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General Assembly Raised Bill No. 1080
January Session, 2021
LCO No. 5547
Referred to Committee on APPROPRIATIONS
Introduced by:
(APP)
AN ACT CONCERNING VA RIOUS REVISIONS TO THE TEACHERS'
RETIREMENT SYSTEM.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 10-183b of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective July 1, 2021): 2
As used in this chapter, unless the context otherwise requires: 3
(1) "Actuarial reserve basis" means a basis under which the liabilities 4
of the retirement system are determined under acceptable actuarial 5
methods and under which assets are accumulated under a program 6
designed to achieve a proper balance between the accumulated assets 7
and the liabilities of the system. 8
(2) "Amortization of unfunded liabilities" means: (A) For fiscal years 9
ending on or before June 30, 2019, a systematic program of annual 10
payments determined as a level per cent of expected member annual 11
salaries in lieu of a lump sum payment; and (B) for fiscal years ending 12
on or after June 30, 2020, a systematic program of annual payments, 13 Raised Bill No. 1080
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transitioning equally over five consecutive fiscal years from a level per 14
cent of expected annual member salaries to a level payment, in lieu of a 15
lump sum payment. 16
(3) "Annual salary" means the annual salary rate for service as a 17
Connecticut teacher during a school year but not including unused sick 18
leave, unused vacation, terminal pay, coaching or extra duty 19
assignments, unless compensation for coaching or extra duty 20
assignment was included in salary for which contributions were made 21
prior to July 1, 1971. In no event shall annual salary include amounts 22
determined by the board to be included for the purpose of inflating the 23
member's average annual salary. The inclusion in annual salary of 24
amounts paid to the member, in lieu of payment by the employer for the 25
cost of benefits, insurance, or individual retirement arrangements which 26
in prior years had been paid by the employer and not included in the 27
member's annual salary, shall be prima facie evidence that such 28
amounts are included for the purpose of inflating the member's average 29
annual salary. Annual salary shall not (A) include payments the timing 30
of which may be directed by the member, (B) include payments to a 31
superintendent pursuant to an individual contract between such 32
superintendent and a board of education, of amounts which are not 33
included in base salary, or (C) exceed the maximum amount allowed 34
under Section 401(a)(17) of the Internal Revenue Code for the applicable 35
limitation year, provided in no event shall the limitation under Section 36
401(a)(17) of the Internal Revenue Code apply to the annual salary of a 37
member whose membership began prior to January 1, 1996, if such 38
limitation would reduce the amount of the member's annual salary 39
below the amount permitted for calculation of the member's retirement 40
benefit under chapter 167a, without regard to the limitation under 41
Section 401(a)(17) of the Internal Revenue Code. Annual salary shall 42
include amounts paid to the member during a sabbatical leave during 43
which mandatory contributions were remitted, provided such member 44
returned to full-time teaching for at least five full years following the 45
completion of such leave. 46
(4) "Average annual salary" means the average annual salary received 47 Raised Bill No. 1080
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during the three years of highest salary. 48
(5) "Board" means the Teachers' Retirement Board. 49
(6) "Child" means a natural child, an adopted child, or a stepchild of 50
a deceased member who has been a stepchild for at least one year 51
immediately prior to the date on which the member died. A child is a 52
"dependent child" of a deceased member if at the time of the member's 53
death (A) the member was living with the child or providing or 54
obligated to provide, by agreement or court order, a reasonable portion 55
of the support of the child, and (B) the child (i) is unmarried and has not 56
attained age eighteen, or (ii) is disabled and such disability began prior 57
to the child's attaining age eighteen. 58
(7) "Contributions" means amounts withheld pursuant to this chapter 59
and paid to the board by an employer from compensation payable to a 60
member. Prior to July 1, 1989, "mandatory contributions" are 61
contributions required to be withheld under this chapter and consist of 62
five per cent regular contributions and "one per cent contributions". 63
From July 1, 1989, to June 30, 1992, "mandatory contributions" are 64
contributions required to be withheld under this chapter and consist of 65
five per cent regular contributions and one per cent health 66
contributions. From July 1, 1992, to June 30, 2004, "mandatory 67
contributions" are contributions required to be withheld under this 68
chapter and consist of six per cent "regular contributions" and one per 69
cent health contributions. From July 1, 2004, to December 31, 2017, 70
"mandatory contributions" are contributions required to be withheld 71
under this chapter and consist of six per cent regular contributions and 72
one and one-fourth per cent health contributions. From January 1, 2018, 73
to December 31, 2019, inclusive, "mandatory contributions" are 74
contributions required to be withheld under this chapter and consist of 75
seven per cent "regular contributions" and one and one-fourth per cent 76
health contributions. On and after January 1, 2020, "mandatory 77
contributions" are contributions required to be withheld under this 78
chapter and consist of seven per cent "regular contributions" and one 79
and one-fourth per cent health contributions, except that no health 80 Raised Bill No. 1080
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contributions shall be required for an employee of the state that (A) has 81
completed the vesting service necessary to receive health benefits 82
