Connecticut House Bill HB05878

Connecticut 2023 Regular Session

• Introduced: 1/18/23
• Refer: 1/18/23

Caption

An Act Concerning The Municipal Employees' Retirement System And Reemployment.

Impact

The proposed amendments would prohibit certain retired municipal employees from collecting their retirement allowance while being reemployed unless they meet specific criteria, such as being over the age of 59.5 years and working fewer than 20 hours per week, not more than 90 days in a calendar year, or in positions that do not qualify for MERS participation. These changes could significantly impact the retirement plans and financial security of municipal employees, especially those looking to supplement their income post-retirement.

Summary

House Bill 05878 aims to amend existing state statutes regarding the Municipal Employees' Retirement System (MERS) in Connecticut. The bill specifically targets retirees who wish to return to work within a municipality that is part of the MERS. Under the current law, these retirees can face complex regulations surrounding their right to collect retirement benefits while being reemployed. This bill seeks to clarify and limit those conditions, introducing new age thresholds and restrictions on hours worked and terms of employment during reemployment.

Contention

Discussion around HB 05878 is likely to center on the balance between allowing retired employees to return to work and the financial sustainability of the retirement system. Advocates for the bill may argue that it preserves the integrity of the retirement system and discourages abuse of benefits. However, opponents of the bill could suggest that these restrictions unfairly limit the opportunities for retired workers, which may be seen as an infringement on their rights to work and earn income after retirement.