OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
SB-1081
AN ACT CONCERNING THE INTEREST RATE RELATING TO
TEACHERS' RETIREMENT SYSTEM COST -OF-LIVING
ALLOWANCES AND RESERVING CERTAIN LOTTERY FUND
REVENUE FOR THE CONNECTICUT TEACHERS' RETIREMENT
FUND BONDS SPECIAL CAPITAL RESERVE FUND.
Primary Analyst: CG 5/8/21
Contributing Analyst(s): EMG
OFA Fiscal Note
State Impact: None
Municipal Impact: None
Explanation
The bill, which makes conforming and technical changes, has no
anticipated fiscal impact.
Section 1 amends the statutes governing the Teachers' Retirement
System's (TRS) cost-of-living allowances (COLAs) by changing the
investment return threshold from 8.5% to 6.9% to align it with the
current assumed rate of return used in the TRS actuarial valuation. The
TRS actuary determined that the change in the investment return
threshold has no anticipated actuarial impact and therefore no fiscal
impact to the state contribution to the fund. The overarching
component of the COLA assumption is the annual rate of increase
granted by the Social Security Administration.
Section 2 which specifies that online Lottery Fund revenue are first
pledged for payment to the Teachers' Retirement Funds bonds special
capital reserve fund is technical in nature and has no fiscal impact.
2021SB-01081-R000667-FN.DOCX Page 2 of 2
The Out Years
State Impact: None
Municipal Impact: None
Sources: Cavanaugh Macdonald Consulting, COLA Assumptions for Actuarial
Valuations, 3/12/20