provided to retired state employees, and (B) does not participate in any 83
group health insurance plans maintained for retired teachers. Nothing 84
in this subdivision shall affect any other obligation of such a state 85
employee to contribute to the state's retiree health care trust fund. 86
"Voluntary contributions" are contributions by a member authorized to 87
be withheld under section 10-183i, as amended by this act. 88
(8) "Credited interest" means interest at the rate from time to time 89
fixed by the board consistent with industry standards and practices. 90
Such interest shall be applied to a member's account based on the 91
balance as of the previous June thirtieth. Credited interest shall be 92
assessed on any mandatory contributions which were due but not 93
remitted prior to the close of the school year for which salary was paid. 94
(9) "Current service" means service rendered in the current fiscal year. 95
(10) "Dependent former spouse" means a former spouse of a deceased 96
member who (A) has in his or her care a dependent child of the deceased 97
member; and (B) was receiving, or was entitled to receive, from the 98
deceased member at the time of the death of the deceased member, at 99
least one-half of his or her support; and (C) has not remarried; and (D) 100
is the parent of the child or adopted the child while married to the 101
member and before the child attained age eighteen or, while married to 102
the member, both of them adopted the child before the child attained 103
age eighteen. 104
(11) "Dependent parent" means a parent of a deceased member who 105
(A) has reached the age of sixty-five; and (B) has not married after the 106
death of the member; and (C) was receiving at least one-half of his or 107
her support from the member at the time of the member's death and files 108
proof of such support within two years of the date of the member's 109
death; and (D) is not receiving, or entitled to a federal or state old age 110
benefit based on the parent's own earnings, equal to or greater than the 111
amount the parent would be entitled to as a dependent parent under 112 Raised Bill No. 1080
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this chapter. A "parent of a deceased member" is (i) the mother or father 113
of a deceased member; or (ii) a stepparent of a deceased member by a 114
marriage entered into before the member attained age sixteen; or (iii) an 115
adopting parent of a deceased member who adopted the deceased 116
member before the member attained age sixteen. 117
(12) "Designated beneficiary" means a person designated on a form 118
prescribed by the board by a member to receive amounts which become 119
payable under this chapter as the result of the member's death whether 120
before or after retirement. If a designated beneficiary is not living at the 121
time of the death of a member, the amounts that would have been 122
payable to the designated beneficiary shall be paid to the member's 123
estate. 124
(13) "Disabled" means the inability to perform any teaching service, 125
whether or not such service is performed full-time or part-time, in a 126
public or nonpublic school or a nonschool setting, on a volunteer basis 127
or for compensation, within or without the state, or engage in any 128
substantial gainful activity by reason of any medically determinable 129
physical or mental impairment [which] that (A) is permanent or can be 130
expected to last continually for not less than twelve months from the 131
onset of such impairment, or (B) can be expected to result in death or to 132
be of long-continued and indefinite duration, except that during the first 133
twenty-four months that a member is receiving a disability allowance, 134
"disabled" means the inability to perform the usual duties of his 135
occupation by reason of any such impairment. 136
(14) "Employer" means an elected school committee, a board of 137
education, the State Board of Education, the Office of Early Childhood, 138
the Board of Regents for Higher Education or any of the constituent 139
units, the governing body of the Children's Center and its successors, 140
the E. O. Smith School and any other activity, institution or school 141
employing members. 142
(15) "Formal leave of absence" means any absence from active service 143
in the public schools of Connecticut formally granted by a member's 144 Raised Bill No. 1080
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employer as evidenced by contemporary records of the employer, 145
provided in the case of an absence due to illness, medical or other 146
evidence of such illness may, at the discretion of the Teachers' 147
Retirement Board, be accepted in lieu of evidence of the formal granting 148
of a leave. 149
(16) "Formal application of retirement" means (A) the member's 150
application, birth certificate or notarized statement supported by other 151
evidence satisfactory to the board, in lieu thereof, (B) records of service, 152
[when] if such records are required by the board to determine a salary 153
rate or years of creditable service, (C) a statement of payment plan, 154
[and,] including, if applicable, the fixed period of time selected by a 155
member under Plan C or the coparticipant's share designated under 156
Plan D, (D) in the case of an application for a disability benefit, a 157
physician's or an advanced practice registered nurse's statement of 158
health, and (E) any other documentation required by the board. 159
(17) "Funding" means the accumulation of assets in advance of the 160
payment of retirement allowances in accordance with a definite 161
actuarial program. 162
(18) "Member" means any Connecticut teacher employed for an 163
average of at least one-half of each school day, except that no teacher 164
who under any provision of the general statutes elects not to participate 165
in the system shall be a member unless and until the teacher elects to 166
participate in the system. Members teaching in a nonpublic school 167
classified as a public school by the board under the provisions of this 168
section may continue as members as long as they continue as teachers 169
