Senate Bill No. 1080
Public Act No. 21-186
AN ACT CONCERNING VARIOUS 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 Section 10-183b of the general statutes is repealed and the
following is substituted in lieu thereof (Effective July 1, 2021):
As used in this chapter, unless the context otherwise requires:
(1) "Actuarial reserve basis" means a basis under which the liabilities
of the retirement system are determined under acceptable actuarial
methods and under which assets are accumulated under a program
designed to achieve a proper balance between the accumulated assets
and the liabilities of the system.
(2) "Amortization of unfunded liabilities" means: (A) For fiscal years
ending on or before June 30, 2019, a systematic program of annual
payments determined as a level per cent of expected member annual
salaries in lieu of a lump sum payment; and (B) for fiscal years ending
on or after June 30, 2020, a systematic program of annual payments,
transitioning equally over five consecutive fiscal years from a level per
cent of expected annual member salaries to a level payment, in lieu of a
lump sum payment. Senate Bill No. 1080
Public Act No. 21-186 2 of 23
(3) "Annual salary" means the annual salary rate for service as a
Connecticut teacher during a school year but not including unused sick
leave, unused vacation, terminal pay, coaching or extra duty
assignments, unless compensation for coaching or extra duty
assignment was included in salary for which contributions were made
prior to July 1, 1971. In no event shall annual salary include amounts
determined by the board to be included for the purpose of inflating the
member's average annual salary. The inclusion in annual salary of
amounts paid to the member, in lieu of payment by the employer for the
cost of benefits, insurance, or individual retirement arrangements which
in prior years had been paid by the employer and not included in the
member's annual salary, shall be prima facie evidence that such
amounts are included for the purpose of inflating the member's average
annual salary. Annual salary shall not (A) include payments the timing
of which may be directed by the member, (B) include payments to a
superintendent pursuant to an individual contract between such
superintendent and a board of education, of amounts which are not
included in base salary, or (C) exceed the maximum amount allowed
under Section 401(a)(17) of the Internal Revenue Code for the applicable
limitation year, provided in no event shall the limitation under Section
401(a)(17) of the Internal Revenue Code apply to the annual salary of a
member whose membership began prior to January 1, 1996, if such
limitation would reduce the amount of the member's annual salary
below the amount permitted for calculation of the member's retirement
benefit under chapter 167a, without regard to the limitation under
Section 401(a)(17) of the Internal Revenue Code. Annual salary shall
include amounts paid to the member during a sabbatical leave during
which mandatory contributions were remitted, provided such member
returned to full-time teaching for at least five full years following the
completion of such leave.
(4) "Average annual salary" means the average annual salary received
during the three years of highest salary. Senate Bill No. 1080
Public Act No. 21-186 3 of 23
(5) "Board" means the Teachers' Retirement Board.
(6) "Child" means a natural child, an adopted child, or a stepchild of
a deceased member who has been a stepchild for at least one year
immediately prior to the date on which the member died. A child is a
"dependent child" of a deceased member if at the time of the member's
death (A) the member was living with the child or providing or
obligated to provide, by agreement or court order, a reasonable portion
of the support of the child, and (B) the child (i) is unmarried and has not
attained age eighteen, or (ii) is disabled and such disability began prior
to the child's attaining age eighteen.
(7) "Contributions" means amounts withheld pursuant to this chapter
and paid to the board by an employer from compensation payable to a
member. Prior to July 1, 1989, "mandatory contributions" are
contributions required to be withheld under this chapter and consist of
five per cent regular contributions and "one per cent contributions".
From July 1, 1989, to June 30, 1992, "mandatory contributions" are
contributions required to be withheld under this chapter and consist of
five per cent regular contributions and one per cent health
contributions. From July 1, 1992, to June 30, 2004, "mandatory
contributions" are contributions required to be withheld under this
chapter and consist of six per cent "regular contributions" and one per
cent health contributions. From July 1, 2004, to December 31, 2017,
"mandatory contributions" are contributions required to be withheld
under this chapter and consist of six per cent regular contributions and
one and one-fourth per cent health contributions. From January 1, 2018,
to December 31, 2019, inclusive, "mandatory contributions" are
contributions required to be withheld under this chapter and consist of
seven per cent "regular contributions" and one and one-fourth per cent
health contributions. On and after January 1, 2020, "mandatory
contributions" are contributions required to be withheld under this
chapter and consist of seven per cent "regular contributions" and one Senate Bill No. 1080
Public Act No. 21-186 4 of 23
and one-fourth per cent health contributions, except that no health
contributions shall be required for an employee of the state that (A) has
completed the vesting service necessary to receive health benefits
provided to retired state employees, and (B) does not participate in any
group health insurance plans maintained for retired teachers. Nothing
in this subdivision shall affect any other obligation of such a state
employee to contribute to the state's retiree health care trust fund.
