 years of which were service in the public schools of Connecticut prior to 735
892892 early retirement before January 1, 1976, under the provisions of 736
893893 subsection (c) of section 10-183f, as amended by this act, or such 737
894894 member's successor beneficiary, as defined in subsection (j) of this 738
895895 section, shall receive a single increase in retirement benefits provided 739
896896 under this chapter. Such increase shall be paid to such eligible members 740
897897 or successor beneficiaries whose monthly benefit as of December 31, 741
898898 1990, before any reduction for an optional benefit payment plan, is less 742
899899 than eight hundred dollars, and shall be sufficient to increase such 743 Raised Bill No. 438
900900
901901
902902
903903 LCO No. 2711 25 of 56
904904
905905 monthly benefit to eight hundred dollars. 744
906906 (q) On January 1, 1999, each eligible retired member who had 745
907907 rendered at least twenty-five years of full-time service, or such 746
908908 member's successor beneficiary, as defined in subsection (j) of this 747
909909 section, shall receive a single increase in benefits provided under this 748
910910 chapter. Such increase shall be sufficient to increase the monthly benefit 749
911911 of such eligible members or successor beneficiaries, whose monthly 750
912912 benefit as of December 31, 1998, before any actuarial reduction for early 751
913913 retirement or for an optional benefit payment plan, is less than twelve 752
914914 hundred dollars and shall be sufficient to increase such monthly benefit 753
915915 to twelve hundred dollars. 754
916916 (r) No retirement benefit payable under this chapter, including any 755
917917 cost of living allowance, shall exceed the maximum dollar limit in effect 756
918918 under Section 415(b) of the Internal Revenue Code for the applicable 757
919919 limitation year, as increased in subsequent years pursuant to Section 758
920920 415(d) of the Internal Revenue Code. [A subsequent annual increase 759
921921 shall apply to a member if the increase becomes effective after the 760
922922 member retires or, if such increase becomes effective before a member 761
923923 retires, after the date on which such benefit begins to accrue.] 762
924924 Sec. 6. Section 10-183h of the general statutes is repealed and the 763
925925 following is substituted in lieu thereof (Effective July 1, 2020): 764
926926 (a) The basic monthly survivor's [monthly] benefit, subject to a family 765
927927 maximum of one thousand five hundred dollars, shall be (1) three 766
928928 hundred dollars each for a surviving spouse, plus twenty-five dollars 767
929929 for each year of service in excess of twelve years in the Connecticut 768
930930 public schools completed by the member, subject to a maximum 769
931931 monthly benefit of six hundred dollars, (2) three hundred dollars each 770
932932 for a dependent former spouse; for a dependent parent if there is no 771
933933 surviving spouse or dependent child; and for a legal guardian of any 772
934934 dependent child if there is no surviving spouse, dependent former 773
935935 spouse or dependent parent, and (3) three hundred dollars for each 774
936936 dependent child. In applying the family maximum, the benefit shall be 775 Raised Bill No. 438
937937
938938
939939
940940 LCO No. 2711 26 of 56
941941
942942 first allocated to the child or children, with the excess allocated to the 776
943943 surviving spouse and any dependent former spouse in proportion to the 777
944944 amount each would receive according to the above formula. Payment of 778
945945 the benefit shall commence on the last day of the month following the 779
946946 month of the member's death. Such benefit shall continue through the 780
947947 month preceding the month in which the survivor dies or ceases to be 781
948948 eligible for such benefit. Such benefit to the legal guardian of dependent 782
949949 children shall continue until all such children are no longer dependent, 783
950950 as defined in section 10-183b, as amended by this act. Notwithstanding 784
951951 the provisions of this subsection, any such surviving spouse, dependent 785
952952 former spouse, dependent parent or legal guardian may waive the right 786
953953 to payment of the benefit under this subsection in order that a 787
954954 designated beneficiary who is the child of the deceased member may 788
955955 receive such member's accumulated contributions plus credited 789
956956 interest. Such waiver shall be made prior to the payment of the benefit 790
957957 to any such surviving spouse, dependent former spouse, dependent 791
958958 parent or legal guardian. 792
959959 (b) [If no coparticipant option under 10-183j has become effective, a] 793
960960 A lump sum death benefit shall be payable to [the] a surviving spouse. 794
961961 Such benefit shall be one thousand dollars for five years or less of 795
962962 [Connecticut public school] service in the public schools of Connecticut, 796
963963 plus two hundred dollars for each year of credited service in the public 797
964964 schools of Connecticut in excess of five years, to a maximum of two 798
965965 thousand dollars. [For purposes of this subsection, purchased military 799
966966 service and purchased leaves of absence under subdivisions (3) and (8) 800
967967 of subsection (b) of section 10-183e shall be deemed to be Connecticut 801
968968 public school service.] If there is no surviving spouse, such benefit shall 802
969969 be equal to the member's burial expenses but not in excess of what 803
970970 would have been payable to a surviving spouse and shall be payable to 804
971971 the person who paid such expenses. No payment under this subsection 805
972972 shall be made unless application for the payment is filed with the board 806
973973 within two years of such member's death. 807
974974 (c) In lieu of such basic survivor's benefit and such lump sum death 808
975975 benefit, a sole survivor who has attained age eighteen, and is the 809 Raised Bill No. 438
976976
977977
978978
979979 LCO No. 2711 27 of 56
980980
981981 member's designated beneficiary may elect to receive an amount equal 810
982982 to such member's accumulated contributions together with credited 811
983983 interest. [When a member has designated two or more beneficiaries, 812
984984 who have, at the time of such member's death, attained age eighteen, the 813
985985 one entitled to basic survivor's benefits, if any, shall be deemed the sole 814
986986 survivor within the meaning of this subsection, provided, that all other 815
987987 designated beneficiaries relinquish all claim to any amounts that may 816
988988 be due them from the system.] 817
989989 (d) The surviving spouse of any member who, at the time of death 818
990990 was eligible for a retirement benefit other than a disability benefit and 819
991991 had not filed a waiver of the coparticipant's option, may elect to receive 820
992992 (1) a monthly benefit for life equal to the benefit payable if a one 821
993993 hundred per cent coparticipant's option had been elected, or (2) an 822
994994 amount equal to the member's accumulated contributions with credited 823
995995 interest. 824
996996 (e) If no coparticipant option has become effective and if the 825
997997 aggregate payments under this section are less than the accumulated 826
998998 mandatory contributions of a deceased member plus credited interest, 827
999999 there shall be paid to such member's designated beneficiary an amount 828
10001000 equal to the difference between such aggregate payments and such 829
10011001 accumulated mandatory contributions plus credited interest. 830
10021002 (f) Notwithstanding the provisions of subparagraph (B) of 831
10031003 subdivision [(23)] (26) of section 10-183b, as amended by this act, 832
10041004 benefits payable under this section to a surviving spouse shall not be 833
10051005 terminated because of remarriage if such surviving spouse has attained 834
10061006 the age of sixty. 835
10071007 (g) If a member who has filed an application for retirement dies prior 836
10081008 to the effective date of retirement, such member's spouse, if such spouse 837
10091009 is designated on such application as the sole beneficiary, may elect to 838
10101010 receive either (1) the preretirement death benefits as set forth in this 839
10111011 section, or (2) the benefit payment option selected by the deceased 840
10121012 member on such retirement application. 841 Raised Bill No. 438
10131013
10141014
10151015
10161016 LCO No. 2711 28 of 56
10171017
10181018 Sec. 7. Subsection (a) of section 10-183i of the general statutes is 842
10191019 repealed and the following is substituted in lieu thereof (Effective July 1, 843
10201020 2020): 844
10211021 (a) A member may make voluntary contributions to the system and 845
10221022 may, no more than once, withdraw such voluntary contributions from 846
10231023 the system under rules of the board. Any voluntary contribution shall 847
10241024 be made solely by payroll deduction of an amount subject to state, 848
10251025 federal or local tax in the tax or income year in which such voluntary 849
10261026 contribution is made. Voluntary contributions shall be subject to the 850
10271027 limitations imposed under Section 415(c) of the Internal Revenue Code 851
10281028 for the applicable limitation year. Such contributions shall earn credited 852
10291029 interest. Upon retirement such member shall elect to receive the 853
10301030 accumulated contributions plus credited interest either in a lump sum 854
10311031 or in the form of an actuarially equivalent annuity for life. Such lump 855
10321032 sum, [or] if elected, shall be paid not later than three months after the 856
10331033 effective date of retirement, except the board may delay payment of 857
10341034 such lump sum in the case of extenuating circumstances. If such delay 858
10351035 occurs, the board shall submit a written notice to the member explaining 859
10361036 the nature of the extenuating circumstances and an estimate as to when 860
10371037 such lump sum shall be paid. Payment of such annuity, if elected, shall 861
10381038 [be paid or commenced to be paid] commence when the first payment 862
10391039 of such member's other retirement benefit is made. If such member dies 863
10401040 before the effective date of his or her retirement, the accumulated 864
10411041 contributions plus credited interest shall be paid to such member's 865
10421042 designated beneficiary. 866
10431043 Sec. 8. Section 10-183j of the general statutes is repealed and the 867
10441044 following is substituted in lieu thereof (Effective July 1, 2020): 868
