LCO No. 3568 1 of 11 General Assembly Raised Bill No. 1525 January Session, 2025 LCO No. 3568 Referred to Committee on APPROPRIATIONS Introduced by: (APP) AN ACT CONCERNING THE TEACHERS' RETIREMENT BOARD'S RECOMMENDATIONS FOR CHANGES TO THE TEACHERS' RETIREMENT SYSTEM STATUTES. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Subdivision (15) of section 10-183b of the general statutes 1 is repealed and the following is substituted in lieu thereof (Effective from 2 passage): 3 (15) "Employer" means an elected school committee, a board of 4 education, the State Board of Education, the Office of Early Childhood, 5 the Technical Education and Career System, the Board of Regents for 6 Higher Education or any of the constituent units, the governing body of 7 the Children's Center and its successors for members hired before July 8 1, 2025, The University of Connecticut Board of Trustees, the E. O. Smith 9 School, or any other activity, institution or school employing members, 10 except "employer" shall not include the State Education Resource Center 11 for members hired on or after July 1, 2025. 12 Sec. 2. Subdivision (21) of section 10-183b of the general statutes is 13 repealed and the following is substituted in lieu thereof (Effective from 14 Raised Bill No. 1525 LCO No. 3568 2 of 11 passage): 15 (21) "Public school" means any day school conducted within or 16 without this state under the orders and superintendence of a duly 17 elected school committee, a board of education, the State Board of 18 Education, the Office of Early Childhood, the Board of Regents for 19 Higher Education, or any of its constituent units, The University of 20 Connecticut Board of Trustees, the board of governors or any of its 21 constituent units, the Technical Education and Career System, the E. O. 22 Smith School, the Children's Center and its successors for members 23 hired before July 1, 2025, the State Education Resource Center 24 [established pursuant to section 10-4q of the 2014 supplement to the 25 general statutes, revision of 1958, revised to January 1, 2013, the State 26 Education Resource Center established pursuant to section 10-357a] for 27 members hired before July 1, 2025, joint activities of boards of education 28 authorized by subsection (b) of section 10-158a and (A) any institution 29 supported by the state at which teachers are employed or any 30 incorporated secondary school not under the orders and 31 superintendence of a duly elected school committee or board of 32 education but located in a town not maintaining a high school and 33 providing free tuition to pupils of the town in which it is located, and 34 which has been approved by the State Board of Education under the 35 provisions of part II of chapter 164, or (B) on and after July 1, 2023, any 36 school operated by an interdistrict magnet school operator described in 37 section 10-264s, provided such institution, secondary school or school is 38 classified as a public school by the retirement board. 39 Sec. 3. Subsection (g) of section 10-183g of the general statutes is 40 repealed and the following is substituted in lieu thereof (Effective July 1, 41 2025): 42 (g) A member's complete formal application for retirement, if sent by 43 mail, shall be deemed to have been filed with the board on the date such 44 application is postmarked. Such application for retirement shall be 45 irrevocable on the date the member retires. No benefit computed under 46 Raised Bill No. 1525 LCO No. 3568 3 of 11 subsections (a) to (d), inclusive, of this section and under subsections (a) 47 to (g), inclusive, of section 10-183aa, as amended by this act, shall 48 become effective until a member eligible for retirement under section 49 10-183f files with the board a complete formal application for retirement 50 and terminates service with such member's employer. Such benefit shall 51 accrue from the first day of the month following the calendar month in 52 which such application is filed and payment of such benefit in equal 53 monthly installments shall commence on the last day of the month in 54 which such benefit begins to accrue. The initial payment of such benefit 55 may be made not later than three months following the effective date of 56 retirement, provided such payment shall be retroactive to such effective 57 date. Upon a finding that extenuating circumstances relating to the 58 health of a member caused a delay in the filing of the member's complete 59 formal application, and such application is filed on or after July 1, 1986, 60 the board may deem such application to have been filed up to three 61 months earlier than the actual date of the filing. Upon a finding that 62 extenuating circumstances related to the health of a member caused a 63 delay in the filing of an election pursuant to subsection (g) of section 10-64 183aa, and such election is filed on or after July 1, 1986, the board may 65 deem such election to have been filed as of the date such member's 66 benefits would otherwise have been converted to a normal retirement 67 benefit under this section. 