"Voluntary contributions" are contributions by a member authorized to
be withheld under section 10-183i, as amended by this act.
(8) "Credited interest" means interest at the rate from time to time
fixed by the board consistent with industry standards and practices.
Such interest shall be applied to a member's account based on the
balance as of the previous June thirtieth. Credited interest shall be
assessed on any mandatory contributions which were due but not
remitted prior to the close of the school year for which salary was paid.
(9) "Current service" means service rendered in the current fiscal year.
(10) "Dependent former spouse" means a former spouse of a deceased
member who (A) has in his or her care a dependent child of the deceased
member; and (B) was receiving, or was entitled to receive, from the
deceased member at the time of the death of the deceased member, at
least one-half of his or her support; and (C) has not remarried; and (D)
is the parent of the child or adopted the child while married to the
member and before the child attained age eighteen or, while married to
the member, both of them adopted the child before the child attained
age eighteen.
(11) "Dependent parent" means a parent of a deceased member who
(A) has reached the age of sixty-five; and (B) has not married after the
death of the member; and (C) was receiving at least one-half of his or
her support from the member at the time of the member's death and files
proof of such support within two years of the date of the member's Senate Bill No. 1080
Public Act No. 21-186 5 of 23
death; and (D) is not receiving, or entitled to a federal or state old age
benefit based on the parent's own earnings, equal to or greater than the
amount the parent would be entitled to as a dependent parent under
this chapter. A "parent of a deceased member" is (i) the mother or father
of a deceased member; or (ii) a stepparent of a deceased member by a
marriage entered into before the member attained age sixteen; or (iii) an
adopting parent of a deceased member who adopted the deceased
member before the member attained age sixteen.
(12) "Designated beneficiary" means a person designated on a form
prescribed by the board by a member to receive amounts which become
payable under this chapter as the result of the member's death whether
before or after retirement. If a designated beneficiary is not living at the
time of the death of a member, the amounts that would have been
payable to the designated beneficiary shall be paid to the member's
estate.
(13) "Disabled" means the inability to perform any teaching service,
whether or not such service is performed full-time or part-time, in a
public or nonpublic school or a nonschool setting, on a volunteer basis
or for compensation, within or without the state, or engage in any
substantial gainful activity by reason of any medically determinable
physical or mental impairment [which] that (A) is permanent or can be
expected to last continually for not less than twelve months from the
onset of such impairment, or (B) can be expected to result in death or to
be of long-continued and indefinite duration, except that during the first
twenty-four months that a member is receiving a disability allowance,
"disabled" means the inability to perform the usual duties of his
occupation by reason of any such impairment.
(14) "Employer" means an elected school committee, a board of
education, the State Board of Education, the Office of Early Childhood,
the Board of Regents for Higher Education or any of the constituent
units, the governing body of the Children's Center and its successors, Senate Bill No. 1080
Public Act No. 21-186 6 of 23
the E. O. Smith School and any other activity, institution or school
employing members.
(15) "Formal leave of absence" means any absence from active service
in the public schools of Connecticut formally granted by a member's
employer as evidenced by contemporary records of the employer,
provided in the case of an absence due to illness, medical or other
evidence of such illness may, at the discretion of the Teachers'
Retirement Board, be accepted in lieu of evidence of the formal granting
of a leave.
(16) "Formal application of retirement" means (A) the member's
application, birth certificate or notarized statement supported by other
evidence satisfactory to the board, in lieu thereof, (B) records of service,
[when] if such records are required by the board to determine a salary
rate or years of creditable service, (C) a statement of payment plan,
[and,] including, if applicable, the fixed period of time selected by a
member under Plan C or the coparticipant's share designated under
Plan D, (D) in the case of an application for a disability benefit, a
physician's or an advanced practice registered nurse's statement of
health, and (E) any other documentation required by the board.
(17) "Funding" means the accumulation of assets in advance of the
payment of retirement allowances in accordance with a definite
actuarial program.