10451045 (a) [In lieu of a normal, early, proratable or deferred vested benefit, 869
10461046 a] A member [may] shall elect [either] one of the benefit options 870
10471047 described in [subsections] subsection (b), [and] (c) or (d) of this section. 871
10481048 (b) The Plan N allowance may be elected in which the member 872
10491049 receives the benefit described in section 10-183g, as amended by this act. 873 Raised Bill No. 438
10501050
10511051
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10531053 LCO No. 2711 29 of 56
10541054
10551055 [(b) A] (c) The Plan C period certain option may be elected in which 874
10561056 the member receives an actuarially reduced benefit for a fixed period of 875
10571057 time selected by such member and for the remainder of such member's 876
10581058 life. Such member may select a fixed period of twenty-five years or such 877
10591059 shorter period as the board may offer. If such member dies before 878
10601060 receiving the benefit for the selected period, such benefit shall be paid 879
10611061 to the member's designated beneficiary for the remainder of such 880
10621062 period. If such member's designated beneficiary dies before such 881
10631063 member, or if such member has no designated beneficiary and such 882
10641064 member dies before receiving the benefit for the selected period, any 883
10651065 remaining benefit shall be paid to such member's estate as a commuted 884
10661066 value. If there are multiple designated beneficiaries and a designated 885
10671067 beneficiary dies before the end of such period, such beneficiary's 886
10681068 remaining benefit shall be equally allocated to the remaining designated 887
10691069 beneficiaries. If a sole designated beneficiary dies before the end of such 888
10701070 period, any remaining benefit shall be paid to such designated 889
10711071 beneficiary's estate as a commuted value. 890
10721072 [(c) A] (d) (1) The Plan D coparticipant's option may be elected in 891
10731073 which the member receives an actuarially reduced benefit as provided 892
10741074 in [subsection (d)] subdivision (2) of this [section] subsection and upon 893
10751075 such member's death, one-third, one-half, two-thirds, three-fourths or 894
10761076 all of such amount is paid to such member's designated beneficiary for 895
10771077 life. Any member who elects said option shall designate a sole 896
10781078 designated beneficiary, who shall be such member's coparticipant. Such 897
10791079 designation shall be irrevocable and shall terminate only as provided in 898
10801080 subparagraph (B) of subdivision (2) of this subsection. With respect to 899
10811081 any benefits which become effective on or after January 1, 2001, if 900
10821082 twenty-five per cent of the aggregate benefits paid to the member or 901
10831083 such member's designated beneficiary are, upon the death of such 902
10841084 member or such designated beneficiary, less than such member's 903
10851085 accumulated contributions plus credited interest, the estate of such 904
10861086 member or such designated beneficiary, as appropriate, shall be paid a 905
10871087 lump sum amount equal to the difference between such aggregate 906
10881088 benefits paid and such accumulated contributions plus credited interest. 907 Raised Bill No. 438
10891089
10901090
10911091
10921092 LCO No. 2711 30 of 56
10931093
10941094 [(d)] (2) The benefits payable to such member and such coparticipant 908
10951095 shall be computed as follows: 909
10961096 [(1)] (A) The benefit payable to such member at retirement and to 910
10971097 such coparticipant upon such member's death shall be the actuarial 911
10981098 equivalent of the normal, early, [or] proratable or deferred vested 912
10991099 benefit for which such member is eligible and based upon such 913
11001100 member's age at retirement and the age of such coparticipant on such 914
11011101 retirement date. In the event the member predeceases the coparticipant, 915
11021102 upon the death of the coparticipant, any remaining value in the account 916
11031103 shall be paid in a lump sum to the coparticipant's estate. In the event the 917
11041104 coparticipant predeceases the member, upon divorce or, on or after July 918
11051105 1, 2020, upon legal separation, the member's actuarially reduced benefit 919
11061106 shall revert to the unreduced benefit provided for under Plan N and, 920
11071107 upon the member's death, any remaining value in the member's account 921
11081108 shall be paid to the member's designated beneficiary, if any, otherwise 922
11091109 to the member's estate. 923
11101110 [(2) The benefit payable to such coparticipant of such member who 924
11111111 dies after such option first becomes effective but before retirement shall 925
11121112 be the actuarial equivalent of the normal, early or proratable benefit for 926
11131113 which such member was eligible based on such member's age at death 927
11141114 and the age of such coparticipant on such date of death.] 928
11151115 [(3) (A)] (B) (i) Except as provided in subparagraph [(B)] (B)(ii) of this 929
11161116 subdivision, a coparticipant option shall be terminated, for any member 930
11171117 whose designated coparticipant dies or is divorced from the member 931
11181118 after the member's retirement, on the date of such death or divorce. Such 932
11191119 member shall thereupon be paid the normal, early or proratable 933
11201120 retirement benefit for which the member is eligible. [(B)] (ii) On and after 934
11211121 July 1, 2016, upon the divorce or, on or after July 1, 2020, the divorce or 935
11221122 legal separation of a member and such member's designated 936
11231123 coparticipant subsequent to the member's retirement, the member may 937
11241124 retain the coparticipant designation and the coparticipant option elected 938
11251125 at the time of retirement by filing a [qualified] domestic relations order 939
11261126 with the board. 940 Raised Bill No. 438
11271127
11281128
11291129
11301130 LCO No. 2711 31 of 56
11311131
11321132 Sec. 9. Section 10-183k of the general statutes is repealed and the 941
11331133 following is substituted in lieu thereof (Effective July 1, 2020): 942
11341134 (a) [A] Any member who voluntarily or involuntarily terminates 943
11351135 service with an employer prior to retirement shall be entitled to have 944
11361136 refunded his or her accumulated voluntary contributions with credited 945
11371137 interest. 946
11381138 (b) A member who voluntarily or involuntarily terminates service 947
11391139 with an employer prior to retirement with less than five years' credited 948
11401140 service in the public schools of Connecticut shall be entitled to have 949
11411141 refunded his or her accumulated regular contributions with credited 950
11421142 interest. A member who voluntarily or involuntarily terminates service 951
11431143 with his or her employer prior to retirement or death with more than 952
11441144 five years of credited service shall be entitled to have refunded his or 953
11451145 her accumulated regular contributions with credited interest and his or 954
11461146 her accumulated one per cent contributions withheld prior to July 1, 955
11471147 1989. If a member elects a refund pursuant to this subsection, all credited 956
11481148 service shall be cancelled and any rights to benefits provided by this 957
11491149 chapter shall be extinguished, except as provided in subsection (d) of 958
11501150 this section. 959
11511151 (c) A member who voluntarily or involuntarily terminates service 960
11521152 with his or her employer prior to retirement with more than ten years' 961
11531153 credited service in the public schools of Connecticut but prior to 962
11541154 retirement may elect to receive in lieu of the benefits provided by this 963
11551155 chapter a refund of his or her accumulated contributions with credited 964
11561156 interest as provided in subsection (b) of this section. If such member 965
11571157 elects a refund, all credited service shall be cancelled and any rights to 966
11581158 benefits provided by this chapter shall be extinguished, except as 967
11591159 provided in subsection (d) of this section. If such member does not elect 968
11601160 a refund, but dies before age sixty or before receiving the deferred 969
11611161 vested benefit, if later, such member's [accumulated voluntary 970
11621162 contributions,] accumulated regular contributions with credited interest 971
11631163 and accumulated one per cent contributions withheld prior to July 1, 972
11641164 1989, [together with credited interest] shall be paid to such member's 973 Raised Bill No. 438
11651165
11661166
11671167
11681168 LCO No. 2711 32 of 56
11691169
11701170 designated beneficiary. 974
11711171 (d) A member who receives a refund and returns to service shall be 975
11721172 regarded as a new member unless such member repays, subject to the 976
11731173 requirements established by the board, the amount refunded, other than 977
11741174 voluntary contributions and the interest thereon, together with credited 978
11751175 interest compounded from the date interest was last credited to such 979
11761176 member's account to the date of repayment. The credited service 980
11771177 accumulated before termination and any unrefunded one per cent 981
11781178 contributions withheld prior to July 1, 1989, and credited interest shall 982
11791179 be restored to a member who makes such repayment. Resto red 983
11801180 contributions and interest shall be credited with credited interest for the 984
11811181 period between the last day for which interest was credited on such 985
11821182 contributions and such member's [return to service] date of repayment. 986
11831183 Sec. 10. Section 10-183l of the general statutes is repealed and the 987
11841184 following is substituted in lieu thereof (Effective July 1, 2020): 988
11851185 (a) (1) On and after July 1, 1991, the management of the system shall 989
11861186 continue to be vested in the Teachers' Retirement Board, whose 990
11871187 members shall include the Treasurer, the Secretary of the Office of Policy 991
11881188 and Management and the Commissioner of Education, or their 992
11891189 designees, who shall be voting members of the board, ex officio. (2) On 993
11901190 or before June 15, 1985, and quadrennially thereafter, the members of 994
11911191 the system shall elect from their number, in a manner prescribed by said 995
11921192 board, two persons to serve as members of said board for terms of four 996
11931193 years beginning July first following such election. Both of such persons 997