68 Sec. 4. Subsection (c) of section 10-183h of the general statutes is 69 repealed and the following is substituted in lieu thereof (Effective July 1, 70 2025): 71 (c) In lieu of a basic survivor's benefit and a lump sum death benefit, 72 a [sole] survivor who has attained age eighteen, and is the member's 73 designated beneficiary may elect to receive an amount equal to such 74 member's accumulated contributions together with credited interest. In 75 the absence of a designation, the member's surviving spouse or, if none, 76 the member's surviving children in equal shares or, if none, the 77 member's estate shall be entitled to the lump sum payment of the 78 accumulated contributions with credited interest. 79 Raised Bill No. 1525 LCO No. 3568 4 of 11 Sec. 5. Subsection (a) of section 10-183l of the general statutes is 80 repealed and the following is substituted in lieu thereof (Effective July 1, 81 2025): 82 (a) (1) On and after July 1, 1991, the management of the system shall 83 continue to be vested in the Teachers' Retirement Board, whose 84 members shall include the Treasurer, the Secretary of the Office of Policy 85 and Management and the Commissioner of Education, or their 86 designees, who shall be voting members of the board, ex officio. (2) On 87 or before June 15, 1985, and quadrennially thereafter, the members of 88 the system shall elect from their number, in a manner prescribed by said 89 board, two persons to serve as members of said board for terms of four 90 years beginning July first following such election. Both of such persons 91 shall be active teachers who shall be nominated by the members of the 92 system who are not retired and elected by all the members of the system. 93 On or before July 1, 1991, and quadrennially thereafter, the members of 94 the system shall elect from their number, in a manner prescribed by said 95 board, three persons to serve as members of said board for terms of four 96 years beginning July first following such election. Two of such persons 97 shall be retired teachers who shall be nominated by the retired members 98 of the system and elected by all the members of the system and one shall 99 be an active teacher who shall be nominated by the members of the 100 system who are not retired and elected by all the members of the system. 101 (3) On or before July 1, 2011, and quadrennially thereafter, the members 102 of the system shall elect from their number, in a manner prescribed by 103 said board, one person to serve as a member of said board for a term of 104 four years beginning July first following such election. Such person shall 105 be an active teacher who shall be nominated by the members of the 106 system who are not retired, elected by all the members of the system 107 and a member of an exclusive representative of a teachers' bargaining 108 unit that is not represented by the members of the board elected under 109 subdivision (2) of this subsection. (4) On or before October 1, 2023, and 110 in July quadrennially thereafter, the retired members of the system shall 111 elect from their number, in a manner prescribed by said board, two 112 Raised Bill No. 1525 LCO No. 3568 5 of 11 persons to serve as members of said board for a term of four years 113 beginning October first following such election. Both of such persons 114 shall be (A) retired teachers who are receiving a pension benefit from 115 the system, and (B) nominated and elected by the members of the 116 system who are retired. (5) If a vacancy occurs in the positions filled by 117 the members of the system who are not retired, said board shall elect a 118 member of the system who is not retired to fill the unexpired portion of 119 the term. If a vacancy occurs in the positions filled by the retired 120 members of the system, said board shall elect a retired member of the 121 system to fill the unexpired portion of the term. The Governor shall 122 appoint five public members to said board in accordance with the 123 provisions of section 4-9a, one of whom shall be the mayor, first 124 selectman or chief elected official of a municipality. On and after 125 October 31, 2017, the Governor shall fill the next vacant position on the 126 board that is appointed by the Governor with a person who is the 127 mayor, first selectman or chief elected official of a municipality. The 128 members of the board shall serve without compensation, but shall be 129 reimbursed for any expenditures or loss of salary or wages which they 130 incur through service on the board. A majority of the membership of the 131 board shall constitute a quorum for the transaction of any business. 132 Sec. 6. Section 10-183t of the general statutes is repealed and the 133 following is substituted in lieu thereof (Effective July 1, 2025): 134 (a) The board shall offer one or more health benefit plans to: Any 135 member receiving retirement benefits or a disability allowance from the 136 system; the spouse or surviving spouse of such member, and a disabled 137 dependent of such member if there is no spouse or surviving spouse, 138 provided such member, spouse, surviving spouse, or disabled 139 dependent is participating in Medicare Part A hospital insurance and 140 Medicare Part B medical insurance. The board may offer one or more 141 basic plans, the cost of which to any such member, spouse, surviving 142 spouse or disabled dependent shall be one-third of the basic plan's 143 premium equivalent, and one or more optional plans, provided such 144 member, spouse, surviving spouse or disabled dependent shall pay one-145 Raised Bill No. 1525 LCO No. 3568 6 of 11 third of the basic plan's premium equivalent plus the difference in cost 146 between any such basic plans and any such optional plans. The board 147 shall designate those plans which are basic and those plans which are 148 optional for the purpose of determining such cost and the amount to be 149 charged or withheld from benefit payments for such plans. The 150 surviving spouse of a member, or a disabled dependent of a member if 151 there is no surviving spouse, shall not be ineligible for participation in 152 any such plan solely because such surviving spouse or disabled 153 dependent is not receiving benefits from the system. With respect to any 154 person participating in any such plan, the state shall appropriate to the 155 board one-third of the cost of such basic plan or plans, or one-third of 156 the cost of the rate in effect during the fiscal year ending June 30, 1998, 157 whichever is greater. 