(18) "Member" means any Connecticut teacher employed for an
average of at least one-half of each school day, except that no teacher
who under any provision of the general statutes elects not to participate
in the system shall be a member unless and until the teacher elects to
participate in the system. Members teaching in a nonpublic school
classified as a public school by the board under the provisions of this
section may continue as members as long as they continue as teachers
in such school even if the school ceases to be so classified. A former Senate Bill No. 1080
Public Act No. 21-186 7 of 23
teacher who has not withdrawn his or her accumulated contributions
shall be an "inactive member". A member who, during the period of a
formal leave of absence granted by his or her employer, but not
exceeding an aggregate of ten school months, continues to make
mandatory contributions to the board, retains his or her status as an
active member.
(19) "Normal cost" means the amount of contribution which the state
is required to make into the retirement fund in order to meet the
actuarial cost of current service.
(20) "Public school" means any day school conducted within or
without this state under the orders and superintendence of a duly
elected school committee, a board of education, the State Board of
Education, the Office of Early Childhood, the board of governors or any
of its constituent units, the E. O. Smith School, the Children's Center and
its successors, the State Education Resource Center established pursuant
to section 10-4q of the 2014 supplement to the general statutes, revision
of 1958, revised to January 1, 2013, the State Education Resource Center
established pursuant to section 10-357a, joint activities of boards of
education authorized by subsection (b) of section 10-158a and any
institution supported by the state at which teachers are employed or any
incorporated secondary school not under the orders and
superintendence of a duly elected school committee or board of
education but located in a town not maintaining a high school and
providing free tuition to pupils of the town in which it is located, and
which has been approved by the State Board of Education under the
provisions of part II of chapter 164, provided that such institution or
such secondary school is classified as a public school by the retirement
board.
(21) "Retirement allowance" means payments for life derived from
member contributions, including credited interest, and contributions
from the state. Senate Bill No. 1080
Public Act No. 21-186 8 of 23
(22) "School year" means the twelve months ending on June thirtieth
of each year.
(23) "Surviving spouse" means a widow or widower of a deceased
member who (A) was living with the member at the time of the
member's death, or receiving, or entitled by court order or agreement to
receive, regular support payments from the member, and (B) has not
remarried.
(24) "Survivors" means a surviving spouse, a dependent former
spouse, a dependent child and a dependent parent.
(25) "System" means the Connecticut teachers' retirement system.
(26) "Teacher" means (A) any teacher, permanent substitute teacher,
principal, assistant principal, supervisor, assistant superintendent or
superintendent employed by the public schools in a professional
capacity while possessing a certificate or permit issued by the State
Board of Education, provided on and after July 1, 1975, such certificate
shall be for the position in which the person is then employed, except as
provided for in section 10-183qq, (B) certified personnel who provide
health and welfare services for children in nonprofit schools, as
provided in section 10-217a, under an oral or written agreement, (C) any
person who is engaged in teaching or supervising schools for adults if
the annual salary paid for such service is equal to or greater than the
minimum salary paid for a regular, full-time teaching position in the
day schools in the town where such service is rendered, (D) a member
of the professional staff of the State Board of Education, the Office of
Early Childhood, or of the Board of Regents for Higher Education or any
of the constituent units, and (E) a member of the staff of the State
Education Resource Center established pursuant to section 10-4q of the
2014 supplement to the general statutes, revision of 1958, revised to
January 1, 2013, or the State Education Resource Center established
pursuant to section 10-357a, employed in a professional capacity while Senate Bill No. 1080
Public Act No. 21-186 9 of 23
possessing a certificate or permit issued by the State Board of Education.
A "permanent substitute teacher" is one who serves as such for at least
ten months during any school year.
(27) "Unfunded liability" means the actuarially determined value of
the liability for service before the date of the actuarial valuation less the
accumulated assets in the retirement fund.
(28) "Internal Revenue Code" means the Internal Revenue Code of
1986, or any subsequent corresponding internal revenue code of the
United States, as from time to time amended, and any regulations
promulgated under or interpretations of said code that may affect this
chapter.
(29) "Limitation year" means the twelve-month period beginning
each July first and ending each June thirtieth.
Sec. 2. Section 10-183f of the general statutes is repealed and the
following is substituted in lieu thereof (Effective July 1, 2021):
(a) A member is eligible to receive a normal retirement benefit [who]
if such member (1) has attained age sixty and has accumulated twenty
years of credited service in the public schools of Connecticut, or (2) has
attained any age and has accumulated thirty-five years of credited
service, at least twenty-five years of which are service in the public
schools of Connecticut.