11941194 shall be active teachers who shall be nominated by the members of the 998
11951195 system who are not retired and elected by all the members of the system. 999
11961196 On or before July 1, 1991, and quadrennially thereafter, the members of 1000
11971197 the system shall elect from their number, in a manner prescribed by said 1001
11981198 board, three persons to serve as members of said board for terms of four 1002
11991199 years beginning July first following such election. Two of such persons 1003
12001200 shall be retired teachers who shall be nominated by the retired members 1004
12011201 of the system and elected by all the members of the system and one shall 1005
12021202 be an active teacher who shall be nominated by the members of the 1006 Raised Bill No. 438
12031203
12041204
12051205
12061206 LCO No. 2711 33 of 56
12071207
12081208 system who are not retired and elected by all the members of the system. 1007
12091209 (3) On or before July 1, 2011, and quadrennially thereafter, the members 1008
12101210 of the system shall elect from their number, in a manner prescribed by 1009
12111211 said board, one person to serve as a member of said board for a term of 1010
12121212 four years beginning July first following such election. Such person shall 1011
12131213 be an active teacher who shall be nominated by the members of the 1012
12141214 system who are not retired, elected by all the members of the system 1013
12151215 and a member of an exclusive representative of a teachers' bargaining 1014
12161216 unit that is not represented by the members of the board elected under 1015
12171217 subdivision (2) of this subsection. (4) If a vacancy occurs in the positions 1016
12181218 filled by the members of the system who are not retired, said board shall 1017
12191219 elect a member of the system who is not retired to fill the unexpired 1018
12201220 portion of the term. If a vacancy occurs in the positions filled by the 1019
12211221 retired members of the system, said board shall elect a retired member 1020
12221222 of the system to fill the unexpired portion of the term. The Governor 1021
12231223 shall appoint five public members to said board in accordance with the 1022
12241224 provisions of section 4-9a, one of whom shall be the mayor, first 1023
12251225 selectman or chief elected official of a municipality. On and after the 1024
12261226 effective date of this section, the Governor shall fill the next vacant 1025
12271227 position on the board that is appointed by the Governor with a person 1026
12281228 who is the mayor, first selectman or chief elected official of a 1027
12291229 municipality. The members of the board shall serve without 1028
12301230 compensation, but shall be reimbursed for any expenditures or loss of 1029
12311231 salary or wages which they incur through service on the board. [All 1030
12321232 decisions of the board shall require the approval of six members of the 1031
12331233 board or a majority of the members who are present, whichever is 1032
12341234 greater] A majority of the membership of the board shall constitute a 1033
12351235 quorum for the transaction of any business. 1034
12361236 (b) In carrying out its duties, the board may employ [a secretary] an 1035
12371237 administrative officer with a title established by the board, who shall 1036
12381238 also serve as secretary of the board, and such [clerical and other 1037
12391239 assistance] staff as may be necessary. Their salaries shall be paid by said 1038
12401240 board with the approval of the Secretary of the Office of Policy and 1039
12411241 Management. Said board shall employ the services of one or more 1040 Raised Bill No. 438
12421242
12431243
12441244
12451245 LCO No. 2711 34 of 56
12461246
12471247 actuaries, each of which shall be an individual or firm having on its staff 1041
12481248 a fellow of the Society of Actuaries, to carry out the actuarial duties of 1042
12491249 this section and sections 10-183b, as amended by this act, 10-183r, and 1043
12501250 10-183z and for such related purposes as the board deems advisable. 1044
12511251 The cost of such services shall be charged to the funds provided for in 1045
12521252 section 10-183r. Said board shall arrange for such actuary to prepare an 1046
12531253 actuarial valuation of the assets and liabilities of the system as of June 1047
12541254 30, 1980, and at least once every two years thereafter. On the basis of 1048
12551255 reasonable actuarial assumptions approved by the board, such actuary 1049
12561256 shall determine the [normal cost] actuarially determined employer 1050
12571257 contribution required to meet the actuarial cost of current service and 1051
12581258 the unfunded accrued liability. Commencing December 1, 2002, such 1052
12591259 valuation shall be completed prior to December first biennially. Said 1053
12601260 board shall adopt all needed actuarial tables and may adopt regulations 1054
12611261 and rules not inconsistent with this chapter, including regulations and 1055
12621262 rules for payment of purchased service credits and repayment of 1056
12631263 previously withdrawn accumulated contributions. Said board shall 1057
12641264 establish [such funds as are] an operational budget necessary for the 1058
12651265 management of the system. The board may enter into such contractual 1059
12661266 agreements, in accordance with established procedures, as may be 1060
12671267 necessary for the discharge of its duties. 1061
12681268 Sec. 11. Section 10-183n of the general statutes is repealed and the 1062
12691269 following is substituted in lieu thereof (Effective July 1, 2020): 1063
12701270 (a) Each employer shall: (1) Before employing a teacher notify such 1064
12711271 teacher of the provisions of this chapter applicable to such teacher; (2) 1065
12721272 distribute, post or otherwise disseminate in a timely manner, to teachers 1066
12731273 in its employ, any notices, bulletins, newsletters, annual statements of 1067
12741274 account and other information supplied by the board for the purpose of 1068
12751275 properly notifying teachers of their rights and obligations under the 1069
12761276 system; (3) furnish to the board at times designated by said board such 1070
12771277 reports and information as the board deems necessary or desirable for 1071
12781278 the proper administration of the system; and (4) deduct each month 1072
12791279 [seven] eight and one-fourth per cent of one-tenth of such teacher's 1073
12801280 annual salary rate as directed by said board and any additional 1074 Raised Bill No. 438
12811281
12821282
12831283
12841284 LCO No. 2711 35 of 56
12851285
12861286 voluntary deductions as authorized by such teacher. [, except that no 1075
12871287 deductions shall be made from any amounts received by regularly 1076
12881288 employed teachers for special teaching assignments rendered for the 1077
12891289 State Board of Education or the Board of Regents for Higher Education 1078
12901290 unless the salary for such special teaching assignment is equal to or 1079
12911291 greater than the minimum salary paid for such teacher's regular 1080
12921292 teaching assignment.] In the event the employer does not deduct the 1081
12931293 amount set forth in subdivision (4) of this subsection, a member shall 1082
12941294 remit such payment to the board in order to receive the annual salary 1083
12951295 rate credit for the amount on which the payment relates. If the employer 1084
12961296 deducted but failed to remit the mandatory contribution amount, the 1085
12971297 employer shall be responsible for the payment of both the mandatory 1086
12981298 contribution amount plus the credited interest due from the date the 1087
12991299 payment of the mandatory contribution amount was required to be 1088
13001300 made by the employer to the date of payment to the system. In the event 1089
13011301 the mandatory contribution amount is not received by the system, the 1090
13021302 member will be ineligible for the associated service credit. The board 1091
13031303 shall not be required to refund credited interest for payments made 1092
13041304 prior to the date such deduction was required. 1093
13051305 (b) Each local treasurer or other person having custody of amounts 1094
13061306 deducted under this chapter by an employer shall transmit and report 1095
13071307 such amounts to the board so that they are received by said board no 1096
13081308 later than the fifth business day of the following month. On and after 1097
13091309 July 1, 2001, all such amounts shall be transmitted via electronic transfer 1098
13101310 of funds. Such amounts shall at all times be the property of the system 1099
13111311 and while in the custody of such local treasurer or other person such 1100
13121312 person is a fiduciary with respect to such amounts and shall discharge 1101
13131313 a fiduciary's responsibilities solely for the benefit of the system. If such 1102
13141314 amounts are not accompanied by the reports and information deemed 1103
13151315 necessary or desirable by the board for the proper administration of the 1104
13161316 system, in accordance with subsection (a) of this section, the board may 1105
13171317 deem such amounts not received by the fifth business day of the 1106
13181318 following month for purposes of this subsection until the date on which 1107
13191319 such reports and information are received. Said board shall be entitled 1108 Raised Bill No. 438
13201320
13211321
13221322
13231323 LCO No. 2711 36 of 56
13241324
13251325 to receive from an employer interest at the rate of nine per cent per year 1109
13261326 from the due date on all amounts deducted by such employer and not 1110
13271327 received by said board by the fifth business day of the following month. 1111
13281328 Interest at the rate of nine per cent per year shall be compounded 1112
13291329 annually on the interest assessed from the date payment is received to 1113
13301330 the date the interest assessment is paid. Such interest shall be treated as 1114
13311331 an amount earned by assets of the system. 1115
13321332 (c) All amounts received by the board under this section shall be 1116
13331333 forwarded to the State Treasurer. 1117
13341334 (d) Each member shall file with the board [an enrollment and such 1118
13351335 other] such forms, documents and information as the board deems 1119
13361336 necessary or desirable for the proper administration of the system. 1120
13371337 Sec. 12. Section 10-183o of the general statutes is repealed and the 1121
13381338 following is substituted in lieu thereof (Effective July 1, 2020): 1122
13391339 During any period when this country is at war, a board of education 1123