in such school even if the school ceases to be so classified. A former 170
teacher who has not withdrawn his or her accumulated contributions 171
shall be an "inactive member". A member who, during the period of a 172
formal leave of absence granted by his or her employer, but not 173
exceeding an aggregate of ten school months, continues to make 174
mandatory contributions to the board, retains his or her status as an 175
active member. 176 Raised Bill No. 1080
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(19) "Normal cost" means the amount of contribution which the state 177
is required to make into the retirement fund in order to meet the 178
actuarial cost of current service. 179
(20) "Public school" means any day school conducted within or 180
without this state under the orders and superintendence of a duly 181
elected school committee, a board of education, the State Board of 182
Education, the Office of Early Childhood, the board of governors or any 183
of its constituent units, the E. O. Smith School, the Children's Center and 184
its successors, the State Education Resource Center established pursuant 185
to section 10-4q of the 2014 supplement to the general statutes, revision 186
of 1958, revised to January 1, 2013, the State Education Resource Center 187
established pursuant to section 10-357a, joint activities of boards of 188
education authorized by subsection (b) of section 10-158a and any 189
institution supported by the state at which teachers are employed or any 190
incorporated secondary school not under the orders and 191
superintendence of a duly elected school committee or board of 192
education but located in a town not maintaining a high school and 193
providing free tuition to pupils of the town in which it is located, and 194
which has been approved by the State Board of Education under the 195
provisions of part II of chapter 164, provided that such institution or 196
such secondary school is classified as a public school by the retirement 197
board. 198
(21) "Retirement allowance" means payments for life derived from 199
member contributions, including credited interest, and contributions 200
from the state. 201
(22) "School year" means the twelve months ending on June thirtieth 202
of each year. 203
(23) "Surviving spouse" means a widow or widower of a deceased 204
member who (A) was living with the member at the time of the 205
member's death, or receiving, or entitled by court order or agreement to 206
receive, regular support payments from the member, and (B) has not 207
remarried. 208 Raised Bill No. 1080
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(24) "Survivors" means a surviving spouse, a dependent former 209
spouse, a dependent child and a dependent parent. 210
(25) "System" means the Connecticut teachers' retirement system. 211
(26) "Teacher" means (A) any teacher, permanent substitute teacher, 212
principal, assistant principal, supervisor, assistant superintendent or 213
superintendent employed by the public schools in a professional 214
capacity while possessing a certificate or permit issued by the State 215
Board of Education, provided on and after July 1, 1975, such certificate 216
shall be for the position in which the person is then employed, except as 217
provided for in section 10-183qq, (B) certified personnel who provide 218
health and welfare services for children in nonprofit schools, as 219
provided in section 10-217a, under an oral or written agreement, (C) any 220
person who is engaged in teaching or supervising schools for adults if 221
the annual salary paid for such service is equal to or greater than the 222
minimum salary paid for a regular, full-time teaching position in the 223
day schools in the town where such service is rendered, (D) a member 224
of the professional staff of the State Board of Education, the Office of 225
Early Childhood, or of the Board of Regents for Higher Education or any 226
of the constituent units, and (E) a member of the staff of the State 227
Education Resource Center established pursuant to section 10-4q of the 228
2014 supplement to the general statutes, revision of 1958, revised to 229
January 1, 2013, or the State Education Resource Center established 230
pursuant to section 10-357a, employed in a professional capacity while 231
possessing a certificate or permit issued by the State Board of Education. 232
A "permanent substitute teacher" is one who serves as such for at least 233
ten months during any school year. 234
(27) "Unfunded liability" means the actuarially determined value of 235
the liability for service before the date of the actuarial valuation less the 236
accumulated assets in the retirement fund. 237
(28) "Internal Revenue Code" means the Internal Revenue Code of 238
1986, or any subsequent corresponding internal revenue code of the 239
United States, as from time to time amended, and any regulations 240 Raised Bill No. 1080
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promulgated under or interpretations of said code that may affect this 241
chapter. 242
(29) "Limitation year" means the twelve-month period beginning 243
each July first and ending each June thirtieth. 244
Sec. 2. Section 10-183f of the general statutes is repealed and the 245
following is substituted in lieu thereof (Effective July 1, 2021): 246
(a) A member is eligible to receive a normal retirement benefit [who] 247
if such member (1) has attained age sixty and has accumulated twenty 248
years of credited service in the public schools of Connecticut, or (2) has 249
attained any age and has accumulated thirty-five years of credited 250
service, at least twenty-five years of which are service in the public 251
schools of Connecticut. 252
(b) A member is eligible to receive a proratable retirement benefit 253
[who] if such member has attained age sixty prior to termination of 254
service and has accumulated at least ten years of credited service in the 255
public schools of Connecticut. 256
(c) A member is eligible to receive an early retirement benefit [who] 257
if such member has accumulated twenty-five years of credited service 258