(b) A member is eligible to receive a proratable retirement benefit
[who] if such member has attained age sixty prior to termination of
service and has accumulated at least ten years of credited service in the
public schools of Connecticut.
(c) A member is eligible to receive an early retirement benefit [who]
if such member has accumulated twenty-five years of credited service
at least twenty years of which are service in the public schools of Senate Bill No. 1080
Public Act No. 21-186 10 of 23
Connecticut, or [who] if such member has attained the age of fifty-five
and has accumulated at least twenty years of credited service, at least
fifteen of which are service in the public schools of Connecticut.
(d) A member is eligible to receive a deferred vested retirement
benefit beginning at age sixty [who] if such member: (1) Has
accumulated ten years of credited service in the public schools of
Connecticut; and (2) terminates service before becoming eligible for any
other retirement benefit; and (3) leaves his or her accumulated
contributions with the system.
(e) Repealed by P.A. 79-541, S. 5, 6.
(f) The survivors of a member who dies (1) while in service in the
public schools of Connecticut, (2) within two months after withdrawal
from such service and prior to the effective date of such member's
retirement or (3) while receiving a disability benefit under section 10-
183aa, as amended by this act, shall receive survivors' benefits. [, except
that, if a member who has elected a coparticipant option, under section
10-183j, dies after such option becomes effective, such coparticipant
option shall be given effect and no survivors' benefits shall be payable.]
Before any survivors' benefits are paid, the board shall receive such
applications and other documents and information as it deems
necessary.
(g) Notwithstanding any provision of this chapter, pursuant to
Section 401(a)(9) of the Internal Revenue Code, a member shall begin
receiving benefits under this chapter no later than April first of the
calendar year following the calendar year in which (1) the member
attains age seventy and one-half, or seventy-two for members who
attain such age on or after January 1, 2020, or (2) if the member retires
after age seventy and one-half, [the] or seventy-two for members who
attain such age on or after January 1, 2020, in the calendar year in which
such member retires. Senate Bill No. 1080
Public Act No. 21-186 11 of 23
Sec. 3. Subsection (a) of section 10-183i of the general statutes is
repealed and the following is substituted in lieu thereof (Effective July 1,
2021):
(a) A member may make voluntary contributions to the system and
may, no more than once, withdraw such voluntary contributions from
the system under rules of the board. Any voluntary contribution shall
be made solely by payroll deduction of an amount subject to state,
federal or local tax in the tax or income year in which such voluntary
contribution is made. Voluntary contributions shall be subject to the
limitations imposed under Section 415(c) of the Internal Revenue Code
for the applicable limitation year. Such contributions shall earn credited
interest. Upon retirement such member shall elect to receive the
accumulated contributions plus credited interest either in a lump sum
or in the form of an actuarially equivalent annuity for life. Such lump
sum, [or] if elected, shall be paid not later than three months after the
effective date of retirement, except the board may delay payment of
such lump sum in the case of extenuating circumstances. If such delay
occurs, the board shall submit a written notice to the member explaining
the nature of the extenuating circumstances and an estimate as to when
such lump sum shall be paid. Payment of such annuity, if elected, shall
[be paid or commenced to be paid] commence when the first payment
of such member's other retirement benefit is made. If such member dies
before the effective date of his or her retirement, the accumulated
contributions plus credited interest shall be paid to such member's
designated beneficiary.
Sec. 4. Section 10-183l of the general statutes is repealed and the
following is substituted in lieu thereof (Effective July 1, 2021):
(a) (1) On and after July 1, 1991, the management of the system shall
continue to be vested in the Teachers' Retirement Board, whose
members shall include the Treasurer, the Secretary of the Office of Policy
and Management and the Commissioner of Education, or their Senate Bill No. 1080
Public Act No. 21-186 12 of 23
designees, who shall be voting members of the board, ex officio. (2) On
or before June 15, 1985, and quadrennially thereafter, the members of
the system shall elect from their number, in a manner prescribed by said
board, two persons to serve as members of said board for terms of four
years beginning July first following such election. Both of such persons
shall be active teachers who shall be nominated by the members of the
system who are not retired and elected by all the members of the system.
On or before July 1, 1991, and quadrennially thereafter, the members of
the system shall elect from their number, in a manner prescribed by said
board, three persons to serve as members of said board for terms of four
years beginning July first following such election. Two of such persons
shall be retired teachers who shall be nominated by the retired members
of the system and elected by all the members of the system and one shall
be an active teacher who shall be nominated by the members of the
system who are not retired and elected by all the members of the system.