13401340 may [cause to be paid] pay to the retirement board the mandatory 1124
13411341 contributions of members who were in its employ at the time of entering 1125
13421342 into the armed forces, as defined in section 27-103, [. Such contributions 1126
13431343 as may be approved by the board of education shall be included in the 1127
13441344 annual itemized budget estimate of the costs of maintenance of public 1128
13451345 schools for the ensuing year] on behalf of such members, in accordance 1129
13461346 with the Uniformed Services Employment and Reemployment Rights 1130
13471347 Act of 1994, 38 USC Chapter 43, as amended from time to time. 1131
13481348 Sec. 13. Section 10-183p of the general statutes is repealed and the 1132
13491349 following is substituted in lieu thereof (Effective July 1, 2020): 1133
13501350 [(a) Any member of either the state employees retirement system or 1134
13511351 the teachers' retirement system, if eligible to belong to the other or in 1135
13521352 accordance with the provisions of subsection (h) of section 5-160 or 1136
13531353 section 5-192e, may transfer from the one to which such member 1137
13541354 belongs to the other or prior to the first of the month following three 1138
13551355 months after June 28, 1985, to an alternate retirement program, as 1139 Raised Bill No. 438
13561356
13571357
13581358
13591359 LCO No. 2711 37 of 56
13601360
13611361 defined in subsection (u) of section 5-154, when authorized to do so, in 1140
13621362 the case of a transfer between said systems or a transfer from the 1141
13631363 teachers' retirement system to an alternate retirement program, by the 1142
13641364 concurrent action of the State Employees Retirement Commission and 1143
13651365 the Teachers' Retirement Board. No person shall be eligible to 1144
13661366 membership in more than one such system or program at the same time, 1145
13671367 provided nothing contained herein shall affect the rights of any person 1146
13681368 who, on June 18, 1953, was a member of both systems. Any member of 1147
13691369 the teachers' retirement system who elects or has elected to participate 1148
13701370 in an alternate retirement program shall receive a refund of all 1149
13711371 contributions made by him into said system in lieu of any benefits under 1150
13721372 said system. Any former state employee who was, during such 1151
13731373 employee's period of employment, eligible to belong to either the state 1152
13741374 employees retirement system or the teachers' retirement system and 1153
13751375 who withdrew from the state employees retirement system after July 1, 1154
13761376 1940, to become a member of the teachers' retirement system may be 1155
13771377 credited in the teachers' retirement system with such member's period 1156
13781378 of state service upon making application in writing to the secretary of 1157
13791379 the Teachers' Retirement Board and paying contributions for such 1158
13801380 period of service with credited interest from the date such service was 1159
13811381 rendered. 1160
13821382 (b) No person who has creditable service as a member of the state 1161
13831383 employees retirement system and who transfers, on or after May 6, 1975, 1162
13841384 to the teachers' retirement system shall be entitled to benefits from the 1163
13851385 teachers' retirement system until such person has been a member of and 1164
13861386 contributed to said system for a period of one year. If such transferee 1165
13871387 dies or becomes disabled before completion of that one year, such 1166
13881388 transfer shall be deemed to be cancelled and such person shall be 1167
13891389 deemed to be a member of the state employees retirement system.] 1168
13901390 Any member who is also a participant in an alternate retirement 1169
13911391 program, as defined in subsection (u) of section 5-154, the state 1170
13921392 employees retirement system or any other retirement system may 1171
13931393 purchase service credit in the Connecticut teachers' retirement system 1172
13941394 in accordance with section 10-183e, as amended by this act, provided 1173 Raised Bill No. 438
13951395
13961396
13971397
13981398 LCO No. 2711 38 of 56
13991399
14001400 such member withdraws any and all employee funds and forfeits all 1174
14011401 employer contributions and earnings thereon in the respective system, 1175
14021402 other than the Social Security System or the nonregular military 1176
14031403 retirement system under 10 USC Chapter 1223, as amended from time 1177
14041404 to time. No person shall be eligible for membership in more than one 1178
14051405 such system or program at the same time for the same service. 1179
14061406 Sec. 14. Section 10-183q of the general statutes is repealed and the 1180
14071407 following is substituted in lieu thereof (Effective July 1, 2020): 1181
14081408 (a) The portion of each member's compensation deducted or to be 1182
14091409 deducted under this chapter and all rights of each member and of each 1183
14101410 survivor to receive benefits or other payments under this chapter shall 1184
14111411 be exempt from the operation of any laws relating to bankruptcy or 1185
14121412 insolvency; and, except as provided in subsection (b) of this section, 1186
14131413 shall not be subject to garnishment, attachment, execution, levy or any 1187
14141414 other similar legal process of any court. [No] Except as provided in 1188
14151415 subsection (c) of this section, assignment of any right of a member or 1189
14161416 any other person to receive benefits or other payments from the system 1190
14171417 shall be valid. The funds of the system invested in personal property 1191
14181418 shall be exempt from taxation. 1192
14191419 (b) The portion of each member's compensation deducted or to be 1193
14201420 deducted under this chapter and all rights of each member and of each 1194
14211421 survivor to receive benefits or other payments under this chapter shall 1195
14221422 be subject to attachment in favor of an alternate payee as set forth in an 1196
14231423 approved domestic relations order. 1197
14241424 (c) A distributee may elect, at the time and in the manner prescribed 1198
14251425 by the board, to have any portion of an eligible rollover distribution or 1199
14261426 trustee to trustee transfer paid directly to an eligible retirement plan by 1200
14271427 way of a direct rollover. Taxable funds may be distributed as a rollover 1201
14281428 if so elected by a distributee. For purposes of this subsection, (1) 1202
14291429 "distributee" means a member, a member's surviving spouse or a 1203
14301430 member's former spouse who is an alternate payee under an approved 1204
14311431 domestic relations order; and (2) "eligible rollover distribution" and 1205 Raised Bill No. 438
14321432
14331433
14341434
14351435 LCO No. 2711 39 of 56
14361436
14371437 "eligible retirement plan" each have the meaning provided in Section 1206
14381438 402 of the Internal Revenue Code of 1986, or any subsequent 1207
14391439 corresponding internal revenue code of the United States, as amended 1208
14401440 from time to time, except (A) a qualified trust shall be considered an 1209
14411441 eligible retirement plan only if it accepts the distributee's eligible 1210
14421442 rollover distribution; and (B) in the case of an eligible rollover 1211
14431443 distribution to a surviving spouse, an eligible retirement plan shall 1212
14441444 mean an individual retirement account or an individual retirement 1213
14451445 annuity as defined in Section 408 of said Internal Revenue Code. 1214
14461446 Sec. 15. Section 10-183t of the general statutes is repealed and the 1215
14471447 following is substituted in lieu thereof (Effective July 1, 2020): 1216
14481448 (a) The retirement board shall offer one or more health benefit plans 1217
14491449 to: Any member receiving retirement benefits or a disability allowance 1218
14501450 from the system; the spouse or surviving spouse of such member, and a 1219
14511451 disabled dependent of such member if there is no spouse or surviving 1220
14521452 spouse, provided such member, spouse, surviving spouse, or disabled 1221
14531453 dependent is participating in Medicare Part A hospital insurance and 1222
14541454 Medicare Part B medical insurance. The board may offer one or more 1223
14551455 basic plans, the cost of which to any such member, spouse, surviving 1224
14561456 spouse or disabled dependent shall be one-third of the basic plan's 1225
14571457 premium equivalent, and one or more optional plans, provided such 1226
14581458 member, spouse, surviving spouse or disabled dependent shall pay one-1227
14591459 third of the basic plan's premium equivalent plus the difference in cost 1228
14601460 between any such basic plans and any such optional plans. The board 1229
14611461 shall designate those plans which are basic and those plans which are 1230
14621462 optional for the purpose of determining such cost and the amount to be 1231
14631463 charged or withheld from benefit payments for such plans. The 1232
14641464 surviving spouse of a member, or a disabled dependent of a member if 1233
14651465 there is no surviving spouse, shall not be ineligible for participation in 1234
14661466 any such plan solely because such surviving spouse or disabled 1235
14671467 dependent is not receiving benefits from the system. With respect to any 1236
14681468 person participating in any such plan, the state shall appropriate to the 1237
14691469 board one-third of the cost of such basic plan or plans, or one-third of 1238
14701470 the cost of the rate in effect during the fiscal year ending June 30, 1998, 1239 Raised Bill No. 438
14711471
14721472
14731473
14741474 LCO No. 2711 40 of 56
14751475
14761476 whichever is greater. [On and after July 1, 2012, federal reimbursements 1240
14771477 received by the retirement board under the retiree drug subsidy 1241
14781478 provisions of Medicare Part D shall be used to offset amounts 1242
14791479 appropriated by the state to the board pursuant to this subsection.] 1243
14801480 (b) Any member who is receiving retirement benefits or a disability 1244
14811481 allowance from the system, the spouse or surviving spouse of such 1245
14821482 member, or a disabled dependent of such member if there is no spouse 1246
14831483 or surviving spouse, and who is not participating in Medicare Part A 1247
14841484 hospital insurance and Medicare Part B medical insurance, may fully 1248
14851485 participate in any or all group health insurance plans maintained for 1249
14861486 active teachers by such member's last employing board of education, or 1250