at least twenty years of which are service in the public schools of 259
Connecticut, or [who] if such member has attained the age of fifty-five 260
and has accumulated at least twenty years of credited service, at least 261
fifteen of which are service in the public schools of Connecticut. 262
(d) A member is eligible to receive a deferred vested retirement 263
benefit beginning at age sixty [who] if such member: (1) Has 264
accumulated ten years of credited service in the public schools of 265
Connecticut; and (2) terminates service before becoming eligible for any 266
other retirement benefit; and (3) leaves his or her accumulated 267
contributions with the system. 268
(e) Repealed by P.A. 79-541, S. 5, 6. 269
(f) The survivors of a member who dies (1) while in service in the 270 Raised Bill No. 1080
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public schools of Connecticut, (2) within two months after withdrawal 271
from such service and prior to the effective date of such member's 272
retirement or (3) while receiving a disability benefit under section 10-273
183aa, as amended by this act, shall receive survivors' benefits. [, except 274
that, if a member who has elected a coparticipant option, under section 275
10-183j, dies after such option becomes effective, such coparticipant 276
option shall be given effect and no survivors' benefits shall be payable.] 277
Before any survivors' benefits are paid, the board shall receive such 278
applications and other documents and information as it deems 279
necessary. 280
(g) Notwithstanding any provision of this chapter, pursuant to 281
Section 401(a)(9) of the Internal Revenue Code, a member shall begin 282
receiving benefits under this chapter no later than April first of the 283
calendar year following the calendar year in which (1) the member 284
attains age seventy and one-half, or seventy-two for members who 285
attain such age on or after January 1, 2020, or (2) if the member retires 286
after age seventy and one-half, [the] or seventy-two for members who 287
attain such age on or after January 1, 2020, in the calendar year in which 288
such member retires. 289
Sec. 3. Subsection (a) of section 10-183i of the general statutes is 290
repealed and the following is substituted in lieu thereof (Effective July 1, 291
2021): 292
(a) A member may make voluntary contributions to the system and 293
may, no more than once, withdraw such voluntary contributions from 294
the system under rules of the board. Any voluntary contribution shall 295
be made solely by payroll deduction of an amount subject to state, 296
federal or local tax in the tax or income year in which such voluntary 297
contribution is made. Voluntary contributions shall be subject to the 298
limitations imposed under Section 415(c) of the Internal Revenue Code 299
for the applicable limitation year. Such contributions shall earn credited 300
interest. Upon retirement such member shall elect to receive the 301
accumulated contributions plus credited interest either in a lump sum 302
or in the form of an actuarially equivalent annuity for life. Such lump 303 Raised Bill No. 1080
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sum, [or] if elected, shall be paid not later than three months after the 304
effective date of retirement, except the board may delay payment of 305
such lump sum in the case of extenuating circumstances. If such delay 306
occurs, the board shall submit a written notice to the member explaining 307
the nature of the extenuating circumstances and an estimate as to when 308
such lump sum shall be paid. Payment of such annuity, if elected, shall 309
[be paid or commenced to be paid] commence when the first payment 310
of such member's other retirement benefit is made. If such member dies 311
before the effective date of his or her retirement, the accumulated 312
contributions plus credited interest shall be paid to such member's 313
designated beneficiary. 314
Sec. 4. Section 10-183l of the general statutes is repealed and the 315
following is substituted in lieu thereof (Effective July 1, 2021): 316
(a) (1) On and after July 1, 1991, the management of the system shall 317
continue to be vested in the Teachers' Retirement Board, whose 318
members shall include the Treasurer, the Secretary of the Office of Policy 319
and Management and the Commissioner of Education, or their 320
designees, who shall be voting members of the board, ex officio. (2) On 321
or before June 15, 1985, and quadrennially thereafter, the members of 322
the system shall elect from their number, in a manner prescribed by said 323
board, two persons to serve as members of said board for terms of four 324
years beginning July first following such election. Both of such persons 325
shall be active teachers who shall be nominated by the members of the 326
system who are not retired and elected by all the members of the system. 327
On or before July 1, 1991, and quadrennially thereafter, the members of 328
the system shall elect from their number, in a manner prescribed by said 329
board, three persons to serve as members of said board for terms of four 330
years beginning July first following such election. Two of such persons 331
shall be retired teachers who shall be nominated by the retired members 332
of the system and elected by all the members of the system and one shall 333
be an active teacher who shall be nominated by the members of the 334
system who are not retired and elected by all the members of the system. 335
(3) On or before July 1, 2011, and quadrennially thereafter, the members 336
of the system shall elect from their number, in a manner prescribed by 337 Raised Bill No. 1080
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said board, one person to serve as a member of said board for a term of 338
four years beginning July first following such election. Such person shall 339
be an active teacher who shall be nominated by the members of the 340
system who are not retired, elected by all the members of the system 341
and a member of an exclusive representative of a teachers' bargaining 342