(3) On or before July 1, 2011, and quadrennially thereafter, the members
of the system shall elect from their number, in a manner prescribed by
said board, one person to serve as a member of said board for a term of
four years beginning July first following such election. Such person shall
be an active teacher who shall be nominated by the members of the
system who are not retired, elected by all the members of the system
and a member of an exclusive representative of a teachers' bargaining
unit that is not represented by the members of the board elected under
subdivision (2) of this subsection. (4) If a vacancy occurs in the positions
filled by the members of the system who are not retired, said board shall
elect a member of the system who is not retired to fill the unexpired
portion of the term. If a vacancy occurs in the positions filled by the
retired members of the system, said board shall elect a retired member
of the system to fill the unexpired portion of the term. The Governor
shall appoint five public members to said board in accordance with the
provisions of section 4-9a, one of whom shall be the mayor, first
selectman or chief elected official of a municipality. On and after [the
effective date of this section] October 31, 2017, the Governor shall fill the Senate Bill No. 1080
Public Act No. 21-186 13 of 23
next vacant position on the board that is appointed by the Governor
with a person who is the mayor, first selectman or chief elected official
of a municipality. The members of the board shall serve without
compensation, but shall be reimbursed for any expenditures or loss of
salary or wages which they incur through service on the board. [All
decisions of the board shall require the approval of six members of the
board or a majority of the members who are present, whichever is
greater] A majority of the membership of the board shall constitute a
quorum for the transaction of any business.
(b) In carrying out its duties, the board may employ [a secretary] a
chief administrator with a title established by the board, who shall also
serve as secretary of the board, an administrative officer and such
[clerical and other assistance] staff as may be necessary. Their salaries
shall be paid by said board with the approval of the Secretary of the
Office of Policy and Management. Said board shall employ the services
of one or more actuaries, each of which shall be an individual or firm
having on its staff a fellow of the Society of Actuaries, to carry out the
actuarial duties of this section and sections 10-183b, as amended by this
act, 10-183r, and 10-183z and for such related purposes as the board
deems advisable. The cost of such services shall be charged to the funds
provided for in section 10-183r. Said board shall arrange for such
actuary to prepare an actuarial valuation of the assets and liabilities of
the system as of June 30, 1980, and at least once every two years
thereafter. On the basis of reasonable actuarial assumptions approved
by the board, such actuary shall determine the [normal cost] actuarially
determined employer contribution required to meet the actuarial cost of
current service and the unfunded accrued liability. Commencing
December 1, 2002, such valuation shall be completed prior to December
first biennially. Said board shall adopt all needed actuarial tables and
may adopt regulations and rules not inconsistent with this chapter,
including regulations and rules for payment of purchased service
credits and repayment of previously withdrawn accumulated Senate Bill No. 1080
Public Act No. 21-186 14 of 23
contributions. Said board shall establish [such funds as are] an
operational budget necessary for the management of the system. The
board may enter into such contractual agreements, in accordance with
established procedures, as may be necessary for the discharge of its
duties.
Sec. 5. Section 10-183p of the general statutes is repealed and the
following is substituted in lieu thereof (Effective July 1, 2021):
[(a) Any member of either the state employees retirement system or
the teachers' retirement system, if eligible to belong to the other or in
accordance with the provisions of subsection (h) of section 5-160 or
section 5-192e, may transfer from the one to which such member
belongs to the other or prior to the first of the month following three
months after June 28, 1985, to an alternate retirement program, as
defined in subsection (u) of section 5-154, when authorized to do so, in
the case of a transfer between said systems or a transfer from the
teachers' retirement system to an alternate retirement program, by the
concurrent action of the State Employees Retirement Commission and
the Teachers' Retirement Board. No person shall be eligible to
membership in more than one such system or program at the same time,
provided nothing contained herein shall affect the rights of any person
who, on June 18, 1953, was a member of both systems. Any member of
the teachers' retirement system who elects or has elected to participate
in an alternate retirement program shall receive a refund of all
contributions made by him into said system in lieu of any benefits under
said system. Any former state employee who was, during such
employee's period of employment, eligible to belong to either the state
employees retirement system or the teachers' retirement system and
who withdrew from the state employees retirement system after July 1,
1940, to become a member of the teachers' retirement system may be
credited in the teachers' retirement system with such member's period
of state service upon making application in writing to the secretary of Senate Bill No. 1080
Public Act No. 21-186 15 of 23
the Teachers' Retirement Board and paying contributions for such
period of service with credited interest from the date such service was
rendered.