14871487 by the state in the case of a member who was employed by the state, 1251
14881488 provided such member either meets the state's eligibility criteria for 1252
14891489 health insurance or is eligible to participate in the group health 1253
14901490 insurance plan offered by such member's last employing board of 1254
14911491 education, upon payment to such board of education or to the state, as 1255
14921492 applicable, by such member, spouse, surviving spouse or disabled 1256
14931493 dependent, of the premium charged for his form of coverage. Such 1257
14941494 premium shall be no greater than that charged for the same form of 1258
14951495 coverage for active teachers. The spouse, surviving spouse or disabled 1259
14961496 dependent shall not be ineligible for participation in any such plan 1260
14971497 solely because such spouse, surviving spouse or disabled dependent is 1261
14981498 not receiving benefits from the system. No person shall be ineligible for 1262
14991499 participation in such plans for failure to enroll in such plans at the time 1263
15001500 the member's retirement benefit or disability allowance became 1264
15011501 effective. Nothing in this subsection shall be construed to impair or alter 1265
15021502 the provisions of any collective bargaining agreement relating to the 1266
15031503 payment by a board of education of group health insurance premiums 1267
15041504 on behalf of any member receiving benefits from the system. Prior to the 1268
15051505 cancellation of coverage for any member, spouse, surviving spouse or 1269
15061506 disabled dependent for failure to pay the required premiums or cost 1270
15071507 due, the board of education or the state, if applicable, shall notify the 1271
15081508 Teachers' Retirement Board of its intention to cancel such coverage at 1272
15091509 least thirty days prior to the date of cancellation. Absent any contractual 1273 Raised Bill No. 438
15101510
15111511
15121512
15131513 LCO No. 2711 41 of 56
15141514
15151515 provisions to the contrary, the payments made pursuant to subsection 1274
15161516 (c) of this section shall be first applied to any cost borne by the member, 1275
15171517 spouse, surviving spouse or disabled dependent participating in any 1276
15181518 such plan. As used in this subsection, "last employing board of 1277
15191519 education" means the board of education by which such member was 1278
15201520 employed when such member filed his initial application for retirement, 1279
15211521 and "health insurance plans" means hospital, medical, major medical, 1280
15221522 dental, prescription drug or auditory benefit plans that are available to 1281
15231523 active teachers. 1282
15241524 (c) (1) On and after July 1, 2000, the board shall pay a subsidy equal 1283
15251525 to the subsidy paid in the fiscal year ending June 30, 2000, to the board 1284
15261526 of education or to the state, if applicable, on behalf of any member who 1285
15271527 is receiving retirement benefits or a disability allowance from the 1286
15281528 system, the spouse of such member, the surviving spouse of such 1287
15291529 member, or a disabled dependent of such member if there is no spouse 1288
15301530 or surviving spouse, who is participating in a health insurance plan 1289
15311531 maintained by a board of education or by the state, if applicable. Such 1290
15321532 payment shall not exceed the actual cost of such insurance. 1291
15331533 (2) With respect to any person participating in any such plan 1292
15341534 pursuant to subsection (b) of this section, the state shall appropriate to 1293
15351535 the board one-third of the cost of the subsidy, except that, for the fiscal 1294
15361536 year ending June 30, 2013, the state shall appropriate twenty-five per 1295
15371537 cent of the cost of the subsidy. On and after July 1, 2018, for the fiscal 1296
15381538 year ending June 30, 2019, and for each fiscal year thereafter, fifty per 1297
15391539 cent of the total amount appropriated by the state in each such fiscal 1298
15401540 year for the state's share of the cost of such subsidies shall be paid to the 1299
15411541 board on or before July first of such fiscal year, and the remaining fifty 1300
15421542 per cent of such total amount shall be paid to the board on or before 1301
15431543 December first of such fiscal year. 1302
15441544 (3) No payment to a board of education pursuant to this subsection 1303
15451545 may be used to reduce the amount of any premium payment on behalf 1304
15461546 of any such member, spouse, surviving spouse, or disabled dependent, 1305
15471547 made by such board pursuant to any agreement in effect on July 1, 1990. 1306 Raised Bill No. 438
15481548
15491549
15501550
15511551 LCO No. 2711 42 of 56
15521552
15531553 On and after July 1, 2012, the board shall pay a subsidy of two hundred 1307
15541554 twenty dollars per month on behalf of the member, spouse or the 1308
15551555 surviving spouse of such member who: (A) Has attained the normal 1309
15561556 retirement age to participate in Medicare, (B) is not eligible for Medicare 1310
15571557 Part A without cost, and (C) contributes at least two hundred twenty 1311
15581558 dollars per month towards his or her medical and prescription drug 1312
15591559 plan provided by the board of education. 1313
15601560 (d) The Treasurer shall establish a separate retired teachers' health 1314
15611561 insurance premium account within the Teachers' Retirement Fund. 1315
15621562 Commencing July 1, 1989, and annually thereafter all health benefit plan 1316
15631563 contributions withheld under this chapter in excess of five hundred 1317
15641564 thousand dollars shall, upon deposit in the Teachers' Retirement Fund, 1318
15651565 be credited to such account. Interest derived from the investment of 1319
15661566 funds in the account shall be credited to the account. Funds in the 1320
15671567 account shall be used for (1) payments to boards of education pursuant 1321
15681568 to subsection (c) of this section and for payment of premiums on behalf 1322
15691569 of members, spouses of members, surviving spouses of members or 1323
15701570 disabled dependents of members participating in one or more health 1324
15711571 insurance plans pursuant to subsection (a) of this section in an amount 1325
15721572 equal to the difference between the amount paid pursuant to subsection 1326
15731573 (a) of this section and the amount paid pursuant to subsection (c) of this 1327
15741574 section, and (2) payments for professional fees associated with the 1328
15751575 administration of the health benefit plans offered pursuant to this 1329
15761576 section. If, during any fiscal year, there are insufficient funds in the 1330
15771577 account for the purposes of all such payments, the General Assembly 1331
15781578 shall appropriate sufficient funds to the account for such purpose. 1332
15791579 (e) (1) Not later than the first business day of February, May, August 1333
15801580 and November, annually, each employer shall submit to the board, in a 1334
15811581 format established by the board, any information the board determines 1335
15821582 to be necessary with respect to the additions, deletions and premium 1336
15831583 changes for the health insurance subsidy program under subsection (c) 1337
15841584 of this section. Any report received by the board after the due date shall 1338
15851585 be processed in the following quarterly cycle. Failure to timely submit 1339
15861586 the quarterly report shall result in a delay of the subsidy for that quarter, 1340 Raised Bill No. 438
15871587
15881588
15891589
15901590 LCO No. 2711 43 of 56
15911591
15921592 which shall be paid as a retroactive subsidy as provided in subdivision 1341
15931593 (2) of this subsection. 1342
15941594 (2) Retroactive subsidy payments shall be limited to six months prior 1343
15951595 to the first day of the month in which the board receives an untimely 1344
15961596 report with the new eligible retired members or dependents included. 1345
15971597 The board shall pay the subsidy retroactively to the effective date of the 1346
15981598 disability, provided the eligible members or dependents are added to 1347
15991599 the report not later than the first quarter following the board's approval 1348
16001600 of the disability and the member's disability allowance is initiated 1349
16011601 within four months of board approval. The employer shall hold any 1350
16021602 member or dependent harmless for any costs associated with, arising 1351
16031603 from or out of the loss of the benefit of the subsidy as a result of such 1352
16041604 employer's untimely or inaccurate filing of the quarterly report. 1353
16051605 Sec. 16. Section 10-183v of the 2020 supplement to the general statutes 1354
16061606 is repealed and the following is substituted in lieu thereof (Effective July 1355
16071607 1, 2020): 1356
16081608 (a) (1) Except as provided in subdivisions (2) and (3) of this subsection 1357
16091609 and subsection (b) of this section, a teacher receiving retirement benefits 1358
16101610 from the system may not be employed by an employer in a teaching 1359
16111611 position receiving compensation paid out of public money appropriated 1360
16121612 for school purposes except that such teacher may be employed in such 1361
16131613 a position and receive no more than forty-five per cent of the maximum 1362
16141614 salary level for the assigned position for each school year. Any teacher 1363
16151615 who receives in excess of such amount shall reimburse the board for the 1364
16161616 amount of such excess. 1365
16171617 (2) Commencing July 1, 2016, to June 30, 2020, inclusive, the 1366
16181618 provisions of subdivision (1) of this subsection establishing a limitation 1367
16191619 on the compensation of a reemployed teacher and requiring the 1368
16201620 reimbursement of any amount received in excess of that limitation shall 1369
16211621 not apply to a teacher who (A) is receiving retirement benefits from the 1370
16221622 system based on thirty-four or more years of credited service, (B) is 1371
16231623 reemployed as a teacher in a district designated as an alliance district 1372 Raised Bill No. 438
16241624
16251625
16261626
16271627 LCO No. 2711 44 of 56
16281628
16291629 pursuant to section 10-262u, and (C) was serving as a teacher in that 1373
16301630 district on July 1, 2015. 1374
16311631 (3) On and after July 1, 2016, a teacher receiving retirement benefits 1375
16321632 from the system may be employed in a teaching position and receive (A) 1376
16331633 compensation paid out of public money appropriated for school 1377
