Connecticut Senate Bill SB00440

Connecticut 2020 Regular Session

• Introduced: 3/6/20
• Refer: 3/6/20

Caption

An Act Concerning The Interest Rate Relating To Teachers' Retirement System Cost-of-living Allowances And Reserving Certain Lottery Fund Revenue For The Connecticut Teachers' Retirement Fund Bonds Special Capital Reserve Fund.

Impact

The changes proposed in SB00440 could have significant implications for state budget management and education funding. By adjusting the method for calculating cost-of-living allowances, the bill is designed to ensure that retirees receive equitable adjustments while balancing the financial responsibilities of the Teachers' Retirement Fund. Moreover, the bill reserves certain lottery revenues for the Connecticut Teachers' Retirement Fund Bonds Special Capital Reserve Fund, which may enhance the financial stability of the retirement system.

Summary

SB00440 aims to revise the interest rate for cost-of-living adjustments related to the Teachers' Retirement System in Connecticut. The bill specifies that commencing from January or July after nine months in retirement, eligible members, except those receiving survivor benefits, will receive an annual cost-of-living allowance based on the adjustments determined by the Social Security Administration. The bill introduces a new cap for such allowances and adjusts the conditions under which they may be granted, potentially allowing for a more structured and predictable increase in benefits for retirees.

Contention

Key points of contention surrounding SB00440 include concerns about how the changes to the cost-of-living adjustments will affect current and future retirees' financial security. Opponents of the bill may argue that the new caps on allowances could limit potential growth in retirement income, which may not keep pace with inflation or increased living costs. Additionally, there may be debates regarding the appropriateness of using lottery revenue for education funding and retirement benefits, highlighting fundamental disagreements over the prioritization of state resources.