(b) No person who has creditable service as a member of the state
employees retirement system and who transfers, on or after May 6, 1975,
to the teachers' retirement system shall be entitled to benefits from the
teachers' retirement system until such person has been a member of and
contributed to said system for a period of one year. If such transferee
dies or becomes disabled before completion of that one year, such
transfer shall be deemed to be cancelled and such person shall be
deemed to be a member of the state employees retirement system.]
Any member who is also a participant in an alternate retirement
program, as defined in subsection (u) of section 5-154, the state
employees retirement system or any other retirement system may
purchase service credit in the Connecticut teachers' retirement system
in accordance with section 10-183e, provided such member withdraws
any and all employee funds and forfeits all employer contributions and
earnings thereon in the respective system, other than the Social Security
System or the nonregular military retirement system under 10 USC
Chapter 1223, as amended from time to time. No person shall be eligible
for membership in more than one such system or program at the same
time for the same service.
Sec. 6. Section 10-183v of the general statutes is repealed and the
following is substituted in lieu thereof (Effective July 1, 2021):
(a) (1) Except as provided in subdivisions (2) and (3) of this subsection
and subsection (b) of this section, a teacher receiving retirement benefits
from the system may not be employed by an employer in a teaching
position receiving compensation paid out of public money appropriated
for school purposes except that such teacher may be employed in such
a position and receive no more than forty-five per cent of the maximum Senate Bill No. 1080
Public Act No. 21-186 16 of 23
salary level for the assigned position for each school year. Any teacher
who receives in excess of such amount shall reimburse the board for the
amount of such excess.
(2) Commencing July 1, 2016, to June 30, 2020, inclusive, the
provisions of subdivision (1) of this subsection establishing a limitation
on the compensation of a reemployed teacher and requiring the
reimbursement of any amount received in excess of that limitation shall
not apply to a teacher who (A) is receiving retirement benefits from the
system based on thirty-four or more years of credited service, (B) is
reemployed as a teacher in a district designated as an alliance district
pursuant to section 10-262u, and (C) was serving as a teacher in that
district on July 1, 2015.
(3) On and after July 1, 2016, a teacher receiving retirement benefits
from the system may be employed in a teaching position and receive (A)
compensation paid out of public money appropriated for school
purposes, (B) health insurance benefits, and (C) other employment
benefits provided to active teachers employed by such school system,
provided such teacher does not receive a retirement income during such
employment. Payment of such teacher's retirement income shall resume
on the first day of the month following the termination of such
employment. The compensation under subparagraph (A) of this
subdivision shall be provided in accordance with subsection (c) of this
section.
(4) Notice of employment under this subsection shall be sent to the
board by the employer at the beginning and end of the school year, or
assignment within the school year when reemployed for less than the
full school year.
(b) A teacher receiving retirement benefits from the system may be
reemployed for up to one full school year by a local board of education,
the State Board of Education or by any constituent unit of the state Senate Bill No. 1080
Public Act No. 21-186 17 of 23
system of higher education (1) in a position designated by the
Commissioner of Education as a subject shortage area for the school year
in which the teacher is being employed, (2) at a school located in a school
district identified as a priority school district, pursuant to section 10-
266p, for the school year in which the teacher is being employed, (3) if
the teacher graduated from a public high school in an educational
reform district, as defined in section 10-262u, or (4) if the teacher
graduated from an historically black college or university or a Hispanic-
serving institution, as those terms are defined in the Higher Education
Act of 1965, P.L. 89-329, as amended from time to time, and reauthorized
by the Higher Education Opportunity Act of 2008, P.L. 110-315, as
amended from time to time. Notice of such reemployment shall be sent
to the board by the employer and by the retired teacher at the time of
hire and at the end of the assignment. Such reemployment may be
extended for [an] one additional school year, not to exceed two school
years over the lifetime of the retiree, provided the local board of
education (A) submits a written request for approval to the Teachers'
Retirement Board, (B) certifies that no qualified candidates are available
prior to the reemployment of such teacher, and (C) indicates the type of
assignment to be performed, the anticipated date of rehire and the
expected duration of the assignment.
(c) The employment of a teacher under subsections (a) and (b) of this
section shall not be considered as service qualifying for continuing
contract status under section 10-151 and the salary of such teacher shall
be fixed at an amount at least equal to that paid other teachers in the
same school system with similar training and experience for the same
type of service.
(d) No person shall be entitled to survivor's benefits under subsection
(f) of section 10-183f, as amended by this act, as a result of reemployment
under this section.