16341634 purposes, (B) health insurance benefits, and (C) other employment 1378
16351635 benefits provided to active teachers employed by such school system, 1379
16361636 provided such teacher does not receive a retirement income during such 1380
16371637 employment. Payment of such teacher's retirement income shall resume 1381
16381638 on the first day of the month following the termination of such 1382
16391639 employment. The compensation under subparagraph (A) of this 1383
16401640 subdivision shall be provided in accordance with subsection (c) of this 1384
16411641 section. 1385
16421642 (4) Notice of employment under this subsection shall be sent to the 1386
16431643 board by the employer at the beginning and end of the school year, or 1387
16441644 assignment within the school year when reemployed for less than the 1388
16451645 full school year. 1389
16461646 (b) A teacher receiving retirement benefits from the system may be 1390
16471647 reemployed for up to one full school year by a local board of education, 1391
16481648 the State Board of Education or by any constituent unit of the state 1392
16491649 system of higher education (1) in a position designated by the 1393
16501650 Commissioner of Education as a subject shortage area for the school year 1394
16511651 in which the teacher is being employed, (2) at a school located in a school 1395
16521652 district identified as a priority school district, pursuant to section 10-1396
16531653 266p, for the school year in which the teacher is being employed, (3) if 1397
16541654 the teacher graduated from a public high school in an educational 1398
16551655 reform district, as defined in section 10-262u, or (4) if the teacher 1399
16561656 graduated from an historically black college or university or a Hispanic-1400
16571657 serving institution, as those terms are defined in the Higher Education 1401
16581658 Act of 1965, P.L. 89-329, as amended from time to time, and reauthorized 1402
16591659 by the Higher Education Opportunity Act of 2008, P.L. 110-315, as 1403
16601660 amended from time to time. Notice of such reemployment shall be sent 1404
16611661 to the board by the employer and by the retired teacher at the time of 1405 Raised Bill No. 438
16621662
16631663
16641664
16651665 LCO No. 2711 45 of 56
16661666
16671667 hire and at the end of the assignment. Such reemployment may be 1406
16681668 extended for [an] one additional school year, not to exceed two school 1407
16691669 years over the lifetime of the retiree, provided the local board of 1408
16701670 education (A) submits a written request for approval to the Teachers' 1409
16711671 Retirement Board, (B) certifies that no qualified candidates are available 1410
16721672 prior to the reemployment of such teacher, and (C) indicates the type of 1411
16731673 assignment to be performed, the anticipated date of rehire and the 1412
16741674 expected duration of the assignment. 1413
16751675 (c) The employment of a teacher under subsections (a) and (b) of this 1414
16761676 section shall not be considered as service qualifying for continuing 1415
16771677 contract status under section 10-151 and the salary of such teacher shall 1416
16781678 be fixed at an amount at least equal to that paid other teachers in the 1417
16791679 same school system with similar training and experience for the same 1418
16801680 type of service. 1419
16811681 (d) No person shall be entitled to survivor's benefits under subsection 1420
16821682 (f) of section 10-183f, as amended by this act, as a result of reemployment 1421
16831683 under this section. 1422
16841684 (e) The same option plan of retirement benefits in effect prior to 1423
16851685 reemployment shall continue for a reemployed teacher during 1424
16861686 reemployment. 1425
16871687 (f) Any member in violation of any provision of this section, as 1426
16881688 determined by the board, shall be required to reimburse the board for 1427
16891689 all amounts they received in excess of the amount permitted under this 1428
16901690 section. Such reimbursement shall be accomplished through an offset of 1429
16911691 all or a portion of the excess amount which can be recaptured 1430
16921692 commencing with the next immediate retirement benefit payment 1431
16931693 issued to such member. Such member may request an alternative 1432
16941694 payment method to reimburse the board for the excess amount through 1433
16951695 an acceptable alternative method agreed to by the board. 1434
16961696 (g) In no event shall a retired member be permitted to revert to active 1435
16971697 status after the effective date of retirement, except a member may 1436
16981698 suspend their retirement benefit for reemployment purposes. 1437 Raised Bill No. 438
16991699
17001700
17011701
17021702 LCO No. 2711 46 of 56
17031703
17041704 [(f)] (h) The provisions of this section in effect on June 30, 2003, 1438
17051705 revision of 1958, revised to January 1, 2003, shall be applicable to any 1439
17061706 person making contributions to the Teachers' Retirement System on 1440
17071707 June 30, 2003, in accordance with said provisions. 1441
17081708 (i) For purposes of this section, "employed" and "reemployed" mean 1442
17091709 to hire, retain or otherwise procure the services of a retired teacher or 1443
17101710 member by an employer. 1444
17111711 Sec. 17. Section 10-183y of the general statutes is repealed and the 1445
17121712 following is substituted in lieu thereof (Effective July 1, 2020): 1446
17131713 Any member may appeal to the Teachers' Retirement Board for 1447
17141714 reconsideration of a decision of the board affecting such member. Such 1448
17151715 member shall submit with such appeal a written statement identifying 1449
17161716 the section of the general statutes that provides for the benefit to which 1450
17171717 such member claims he or she was entitled and denied and received a 1451
17181718 written denial for such request. Such appeal shall be made within ninety 1452
17191719 days of the date of issuance of written notice of such decision. The board 1453
17201720 shall meet to review such member's records and, if requested in writing, 1454
17211721 allow such member to appear at such meeting. The board shall render a 1455
17221722 written decision within sixty days of receipt of such request for 1456
17231723 reconsideration. 1457
17241724 Sec. 18. Section 10-183aa of the general statutes is repealed and the 1458
17251725 following is substituted in lieu thereof (Effective July 1, 2020): 1459
17261726 (a) (1) An active member is eligible for a disability allowance if he or 1460
17271727 she has [(1)] (A) become disabled as a result of any sickness or injury 1461
17281728 incurred in the performance of his or her duty as a teacher, without 1462
17291729 regard to the member's accumulated years of service at the time the 1463
17301730 disability is incurred; or [(2)] (B) accumulated at least five years of 1464
17311731 service in the public schools and becomes disabled, without regard to 1465
17321732 whether the disability was incurred in the performance of his or her 1466
17331733 duty as a teacher. 1467
17341734 (2) Any active member seeking a disability allowance shall submit to 1468 Raised Bill No. 438
17351735
17361736
17371737
17381738 LCO No. 2711 47 of 56
17391739
17401740 the board a formal application for disability allowance, which shall 1469
17411741 include the following: (A) The member's application; (B) the member's 1470
17421742 birth certificate or, in lieu thereof, a notarized statement supported by 1471
17431743 other evidence satisfactory to the board; (C) records of service, if such 1472
17441744 records are required by the board to determine a salary rate or years of 1473
17451745 creditable service; (D) a physician's statement of health for the member, 1474
17461746 including, but not limited to, medical reports and office notes from such 1475
17471747 physician; (E) in the case of a member who is married, a marriage 1476
17481748 certificate; (F) an employer's statement regarding work performance, 1477
17491749 attendance records and any other information regarding the member's 1478
17501750 disability; (G) the member's statement outlining the effect his or her 1479
17511751 impairment has on the ability to perform the duties of his or her 1480
17521752 occupation; and (H) any other documentation required by the board. 1481
17531753 For any formal application for disability allowance filed on or after July 1482
17541754 1, 1986, upon a finding by the board that extenuating circumstances 1483
17551755 relating to the health of an active member caused a delay in the filing of 1484
17561756 such member's complete formal application for disability allowance, the 1485
17571757 board may deem such application to have been filed up to three months 1486
17581758 earlier than the actual date of such filing. 1487
17591759 (b) The disability allowance is computed as follows: Two per cent 1488
17601760 times credited service to the date of disability multiplied by average 1489
17611761 annual salary, provided such allowance shall not be less than fifteen per 1490
17621762 cent or more than fifty per cent of the member's average annual salary. 1491
17631763 In no case shall such disability allowance, less cost of living adjustments, 1492
17641764 plus any initial award of Social Security benefits and workers' 1493
17651765 compensation, exceed seventy-five per cent of the member's average 1494
17661766 annual salary. 1495
17671767 (c) The board shall designate a medical committee to be composed of 1496
17681768 no more than five physicians. If required, other physicians may be 1497
17691769 employed to report on special cases. Such medical committee shall 1498
17701770 review each application for a disability allowance and shall make 1499
17711771 findings and recommendations in writing to the board. The medical 1500
17721772 committee shall perform additional examinations or case reviews as 1501
17731773 deemed necessary by the board. Members of such committee shall 1502 Raised Bill No. 438
17741774
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17791779 receive compensation for their services at a rate to be determined by the 1503
17801780 board. 1504
17811781 (d) The disability allowance being paid to a member shall cease when 1505
17821782 and if the disability ends. The board may determine that a member's 1506
17831783 disability has ended if it finds, upon the recommendation of its medical 1507
17841784 committee, that the member has failed to pursue an appropriate 1508
17851785 program of treatment. In either event, such member shall receive 1509