unit that is not represented by the members of the board elected under 343
subdivision (2) of this subsection. (4) If a vacancy occurs in the positions 344
filled by the members of the system who are not retired, said board shall 345
elect a member of the system who is not retired to fill the unexpired 346
portion of the term. If a vacancy occurs in the positions filled by the 347
retired members of the system, said board shall elect a retired member 348
of the system to fill the unexpired portion of the term. The Governor 349
shall appoint five public members to said board in accordance with the 350
provisions of section 4-9a, one of whom shall be the mayor, first 351
selectman or chief elected official of a municipality. On and after the 352
effective date of this section, the Governor shall fill the next vacant 353
position on the board that is appointed by the Governor with a person 354
who is the mayor, first selectman or chief elected official of a 355
municipality. The members of the board shall serve without 356
compensation, but shall be reimbursed for any expenditures or loss of 357
salary or wages which they incur through service on the board. [All 358
decisions of the board shall require the approval of six members of the 359
board or a majority of the members who are present, whichever is 360
greater] A majority of the membership of the board shall constitute a 361
quorum for the transaction of any business. 362
(b) In carrying out its duties, the board may employ [a secretary] a 363
chief administrator with a title established by the board, who shall also 364
serve as secretary of the board, an administrative officer and such 365
[clerical and other assistance] staff as may be necessary. Their salaries 366
shall be paid by said board with the approval of the Secretary of the 367
Office of Policy and Management. Said board shall employ the services 368
of one or more actuaries, each of which shall be an individual or firm 369
having on its staff a fellow of the Society of Actuaries, to carry out the 370
actuarial duties of this section and sections 10-183b, as amended by this 371 Raised Bill No. 1080
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act, 10-183r, and 10-183z and for such related purposes as the board 372
deems advisable. The cost of such services shall be charged to the funds 373
provided for in section 10-183r. Said board shall arrange for such 374
actuary to prepare an actuarial valuation of the assets and liabilities of 375
the system as of June 30, 1980, and at least once every two years 376
thereafter. On the basis of reasonable actuarial assumptions approved 377
by the board, such actuary shall determine the [normal cost] actuarially 378
determined employer contribution required to meet the actuarial cost of 379
current service and the unfunded accrued liability. Commencing 380
December 1, 2002, such valuation shall be completed prior to December 381
first biennially. Said board shall adopt all needed actuarial tables and 382
may adopt regulations and rules not inconsistent with this chapter, 383
including regulations and rules for payment of purchased service 384
credits and repayment of previously withdrawn accumulated 385
contributions. Said board shall establish [such funds as are] an 386
operational budget necessary for the management of the system. The 387
board may enter into such contractual agreements, in accordance with 388
established procedures, as may be necessary for the discharge of its 389
duties. 390
Sec. 5. Section 10-183p of the general statutes is repealed and the 391
following is substituted in lieu thereof (Effective July 1, 2021): 392
[(a) Any member of either the state employees retirement system or 393
the teachers' retirement system, if eligible to belong to the other or in 394
accordance with the provisions of subsection (h) of section 5-160 or 395
section 5-192e, may transfer from the one to which such member 396
belongs to the other or prior to the first of the month following three 397
months after June 28, 1985, to an alternate retirement program, as 398
defined in subsection (u) of section 5-154, when authorized to do so, in 399
the case of a transfer between said systems or a transfer from the 400
teachers' retirement system to an alternate retirement program, by the 401
concurrent action of the State Employees Retirement Commission and 402
the Teachers' Retirement Board. No person shall be eligible to 403
membership in more than one such system or program at the same time, 404
provided nothing contained herein shall affect the rights of any person 405 Raised Bill No. 1080
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who, on June 18, 1953, was a member of both systems. Any member of 406
the teachers' retirement system who elects or has elected to participate 407
in an alternate retirement program shall receive a refund of all 408
contributions made by him into said system in lieu of any benefits under 409
said system. Any former state employee who was, during such 410
employee's period of employment, eligible to belong to either the state 411
employees retirement system or the teachers' retirement system and 412
who withdrew from the state employees retirement system after July 1, 413
1940, to become a member of the teachers' retirement system may be 414
credited in the teachers' retirement system with such member's period 415
of state service upon making application in writing to the secretary of 416
the Teachers' Retirement Board and paying contributions for such 417
period of service with credited interest from the date such service was 418
rendered. 419
(b) No person who has creditable service as a member of the state 420
employees retirement system and who transfers, on or after May 6, 1975, 421
to the teachers' retirement system shall be entitled to benefits from the 422
teachers' retirement system until such person has been a member of and 423
contributed to said system for a period of one year. If such transferee 424
dies or becomes disabled before completion of that one year, such 425
transfer shall be deemed to be cancelled and such person shall be 426