(e) The same option plan of retirement benefits in effect prior to Senate Bill No. 1080
Public Act No. 21-186 18 of 23
reemployment shall continue for a reemployed teacher during
reemployment.
(f) Any member in violation of any provision of this section, as
determined by the board, shall be required to reimburse the board for
all amounts such member received in excess of the amount permitted
under this section. Such reimbursement shall be accomplished through
an offset of all or a portion of the excess amount which can be recaptured
commencing with the next immediate retirement benefit payment
issued to such member. Such member may request an alternative
payment method to reimburse the board for the excess amount through
an acceptable alternative method agreed to by the board.
(g) In no event shall a retired member be permitted to revert to active
status after the effective date of retirement, except a member may
suspend their retirement benefit for reemployment purposes.
[(f)] (h) The provisions of this section in effect on June 30, 2003,
revision of 1958, revised to January 1, 2003, shall be applicable to any
person making contributions to the Teachers' Retirement System on
June 30, 2003, in accordance with said provisions.
(i) For purposes of this section, "employed" and "reemployed" mean
to hire, retain or otherwise procure the services of a retired teacher or
member by an employer.
Sec. 7. Section 10-183y of the general statutes is repealed and the
following is substituted in lieu thereof (Effective July 1, 2021):
Any member may appeal to the Teachers' Retirement Board for
reconsideration of a decision of the board affecting such member. Such
member shall submit with such appeal a written statement identifying
the section of the general statutes that provides for the benefit to which
such member claims he or she was entitled and denied and received a
written denial for such request. Such appeal shall be made within ninety Senate Bill No. 1080
Public Act No. 21-186 19 of 23
days of the date of issuance of written notice of such decision. The board
shall meet to review such member's records and, if requested in writing,
allow such member to appear at such meeting. The board shall render a
written decision within sixty days of receipt of such request for
reconsideration.
Sec. 8. Section 10-183aa of the general statutes is repealed and the
following is substituted in lieu thereof (Effective July 1, 2021):
(a) (1) An active member is eligible for a disability allowance if he or
she has [(1)] (A) become disabled as a result of any sickness or injury
incurred in the performance of his or her duty as a teacher, without
regard to the member's accumulated years of service at the time the
disability is incurred; or [(2)] (B) accumulated at least five years of
service in the public schools and becomes disabled, without regard to
whether the disability was incurred in the performance of his or her
duty as a teacher.
(2) Any active member seeking a disability allowance shall submit to
the board a formal application for disability allowance, which shall
include the following: (A) The member's application; (B) the member's
birth certificate or, in lieu thereof, a notarized statement supported by
other evidence satisfactory to the board; (C) records of service, if such
records are required by the board to determine a salary rate or years of
creditable service; (D) a physician's statement of health for the member,
including, but not limited to, medical reports and office notes from such
physician; (E) in the case of a member who is married, a marriage
certificate; (F) an employer's statement regarding work performance,
attendance records and any other information regarding the member's
disability; (G) the member's statement outlining the effect his or her
impairment has on the ability to perform the duties of his or her
occupation; and (H) any other documentation required by the board.
For any formal application for disability allowance filed on or after July
1, 1986, upon a finding by the board that extenuating circumstances Senate Bill No. 1080
Public Act No. 21-186 20 of 23
relating to the health of an active member caused a delay in the filing of
such member's complete formal application for disability allowance, the
board may deem such application to have been filed up to three months
earlier than the actual date of such filing.
(b) The disability allowance is computed as follows: Two per cent
times credited service to the date of disability multiplied by average
annual salary, provided such allowance shall not be less than fifteen per
cent or more than fifty per cent of the member's average annual salary.
In no case shall such disability allowance, less cost of living adjustments,
plus any initial award of Social Security benefits and workers'
compensation, exceed seventy-five per cent of the member's average
annual salary.
(c) The board shall designate a medical committee to be composed of
no more than five physicians. If required, other physicians may be
employed to report on special cases. Such medical committee shall
review each application for a disability allowance and shall make
findings and recommendations in writing to the board. The medical
committee shall perform additional examinations or case reviews as
deemed necessary by the board. Members of such committee shall
receive compensation for their services at a rate to be determined by the
board.