17861786 credited service for the years he received such disability allowance 1510
17871787 subject to a maximum total credit of thirty years, or actual years of 1511
17881788 credited service to the date the disability commenced, whichever is 1512
17891789 greater. Such member, if eligible, may then (1) retire on a normal, early 1513
17901790 or proratable retirement benefit or (2) retain a vested right to a deferred 1514
17911791 normal, early or proratable retirement benefit. Upon attainment of the 1515
17921792 member's normal retirement date, as determined by his age and 1516
17931793 credited service, including the credited service granted by this 1517
17941794 subsection, the member's disability allowance shall convert to a normal 1518
17951795 or other service retirement, which shall be payable either in the normal 1519
17961796 form or under an optional payment form under section 10-183j. The 1520
17971797 board may require periodic medical examinations. 1521
17981798 (e) No credit for a period of service of any kind prior to the months 1522
17991799 in which contribution therefor is made shall be given under this chapter 1523
18001800 or any special act in determining service in connection with an 1524
18011801 application for disability allowance other than for injury received in 1525
18021802 performance of duty as a teacher if such disability occurred within five 1526
18031803 years after contributions and required interest on account of such period 1527
18041804 were paid in full. The foregoing limitation shall not apply to (1) any 1528
18051805 reinstatement of prior Connecticut teaching service, or (2) credit 1529
18061806 obtained immediately after transfer from the state employees retirement 1530
18071807 system under this chapter for service previously credited in said system; 1531
18081808 but in the case of such transfer, no allowance on account of disability 1532
18091809 occurring within such five-year period, other than for injury received in 1533
18101810 performance of duty as a teacher, shall exceed the benefit which would 1534
18111811 have been payable by said system if transfer had not been made. 1535 Raised Bill No. 438
18121812
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18171817 (f) During the first twenty-four months of payment of the disability 1536
18181818 allowance to a member, twenty per cent of all of such member's outside 1537
18191819 earned income or wages shall be offset against the disability allowance 1538
18201820 payable, unless the board determines that such earned income or wages 1539
18211821 are being paid as part of the rehabilitation of the member. At the 1540
18221822 expiration of such twenty-four-month period, if the total of the disability 1541
18231823 allowance and outside earned income exceeds one hundred per cent of 1542
18241824 average annual salary, the disability allowance will be reduced by the 1543
18251825 amount of such excess over one hundred per cent. The board shall adopt 1544
18261826 regulations, in accordance with the provisions of chapter 54, concerning 1545
18271827 procedures for verification of the income of members in receipt of a 1546
18281828 disability allowance. 1547
18291829 (g) All members of the teachers' retirement system who are receiving 1548
18301830 disability payments under subsection (e) of section 10-183g of the 1549
18311831 general statutes, revision of 1958, revised to 1979, may, using a form 1550
18321832 provided by the board, elect to have their disability payments 1551
18331833 recomputed with regard to the percentage basis and pursuant to the 1552
18341834 provisions of this section and section 10-183bb. Such election shall not 1553
18351835 be revocable. 1554
18361836 Sec. 19. Section 10-183ff of the general statutes is repealed and the 1555
18371837 following is substituted in lieu thereof (Effective July 1, 2020): 1556
18381838 (a) Should any change or error in records result in any member or 1557
18391839 beneficiary receiving from the teachers' retirement system more or less 1558
18401840 than he would have been entitled to receive had the records been 1559
18411841 correct, then upon discovery of any such error the Teachers' Retirement 1560
18421842 Board shall notify the member or beneficiary affected and correct the 1561
18431843 same, and as far as practicable shall adjust the payments in such manner 1562
18441844 that the actuarial equivalent of the benefit to which such member or 1563
18451845 beneficiary was correctly entitled shall be paid, provided if such change 1564
18461846 or error results in any member or beneficiary receiving less than he 1565
18471847 would have been eligible to receive, such member or beneficiary may 1566
18481848 elect to have such benefit paid in a single payment. The board may, 1567
18491849 within the board's discretion, grant a request for a reimbursement of 1568 Raised Bill No. 438
18501850
18511851
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18541854
18551855 overdraft charges incurred by a member resulting from an erroneous 1569
18561856 suspension of benefits in error by the board, provided such member 1570
18571857 submits such request to the board not later than the last business day of 1571
18581858 the month following the month in which such error occurred. 1572
18591859 (b) If a member or beneficiary has been overpaid through no fault of 1573
18601860 his own, and he could not reasonably have been expected to detect the 1574
18611861 error, the board may waive any repayment which it believes would 1575
18621862 cause hardship. 1576
18631863 (c) Upon determination by the Teachers' Retirement Board that any 1577
18641864 person has erroneously been included in membership in the teachers' 1578
18651865 retirement system, contributions and interest credited under the 1579
18661866 provisions of this chapter shall be refunded and records of related 1580
18671867 service voided. 1581
18681868 (d) Upon determination that the Teachers' Retirement Board has 1582
18691869 invoiced a member for the purchase of additional credited service in an 1583
18701870 amount in excess of that permitted by law, and such member has paid 1584
18711871 the invoiced amount, the amount of the overpayment shall be refunded 1585
18721872 to such member with interest at a rate equal to the average of interest 1586
18731873 rates for the most recent ten-year period from the date of the member's 1587
18741874 retirement to the date such amount is refunded. 1588
18751875 [(e) Upon determination that a member has not purchased additional 1589
18761876 credited service which was invoiced to him in an amount in excess of 1590
18771877 that permitted by law, such member shall be given the opportunity at 1591
18781878 any time to make such purchase by the payment of the proper amount 1592
18791879 with interest to the date of payment. The additional benefit resulting 1593
18801880 from the credited service so purchased shall be made retroactive to the 1594
18811881 date of the member's retirement, and the aggregate amount of such 1595
18821882 additional benefit shall be paid to the member in a single payment 1596
18831883 together with interest calculated at a rate equal to the average of interest 1597
18841884 rates for the most recent ten-year period from the date each payment 1598
18851885 was due to the date such payment is made.] 1599
18861886 [(f)] (e) Upon determination by the Teachers' Retirement Board that a 1600 Raised Bill No. 438
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18911891
18921892 member received, on or after November 1, 2008, an estimate of benefits 1601
18931893 statement from the board that contained a material error, the board shall 1602
18941894 pay the member the benefits set forth in such estimate if the board 1603
18951895 determines that (1) the member could not reasonably have been 1604
18961896 expected to detect such error, and (2) the member, in reliance upon such 1605
18971897 estimate, irrevocably submitted (A) his or her resignation to the 1606
18981898 employing board of education, and (B) a formal application of 1607
18991899 retirement to the Teachers' Retirement Board. For purposes of this 1608
19001900 subsection, "material error" means an error that amounts to a difference 1609
19011901 of ten per cent or greater between the estimated retirement benefits and 1610
19021902 the actual retirement benefits to which such member would otherwise 1611
19031903 be entitled. 1612
19041904 Sec. 20. Section 10-183gg of the general statutes is repealed and the 1613
19051905 following is substituted in lieu thereof (Effective July 1, 2020): 1614
19061906 Part-time service averaging at least one-half of a school day but less 1615
19071907 than a full school day shall be treated as full-time service for purposes 1616
19081908 of determining eligibility for benefits under this chapter. For purposes 1617
19091909 of determining benefits under subsections (a) to (d), inclusive, of section 1618
19101910 10-183g, as amended by this act, the percentages utilized in said sections 1619
19111911 shall be proportionally reduced for each year or portion of a year of 1620
19121912 service rendered or purchased after July 1, 1977, which is part-time 1621
19131913 service. Notwithstanding the provisions of [subdivision (4) of] section 1622
19141914 10-183b, as amended by this act, the average annual salary of a member 1623
19151915 with part-time service shall be such member's full-time annualized 1624
19161916 salary during his three highest years. Any benefit awarded pursuant to 1625
19171917 this section shall be proportional in all respects to the benefit which 1626
19181918 would have been payable had such service been rendered on a full-time 1627
19191919 basis. 1628
19201920 Sec. 21. Subsection (a) of section 10-183jj of the general statutes is 1629
19211921 repealed and the following is substituted in lieu thereof (Effective July 1, 1630
19221922 2020): 1631
19231923 (a) A local or regional board of education may establish a retirement 1632 Raised Bill No. 438
19241924
19251925
19261926
19271927 LCO No. 2711 52 of 56
19281928
19291929 incentive plan for teachers, as defined in [subparagraph (A) of 1633
19301930 subdivision (26) of] section 10-183b, as amended by this act, in its 1634
19311931 employ who are members of the teachers' retirement system. The plan 1635
19321932 shall provide for purchase of additional credited service by a board of 1636
19331933 education and a member of the system who chooses to participate in the 1637
19341934 plan, of additional credited service for such member and for payment 1638
19351935 by the board of education of not less than fifty per cent of the entire cost 1639