deemed to be a member of the state employees retirement system.] 427
Any member who is also a participant in an alternate retirement 428
program, as defined in subsection (u) of section 5-154, the state 429
employees retirement system or any other retirement system may 430
purchase service credit in the Connecticut teachers' retirement system 431
in accordance with section 10-183e, provided such member withdraws 432
any and all employee funds and forfeits all employer contributions and 433
earnings thereon in the respective system, other than the Social Security 434
System or the nonregular military retirement system under 10 USC 435
Chapter 1223, as amended from time to time. No person shall be eligible 436
for membership in more than one such system or program at the same 437
time for the same service. 438 Raised Bill No. 1080
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Sec. 6. Section 10-183v of the general statutes is repealed and the 439
following is substituted in lieu thereof (Effective July 1, 2021): 440
(a) (1) Except as provided in subdivisions (2) and (3) of this subsection 441
and subsection (b) of this section, a teacher receiving retirement benefits 442
from the system may not be employed by an employer in a teaching 443
position receiving compensation paid out of public money appropriated 444
for school purposes except that such teacher may be employed in such 445
a position and receive no more than forty-five per cent of the maximum 446
salary level for the assigned position for each school year. Any teacher 447
who receives in excess of such amount shall reimburse the board for the 448
amount of such excess. 449
(2) Commencing July 1, 2016, to June 30, 2020, inclusive, the 450
provisions of subdivision (1) of this subsection establishing a limitation 451
on the compensation of a reemployed teacher and requiring the 452
reimbursement of any amount received in excess of that limitation shall 453
not apply to a teacher who (A) is receiving retirement benefits from the 454
system based on thirty-four or more years of credited service, (B) is 455
reemployed as a teacher in a district designated as an alliance district 456
pursuant to section 10-262u, and (C) was serving as a teacher in that 457
district on July 1, 2015. 458
(3) On and after July 1, 2016, a teacher receiving retirement benefits 459
from the system may be employed in a teaching position and receive (A) 460
compensation paid out of public money appropriated for school 461
purposes, (B) health insurance benefits, and (C) other employment 462
benefits provided to active teachers employed by such school system, 463
provided such teacher does not receive a retirement income during such 464
employment. Payment of such teacher's retirement income shall resume 465
on the first day of the month following the termination of such 466
employment. The compensation under subparagraph (A) of this 467
subdivision shall be provided in accordance with subsection (c) of this 468
section. 469
(4) Notice of employment under this subsection shall be sent to the 470 Raised Bill No. 1080
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board by the employer at the beginning and end of the school year, or 471
assignment within the school year when reemployed for less than the 472
full school year. 473
(b) A teacher receiving retirement benefits from the system may be 474
reemployed for up to one full school year by a local board of education, 475
the State Board of Education or by any constituent unit of the state 476
system of higher education (1) in a position designated by the 477
Commissioner of Education as a subject shortage area for the school year 478
in which the teacher is being employed, (2) at a school located in a school 479
district identified as a priority school district, pursuant to section 10-480
266p, for the school year in which the teacher is being employed, (3) if 481
the teacher graduated from a public high school in an educational 482
reform district, as defined in section 10-262u, or (4) if the teacher 483
graduated from an historically black college or university or a Hispanic-484
serving institution, as those terms are defined in the Higher Education 485
Act of 1965, P.L. 89-329, as amended from time to time, and reauthorized 486
by the Higher Education Opportunity Act of 2008, P.L. 110-315, as 487
amended from time to time. Notice of such reemployment shall be sent 488
to the board by the employer and by the retired teacher at the time of 489
hire and at the end of the assignment. Such reemployment may be 490
extended for [an] one additional school year, not to exceed two school 491
years over the lifetime of the retiree, provided the local board of 492
education (A) submits a written request for approval to the Teachers' 493
Retirement Board, (B) certifies that no qualified candidates are available 494
prior to the reemployment of such teacher, and (C) indicates the type of 495
assignment to be performed, the anticipated date of rehire and the 496
expected duration of the assignment. 497
(c) The employment of a teacher under subsections (a) and (b) of this 498
section shall not be considered as service qualifying for continuing 499
contract status under section 10-151 and the salary of such teacher shall 500
be fixed at an amount at least equal to that paid other teachers in the 501
same school system with similar training and experience for the same 502
type of service. 503 Raised Bill No. 1080
LCO No. 5547 17 of 22
(d) No person shall be entitled to survivor's benefits under subsection 504
(f) of section 10-183f, as amended by this act, as a result of reemployment 505
under this section. 506
(e) The same option plan of retirement benefits in effect prior to 507
reemployment shall continue for a reemployed teacher during 508
reemployment. 509
(f) Any member in violation of any provision of this section, as 510
determined by the board, shall be required to reimburse the board for 511
all amounts such member received in excess of the amount permitted 512
under this section. Such reimbursement shall be accomplished through 513