158 (b) (1) Any member who (A) is receiving retirement benefits or a 159 disability allowance from the system, the spouse or surviving spouse of 160 such member, or a disabled dependent of such member if there is no 161 spouse or surviving spouse, and who is not participating in Medicare 162 Part A hospital insurance and Medicare Part B medical insurance, and 163 (B) meets the state's eligibility criteria for health insurance or is eligible 164 to participate in the group health insurance plan offered by such 165 member's last employing board of education, may fully participate in 166 any or all group health insurance plans maintained for active teachers 167 by such member's last employing board of education, or by the state in 168 the case of a member who was employed by the state, upon payment to 169 such board of education or to the state, as applicable, by such member, 170 spouse, surviving spouse or disabled dependent, of the premium 171 charged for the member's form of coverage. Such premium shall be no 172 greater than that charged for the same form of coverage for active 173 teachers. 174 (2) The member's spouse, surviving spouse or disabled dependent 175 shall not be ineligible for participation in any such plan solely because 176 such spouse, surviving spouse or disabled dependent is not receiving 177 benefits from the system. No person shall be ineligible for participation 178 Raised Bill No. 1525 LCO No. 3568 7 of 11 in such plans for failure to enroll in such plans at the time the member's 179 retirement benefit or disability allowance became effective. 180 (3) (A) Nothing in this subsection shall be construed to impair or alter 181 the provisions of any collective bargaining agreement relating to the 182 payment by a board of education of group health insurance premiums 183 on behalf of any member receiving benefits from the system. No 184 collective bargaining agreement shall provide for a subsidy for any 185 purpose other than to reduce costs for the benefit of a member, spouse, 186 surviving spouse or disabled member. 187 (B) Prior to the cancellation of coverage for any member, spouse, 188 surviving spouse or disabled dependent for failure to pay the required 189 premiums or cost due, the board of education or the state, if applicable, 190 shall notify the Teachers' Retirement Board of its intention to cancel such 191 coverage at least thirty days prior to the date of cancellation. Absent any 192 contractual provisions to the contrary, the payments made pursuant to 193 subsection (c) of this section shall be first applied to any cost borne by 194 the member, spouse, surviving spouse or disabled dependent 195 participating in any such plan. 196 (4) As used in this subsection, "last employing board of education" 197 means the board of education by which such member was employed 198 when such member filed his or her initial application for retirement, and 199 "health insurance plans" means hospital, medical, major medical, dental, 200 prescription drug or auditory benefit plans that are available to active 201 teachers. 202 (c) (1) On and after July 1, 2022, the board shall pay a subsidy of two 203 hundred twenty dollars, to the board of education or to the state, if 204 applicable, on behalf of any member who is receiving retirement 205 benefits or a disability allowance from the system, the spouse of such 206 member, the surviving spouse of such member, or a disabled dependent 207 of such member if there is no spouse or surviving spouse, who is 208 participating in a health insurance plan maintained by a board of 209 Raised Bill No. 1525 LCO No. 3568 8 of 11 education or by the state, if applicable. Such payment shall not exceed 210 the actual cost of such insurance. 211 (2) With respect to any person participating in any such plan 212 pursuant to subsection (b) of this section, the state shall appropriate to 213 the board one-third of the cost of the subsidy, except that, for the fiscal 214 year ending June 30, 2013, the state shall appropriate twenty-five per 215 cent of the cost of the subsidy. On and after July 1, 2018, for the fiscal 216 year ending June 30, 2019, and for each fiscal year thereafter, fifty per 217 cent of the total amount appropriated by the state in each such fiscal 218 year for the state's share of the cost of such subsidies shall be paid to the 219 board on or before July first of such fiscal year, and the remaining fifty 220 per cent of such total amount shall be paid to the board on or before 221 December first of such fiscal year. 222 (3) No payment to a board of education pursuant to this subsection 223 may be used to reduce the amount of any premium payment on behalf 224 of any such member, spouse, surviving spouse, or disabled dependent, 225 made by such board pursuant to any agreement in effect on July 1, 1990. 