19361936 of such additional credited service and payment by the member of the 1640
19371937 remaining percentage of such total cost. The member shall pay the 1641
19381938 remaining percentage of such total cost, if any, in one lump sum not later 1642
19391939 than thirty days after receipt of notification by the Teachers' Retirement 1643
19401940 Board of the amount owed. Any such plan shall specify a maximum 1644
19411941 number of years, not exceeding five years, of additional credited service 1645
19421942 which may be purchased under the plan. Any such plan shall have a 1646
19431943 two-month application period. 1647
19441944 Sec. 22. Section 10-183pp of the general statutes is repealed and the 1648
19451945 following is substituted in lieu thereof (Effective July 1, 2020): 1649
19461946 Any member who began receiving disability benefits October 1, 1977, 1650
19471947 under the provisions of subsection (d) of section 10-166 and who elected 1651
19481948 to receive benefits in accordance with the former provisions of 1652
19491949 subsection (c) of section 10-164-7 of the Regulations of Connecticut State 1653
19501950 Agencies in effect June 30, 1978, may elect to receive such benefits 1654
19511951 readjusted under the provisions of subsection [(b) or] (c) or (d) of section 1655
19521952 10-183j, as amended by this act, provided such member provides written 1656
19531953 notice of such election to the Teachers' Retirement Board not later than 1657
19541954 ninety days following January 1, 2001. 1658
19551955 Sec. 23. Section 10-183rr of the general statutes is repealed and the 1659
19561956 following is substituted in lieu thereof (Effective July 1, 2020): 1660
19571957 Notwithstanding the provisions of subdivision [(26)] (29) of section 1661
19581958 10-183b, as amended by this act, concerning the requirement that a 1662
19591959 teacher hold a certificate for the position in which the person is 1663
19601960 employed, any teacher who possesses a certificate or permit issued by 1664 Raised Bill No. 438
19611961
19621962
19631963
19641964 LCO No. 2711 53 of 56
19651965
19661966 the State Board of Education and is notified on or after December 1, 2003, 1665
19671967 by the Department of Education that such teacher is not properly 1666
19681968 certified for the position in which the teacher is employed or has been 1667
19691969 employed, such teacher shall receive no further credit in the teachers' 1668
19701970 retirement system for employment in such position until the teacher 1669
19711971 becomes properly certified for such position. The Teachers' Retirement 1670
19721972 Board shall not rescind any credited service to such teacher for such 1671
19731973 employment and shall restore any such credit to such teacher if 1672
19741974 rescinded prior to May 27, 2008. 1673
19751975 Sec. 24. Subsection (a) of section 10-183ww of the 2020 supplement to 1674
19761976 the general statutes is repealed and the following is substituted in lieu 1675
19771977 thereof (Effective July 1, 2020): 1676
19781978 (a) Not later than fourteen business days after the last action 1677
19791979 necessary to make effective a state budget act for the biennium ending 1678
19801980 June 30, 2021, subject to the approval of the Teachers' Retirement Board, 1679
19811981 the credited interest percentage for member accounts, except voluntary 1680
19821982 accounts containing only those contributions made pursuant to section 1681
19831983 10-183i, as amended by this act, shall be not more than four per cent per 1682
19841984 annum and the return assumption shall be six and nine-tenths per cent 1683
19851985 per annum. Notwithstanding the provisions of sections 10-183vv, 12-1684
19861986 801, 12-806 and 12-812, if the board fails to revise such percentage and 1685
19871987 adopt such return assumption: (1) No moneys shall be deposited in the 1686
19881988 Connecticut Teachers' Retirement Fund Bonds Special Capital Reserve 1687
19891989 Fund, established in section 10-183vv; (2) the Treasurer's duties and 1688
19901990 obligations under section 10-183vv shall terminate; and (3) the pledges 1689
19911991 made in section 10-183vv shall not be in effect. 1690
19921992 Sec. 25. Subsection (d) of section 10-66dd of the general statutes is 1691
19931993 repealed and the following is substituted in lieu thereof (Effective July 1, 1692
19941994 2020): 1693
19951995 (d) (1) An otherwise qualified school professional hired by a charter 1694
19961996 school prior to July 1, 2010, and employed in a charter school may 1695
19971997 participate in the state teachers' retirement system under chapter 167a 1696 Raised Bill No. 438
19981998
19991999
20002000
20012001 LCO No. 2711 54 of 56
20022002
20032003 on the same basis as if such professional were employed by a local or 1697
20042004 regional board of education. The governing council of a charter school 1698
20052005 shall make the contributions, as defined in [subdivision (7) of] section 1699
20062006 10-183b, as amended by this act, for such professional. 1700
20072007 (2) An otherwise qualified school professional hired by a charter 1701
20082008 school on or after July 1, 2010, and who has not previously been 1702
20092009 employed by a charter school in this state prior to July 1, 2010, shall 1703
20102010 participate in the state teachers' retirement system under chapter 167a 1704
20112011 on the same basis as if such professional were employed by a local or 1705
20122012 regional board of education. The governing council of a charter school 1706
20132013 shall make the contributions, as defined in [subdivision (7) of] section 1707
20142014 10-183b, as amended by this act, for such professional. 1708
20152015 (3) Any administrator or person providing instruction or pupil 1709
20162016 services in a charter school who holds a charter school educator permit 1710
20172017 issued by the State Board of Education pursuant to section 10-145q shall 1711
20182018 participate in the state teachers' retirement system under chapter 167a 1712
20192019 pursuant to subdivision (2) of this section when such administrator or 1713
20202020 person providing instruction or pupil services obtains professional 1714
20212021 certification pursuant to section 10-145b. 1715
20222022 Sec. 26. Subsection (a) of section 10a-55i of the general statutes is 1716
20232023 repealed and the following is substituted in lieu thereof (Effective July 1, 1717
20242024 2020): 1718
20252025 (a) There is established a Higher Education Consolidation Committee 1719
20262026 which shall be convened by the chairpersons of the joint standing 1720
20272027 committee of the General Assembly having cognizance of matters 1721
20282028 relating to higher education or such chairpersons' designee, who shall 1722
20292029 be a member of such joint standing committee. The membership of the 1723
20302030 Higher Education Consolidation Committee shall consist of the higher 1724
20312031 education subcommittee on appropriations and the chairpersons, vice 1725
20322032 chairpersons and ranking members of the joint standing committees of 1726
20332033 the General Assembly having cognizance of matters relating to higher 1727
20342034 education and appropriations. The Higher Education Consolidation 1728 Raised Bill No. 438
20352035
20362036
20372037
20382038 LCO No. 2711 55 of 56
20392039
20402040 Committee shall establish a meeting and public hearing schedule for 1729
20412041 purposes of receiving updates from (1) the Board of Regents for Higher 1730
20422042 Education on the progress of the consolidation of the state system of 1731
20432043 higher education pursuant to this section, section 4-9c, subsection (g) of 1732
20442044 section 5-160, section 5-199d, subsection (a) of section 7-323k, subsection 1733
20452045 (a) of section 7-608, subsection (a) of section 10-9, section 10-155d, 1734
20462046 subdivision [(14)] (16) of section 10-183b, as amended by this act, 1735
20472047 sections 10a-1a to 10a-1d, inclusive, 10a-3 and 10a-3a, subsection (a) of 1736
20482048 section 10a-6a, sections 10a-6b, 10a-8, 10a-10a to 10a-11a, inclusive, 10a-1737
20492049 17d and 10a-22a, subsections (f) and (h) of section 10a-22b, subsections 1738
20502050 (c) and (d) of section 10a-22d, sections 10a-22h and 10a-22k, subsection 1739
20512051 (a) of section 10a-22n, sections 10a-22r, 10a-22s, 10a-22u, 10a-22v, 10a-1740
20522052 22x and 10a-34 to 10a-35a, inclusive, subsection (a) of section 10a-48a, 1741
20532053 sections 10a-71 and 10a-72, subsections (c) and (f) of section 10a-77, 1742
20542054 section 10a-88, subsection (a) of section 10a-89, subsection (c) of section 1743
20552055 10a-99 and sections 10a-102, 10a-104, 10a-105, 10a-109e, 10a-143 and 10a-1744
20562056 168a, and (2) the Board of Regents for Higher Education and The 1745
20572057 University of Connecticut on the program approval process for the 1746
20582058 constituent units. The Higher Education Consolidation Committee shall 1747
20592059 convene its first meeting on or before September 15, 2011, and meet not 1748
20602060 less than once every two months. 1749
20612061 This act shall take effect as follows and shall amend the following
20622062 sections:
20632063
20642064 Section 1 July 1, 2020 10-183b
20652065 Sec. 2 July 1, 2020 10-183c
20662066 Sec. 3 July 1, 2020 10-183e
20672067 Sec. 4 July 1, 2020 10-183f
20682068 Sec. 5 July 1, 2020 10-183g
20692069 Sec. 6 July 1, 2020 10-183h
20702070 Sec. 7 July 1, 2020 10-183i(a)
20712071 Sec. 8 July 1, 2020 10-183j
20722072 Sec. 9 July 1, 2020 10-183k
20732073 Sec. 10 July 1, 2020 10-183l
20742074 Sec. 11 July 1, 2020 10-183n
20752075 Sec. 12 July 1, 2020 10-183o
20762076 Sec. 13 July 1, 2020 10-183p Raised Bill No. 438
20772077
20782078
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20802080 LCO No. 2711 56 of 56
20812081
20822082 Sec. 14 July 1, 2020 10-183q
20832083 Sec. 15 July 1, 2020 10-183t
20842084 Sec. 16 July 1, 2020 10-183v
20852085 Sec. 17 July 1, 2020 10-183y
20862086 Sec. 18 July 1, 10-183aa
20872087 Sec. 19 July 1, 2020 10-183ff
20882088 Sec. 20 July 1, 2020 10-183gg
20892089 Sec. 21 July 1, 2020 10-183jj(a)
20902090 Sec. 22 July 1, 2020 10-183pp
20912091 Sec. 23 July 1, 2020 10-183rr
20922092 Sec. 24 July 1, 2020 10-183ww(a)
20932093 Sec. 25 July 1, 2020 10-66dd(d)
20942094 Sec. 26 July 1, 2020 10a-55i(a)
20952095
20962096 Statement of Purpose:
20972097 To revise and update the teachers' retirement system statutes to align
20982098 with current practices.
20992099 [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
21002100 that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
21012101 underlined.]
21022102