(d) The disability allowance being paid to a member shall cease when
and if the disability ends. The board may determine that a member's
disability has ended if it finds, upon the recommendation of its medical
committee, that the member has failed to pursue an appropriate
program of treatment. In either event, such member shall receive
credited service for the years he received such disability allowance
subject to a maximum total credit of thirty years, or actual years of
credited service to the date the disability commenced, whichever is
greater. Such member, if eligible, may then (1) retire on a normal, early
or proratable retirement benefit, or (2) retain a vested right to a deferred Senate Bill No. 1080
Public Act No. 21-186 21 of 23
normal, early or proratable retirement benefit. Upon attainment of the
member's normal retirement date, as determined by his age and
credited service, including the credited service granted by this
subsection, the member's disability allowance shall convert to a normal
or other service retirement, which shall be payable either in the normal
form or under an optional payment form under section 10-183j. The
board may require periodic medical examinations.
(e) No credit for a period of service of any kind prior to the months
in which contribution therefor is made shall be given under this chapter
or any special act in determining service in connection with an
application for disability allowance other than for injury received in
performance of duty as a teacher if such disability occurred within five
years after contributions and required interest on account of such period
were paid in full. The foregoing limitation shall not apply to (1) any
reinstatement of prior Connecticut teaching service, or (2) credit
obtained immediately after transfer from the state employees retirement
system under this chapter for service previously credited in said system;
but in the case of such transfer, no allowance on account of disability
occurring within such five-year period, other than for injury received in
performance of duty as a teacher, shall exceed the benefit which would
have been payable by said system if transfer had not been made.
(f) During the first twenty-four months of payment of the disability
allowance to a member, twenty per cent of all of such member's outside
earned income or wages shall be offset against the disability allowance
payable, unless the board determines that such earned income or wages
are being paid as part of the rehabilitation of the member. At the
expiration of such twenty-four-month period, if the total of the disability
allowance and outside earned income exceeds one hundred per cent of
average annual salary, the disability allowance will be reduced by the
amount of such excess over one hundred per cent. The board shall adopt
regulations, in accordance with the provisions of chapter 54, concerning Senate Bill No. 1080
Public Act No. 21-186 22 of 23
procedures for verification of the income of members in receipt of a
disability allowance.
(g) All members of the teachers' retirement system who are receiving
disability payments under subsection (e) of section 10-183g of the
general statutes, revision of 1958, revised to 1979, may, using a form
provided by the board, elect to have their disability payments
recomputed with regard to the percentage basis and pursuant to the
provisions of this section and section 10-183bb. Such election shall not
be revocable.
Sec. 9. (NEW) (Effective July 1, 2021) (a) The Teachers' Retirement
Board shall establish a rollover account for each active, inactive and
disabled member who submits a formal application of retirement, as
defined in section 10-183b of the general statutes, as amended by this
act. Any such member may make rollover contributions of any pretax
assets maintained in an eligible retirement plan to such rollover account
at any time within two months prior to such member's retirement date,
as designated in such application. The board shall not accept any such
rollover contribution after a member's retirement date. For purposes of
this section, "eligible retirement plan" means an eligible retirement plan
as defined in Section 402(c)(8)(B) of the Internal Revenue Code of 1986,
or any subsequent corresponding internal revenue code of the United
States, as amended from time to time.
(b) Commencing with retirements effective September 1, 2021, or
later, any amount in a retired member's rollover account shall be
distributed to such member in the form of an actuarially equivalent
annuity for life, using the annuity rates adopted by the board for the
selected retirement date and under the terms and conditions of the
payment plan option the member selected on his or her formal
application of retirement, as defined in section 10-183b of the general
statutes, as amended by this act. If such member dies prior to the date
of his or her retirement, the accumulated rollover funds shall be Senate Bill No. 1080
Public Act No. 21-186 23 of 23
distributed under the terms and conditions of the payment plan option
the member elected on such application.
(c) The board shall adopt policies and procedures regarding the
prudent and efficient operation of rollover accounts established
pursuant to subsection (a) of this section, which shall include, but need
not be limited to, application and payment procedures for such
accounts.
(d) The funds in a member's rollover account shall be used only for
distributions in accordance with subsection (b) of this section. The funds
in such account may not be applied toward the purchase of additional
credited service pursuant to section 10-183e of the general statutes. No
interest shall be applied to any funds contained in a member's rollover
account.
(e) Rollover contributions made in accordance with this section shall
not be treated as contributions, as defined in section 10-183b of the
general statutes, as amended by this act, and the board shall not subject
such contributions to the limitations imposed under Section 415(c) of the
Internal Revenue Code of 1986, or any subsequent corresponding
internal revenue code of the United States, as amended from time to
time.