an offset of all or a portion of the excess amount which can be recaptured 514
commencing with the next immediate retirement benefit payment 515
issued to such member. Such member may request an alternative 516
payment method to reimburse the board for the excess amount through 517
an acceptable alternative method agreed to by the board. 518
(g) In no event shall a retired member be permitted to revert to active 519
status after the effective date of retirement, except a member may 520
suspend their retirement benefit for reemployment purposes. 521
[(f)] (h) The provisions of this section in effect on June 30, 2003, 522
revision of 1958, revised to January 1, 2003, shall be applicable to any 523
person making contributions to the Teachers' Retirement System on 524
June 30, 2003, in accordance with said provisions. 525
(i) For purposes of this section, "employed" and "reemployed" mean 526
to hire, retain or otherwise procure the services of a retired teacher or 527
member by an employer. 528
Sec. 7. Section 10-183y of the general statutes is repealed and the 529
following is substituted in lieu thereof (Effective July 1, 2021): 530
Any member may appeal to the Teachers' Retirement Board for 531
reconsideration of a decision of the board affecting such member. Such 532
member shall submit with such appeal a written statement identifying 533 Raised Bill No. 1080
LCO No. 5547 18 of 22
the section of the general statutes that provides for the benefit to which 534
such member claims he or she was entitled and denied and received a 535
written denial for such request. Such appeal shall be made within ninety 536
days of the date of issuance of written notice of such decision. The board 537
shall meet to review such member's records and, if requested in writing, 538
allow such member to appear at such meeting. The board shall render a 539
written decision within sixty days of receipt of such request for 540
reconsideration. 541
Sec. 8. Section 10-183aa of the general statutes is repealed and the 542
following is substituted in lieu thereof (Effective July 1, 2021): 543
(a) (1) An active member is eligible for a disability allowance if he or 544
she has [(1)] (A) become disabled as a result of any sickness or injury 545
incurred in the performance of his or her duty as a teacher, without 546
regard to the member's accumulated years of service at the time the 547
disability is incurred; or [(2)] (B) accumulated at least five years of 548
service in the public schools and becomes disabled, without regard to 549
whether the disability was incurred in the performance of his or her 550
duty as a teacher. 551
(2) Any active member seeking a disability allowance shall submit to 552
the board a formal application for disability allowance, which shall 553
include the following: (A) The member's application; (B) the member's 554
birth certificate or, in lieu thereof, a notarized statement supported by 555
other evidence satisfactory to the board; (C) records of service, if such 556
records are required by the board to determine a salary rate or years of 557
creditable service; (D) a physician's statement of health for the member, 558
including, but not limited to, medical reports and office notes from such 559
physician; (E) in the case of a member who is married, a marriage 560
certificate; (F) an employer's statement regarding work performance, 561
attendance records and any other information regarding the member's 562
disability; (G) the member's statement outlining the effect his or her 563
impairment has on the ability to perform the duties of his or her 564
occupation; and (H) any other documentation required by the board. 565
For any formal application for disability allowance filed on or after July 566 Raised Bill No. 1080
LCO No. 5547 19 of 22
1, 1986, upon a finding by the board that extenuating circumstances 567
relating to the health of an active member caused a delay in the filing of 568
such member's complete formal application for disability allowance, the 569
board may deem such application to have been filed up to three months 570
earlier than the actual date of such filing. 571
(b) The disability allowance is computed as follows: Two per cent 572
times credited service to the date of disability multiplied by average 573
annual salary, provided such allowance shall not be less than fifteen per 574
cent or more than fifty per cent of the member's average annual salary. 575
In no case shall such disability allowance, less cost of living adjustments, 576
plus any initial award of Social Security benefits and workers' 577
compensation, exceed seventy-five per cent of the member's average 578
annual salary. 579
(c) The board shall designate a medical committee to be composed of 580
no more than five physicians. If required, other physicians may be 581
employed to report on special cases. Such medical committee shall 582
review each application for a disability allowance and shall make 583
findings and recommendations in writing to the board. The medical 584
committee shall perform additional examinations or case reviews as 585
deemed necessary by the board. Members of such committee shall 586
receive compensation for their services at a rate to be determined by the 587
board. 588
(d) The disability allowance being paid to a member shall cease when 589
and if the disability ends. The board may determine that a member's 590
disability has ended if it finds, upon the recommendation of its medical 591
committee, that the member has failed to pursue an appropriate 592
program of treatment. In either event, such member shall receive 593
credited service for the years he received such disability allowance 594
subject to a maximum total credit of thirty years, or actual years of 595
credited service to the date the disability commenced, whichever is 596
greater. Such member, if eligible, may then (1) retire on a normal, early 597
or proratable retirement benefit or (2) retain a vested right to a deferred 598
normal, early or proratable retirement benefit. Upon attainment of the 599 Raised Bill No. 1080
LCO No. 5547 20 of 22
member's normal retirement date, as determined by his age and 600
