Analyst: CG Page 1 5/10/21
OFA Bill Analysis
SB 1080
AN ACT CONCERNING VARIOUS REVISIONS TO THE TEACHERS'
RETIREMENT SYSTEM.
SUMMARY:
The bill makes various changes to the statutes governing the
Teachers' Retirement System (TRS) that serve to clarify the
administration of benefits or bring the statutes into conformity with
current practice and federal law.
EFFECTIVE DATE: July 1, 2021
TRS Definitions (Section 1)
The bill modifies the definition of: 1)" Disabled" to provide standard
disability language and 2) "Formal application of retirement" to ensure
that a proper payment plan is designated, and documentation is filed
correctly.
Benefit Eligibility (Section 2)
The bill clarifies that the credited service must be in a public school
of Connecticut and updates the age at which minimum distribution
requirements must be made from 70 ½ to 72 for members who attain
age 72 on or after January 1, 2020 as required under federal law.
Member Voluntary Contributions (Section 3)
The bill specifies that voluntary contributions reflect after-tax
contributions withheld by the member’s employer from their annual
salary. It also provides alternative payment forms and the times for
payments under each. 2021SB-01080-R000666-BA.DOCX
Analyst: CG Page 2 5/10/21
Teachers' Retirement Board (Section 4)
The bill specifies that the majority of the membership of the
Teachers' Retirement Board is a quorum for the transaction of any
business and updates the title of the administrative head of the agency.
Under current law, there are 14 members of the teachers' retirement
board: three Ex-officio members or their designees (Secretary of the
Office of Policy and Management, State Treasurer, and Commissioner
of Education), 5 public members, two retired teachers, and four active
teachers.
Transfers between State Pension Systems (Section 5)
The bill eliminates obsolete language regarding transfers to the
Alternate Retirement Program (ARP) and clarifies the requirement for
obtaining credit for time served in the State Employees Retirement
System, ARP or other retirement systems (excluding Social Security
and nonregular military retirement system). Clarifies that no person
shall be eligible for membership in more than one retirement system at
the same time for the same service.
Reemployment of Retired Teachers (Section 6)
The bill clarifies the rules for reemployment of a retired teacher by
establishing guidelines for the repayment of funds if a member does
not suspend their pension after exceeding the 45% rule.
Under current law, the 45% rule for post-retirement employment
allows a member to retain their monthly pension benefit and permits
them to earn up to 45% of the maximum salary for the teaching
position.
Appeal to the Teachers' Retirement Board (TRB) (Section 7)
The bill specifies that a member must provide a statutory basis for
any appeal to the TRB for reconsideration of a decision of the Board.
Disability Allowance (Section 8) 2021SB-01080-R000666-BA.DOCX
Analyst: CG Page 3 5/10/21
The bill specifies the information a member must submit to the
board for a disability allowance. It also codifies the provision of a
three-month grace period to a member who may become disabled and
unable to meet the application deadlines.
Rollover Account (Section 9)
The bill provides language for the establishment of a rollover
account upon retirement to ensure the correct benefit is administered
and federal guidelines are met.
COMMITTEE ACTION
Appropriations Committee
Joint Favorable
Yea 50 Nay 0 (04/21/2021)