credited service, including the credited service granted by this 601
subsection, the member's disability allowance shall convert to a normal 602
or other service retirement, which shall be payable either in the normal 603
form or under an optional payment form under section 10-183j. The 604
board may require periodic medical examinations. 605
(e) No credit for a period of service of any kind prior to the months 606
in which contribution therefor is made shall be given under this chapter 607
or any special act in determining service in connection with an 608
application for disability allowance other than for injury received in 609
performance of duty as a teacher if such disability occurred within five 610
years after contributions and required interest on account of such period 611
were paid in full. The foregoing limitation shall not apply to (1) any 612
reinstatement of prior Connecticut teaching service, or (2) credit 613
obtained immediately after transfer from the state employees retirement 614
system under this chapter for service previously credited in said system; 615
but in the case of such transfer, no allowance on account of disability 616
occurring within such five-year period, other than for injury received in 617
performance of duty as a teacher, shall exceed the benefit which would 618
have been payable by said system if transfer had not been made. 619
(f) During the first twenty-four months of payment of the disability 620
allowance to a member, twenty per cent of all of such member's outside 621
earned income or wages shall be offset against the disability allowance 622
payable, unless the board determines that such earned income or wages 623
are being paid as part of the rehabilitation of the member. At the 624
expiration of such twenty-four-month period, if the total of the disability 625
allowance and outside earned income exceeds one hundred per cent of 626
average annual salary, the disability allowance will be reduced by the 627
amount of such excess over one hundred per cent. The board shall adopt 628
regulations, in accordance with the provisions of chapter 54, concerning 629
procedures for verification of the income of members in receipt of a 630
disability allowance. 631
(g) All members of the teachers' retirement system who are receiving 632 Raised Bill No. 1080
LCO No. 5547 21 of 22
disability payments under subsection (e) of section 10-183g of the 633
general statutes, revision of 1958, revised to 1979, may, using a form 634
provided by the board, elect to have their disability payments 635
recomputed with regard to the percentage basis and pursuant to the 636
provisions of this section and section 10-183bb. Such election shall not 637
be revocable. 638
Sec. 9. (NEW) (Effective July 1, 2021) (a) The Teachers' Retirement 639
Board shall establish a rollover account for each active, inactive and 640
disabled member who submits a formal application of retirement, as 641
defined in section 10-183b of the general statutes, as amended by this 642
act. Any such member may make rollover contributions of any pretax 643
assets maintained in an eligible retirement plan to such rollover account 644
at any time within two months prior to such member's retirement date, 645
as designated in such application. The board shall not accept any such 646
rollover contribution after a member's retirement date. For purposes of 647
this section, "eligible retirement plan" means an eligible retirement plan 648
as defined in Section 402(c)(8)(B) of the Internal Revenue Code of 1986, 649
or any subsequent corresponding internal revenue code of the United 650
States, as amended from time to time. 651
(b) Commencing with retirements effective September 1, 2021, or 652
later, any amount in a retired member's rollover account shall be 653
distributed to such member in the form of an actuarially equivalent 654
annuity for life, using the annuity rates adopted by the board for the 655
selected retirement date and under the terms and conditions of the 656
payment plan option the member selected on his or her formal 657
application of retirement, as defined in section 10-183b of the general 658
statutes, as amended by this act. If such member dies prior to the date 659
of his or her retirement, the accumulated rollover funds shall be 660
distributed under the terms and conditions of the payment plan option 661
the member elected on such application. 662
(c) The board shall adopt policies and procedures regarding the 663
prudent and efficient operation of rollover accounts established 664
pursuant to subsection (a) of this section, which shall include, but need 665 Raised Bill No. 1080
LCO No. 5547 22 of 22
not be limited to, application and payment procedures for such 666
accounts. 667
(d) The funds in a member's rollover account shall be used only for 668
distributions in accordance with subsection (b) of this section. The funds 669
in such account may not be applied toward the purchase of additional 670
credited service pursuant to section 10-183e of the general statutes. No 671
interest shall be applied to any funds contained in a member's rollover 672
account. 673
(e) Rollover contributions made in accordance with this section shall 674
not be treated as contributions, as defined in section 10-183b of the 675
general statutes, as amended by this act, and the board shall not subject 676
such contributions to the limitations imposed under Section 415(c) of the 677
Internal Revenue Code of 1986, or any subsequent corresponding 678
internal revenue code of the United States, as amended from time to 679
time. 680
This act shall take effect as follows and shall amend the following
sections:
Section 1 July 1, 2021 10-183b
Sec. 2 July 1, 2021 10-183f
Sec. 3 July 1, 2021 10-183i(a)
Sec. 4 July 1, 2021 10-183l
Sec. 5 July 1, 2021 10-183p
Sec. 6 July 1, 2021 10-183v
Sec. 7 July 1, 2021 10-183y
Sec. 8 July 1, 2021 10-183aa
Sec. 9 July 1, 2021 New section
Statement of Purpose:
To revise and update the teachers' retirement system statutes to align
with current practices.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
underlined.]