226 On and after July 1, 2022, the board shall pay a subsidy of four hundred 227 forty dollars per month on behalf of the member, spouse or the 228 surviving spouse of such member who: (A) Has attained the normal 229 retirement age to participate in Medicare, (B) is not eligible for Medicare 230 Part A without cost, and (C) contributes at least four hundred forty 231 dollars per month towards his or her medical and prescription drug 232 plan provided by the board of education. 233 (d) The Treasurer shall establish a separate retired teachers' health 234 insurance premium account within the Teachers' Retirement Fund. 235 Commencing July 1, 1989, and annually thereafter all health benefit plan 236 contributions withheld under this chapter in excess of five hundred 237 thousand dollars shall, upon deposit in the Teachers' Retirement Fund, 238 be credited to such account. Interest derived from the investment of 239 funds in the account shall be credited to the account. Funds in the 240 account shall be used for (1) payments to boards of education pursuant 241 Raised Bill No. 1525 LCO No. 3568 9 of 11 to subsection (c) of this section and for payment of premiums on behalf 242 of members, spouses of members, surviving spouses of members or 243 disabled dependents of members participating in one or more health 244 insurance plans pursuant to subsection (a) of this section in an amount 245 equal to the difference between the amount paid pursuant to subsection 246 (a) of this section and the amount paid pursuant to subsection (c) of this 247 section, and (2) payments for professional fees associated with the 248 administration of the health benefit plans offered pursuant to this 249 section. If, during any fiscal year, there are insufficient funds in the 250 account for the purposes of all such payments, the General Assembly 251 shall appropriate sufficient funds to the account for such purpose. 252 (e) (1) Not later than the first business day of [February, May, August 253 and November] March, April, September and December of each year, 254 each employer shall submit to the board, in a format required by the 255 board, any information the board determines to be necessary concerning 256 additions, deletions and premium changes for the health insurance 257 subsidy program described in subsection (c) of this section. Any report 258 received by the board after the due date shall be processed in the 259 following quarterly cycle. An employer's failure to timely submit a 260 quarterly report shall result in a delay of the subsidy for that quarter 261 and the board shall pay the subsidy as a retroactive subsidy, as provided 262 in subdivision (2) of this subsection. 263 (2) Retroactive subsidy payments shall be limited to six months prior 264 to the first day of the month in which the board receives an untimely 265 report that includes newly eligible retired members or dependents. The 266 board shall pay the subsidy retroactively to the effective date of the 267 disability, provided any eligible members or dependents are added to 268 the report not later than the first quarter following the board's approval 269 of the disability and the member's disability allowance is initiated 270 within four months of board approval. The employer shall hold any 271 member or dependent harmless for any costs associated with, arising 272 from or out of the loss of the benefit of the subsidy as a result of the 273 employer's untimely or inaccurate filing of the quarterly report. 274 Raised Bill No. 1525 LCO No. 3568 10 of 11 Sec. 7. Subsection (c) of section 10-183aa of the general statutes is 275 repealed and the following is substituted in lieu thereof (Effective July 1, 276 2025): 277 (c) The board shall designate a medical committee to be composed of 278 no more than five physicians. If required, other physicians may be 279 employed to report on special cases. Such medical committee shall 280 review each eligible application for a disability allowance and shall 281 make findings and recommendations in writing to the board. The 282 medical committee shall perform additional examinations or case 283 reviews as deemed necessary by the board. Members of such committee 284 shall receive compensation for their services at a rate to be determined 285 by the board. 286 Sec. 8. Subsection (b) of section 4d-80 of the general statutes is 287 repealed and the following is substituted in lieu thereof (Effective July 1, 288 2025): 289 (b) The Governor shall appoint a chairperson from among the 290 members of the commission or their designees. Subject to the provisions 291 of chapter 67, and within available appropriations, the commission may 292 appoint an executive director and such other employees as may be 293 necessary for the discharge of the duties of the commission. 294 Notwithstanding any provision of the general statutes, the executive 295 director shall have the option to elect participation in the state 296 employees retirement system, or the alternate retirement program 297 established for eligible employees in higher education. [or the teachers' 298 retirement system.] 299 This act shall take effect as follows and shall amend the following sections: Section 1 from passage 10-183b(15) Sec. 2 from passage 10-183b(21) Sec. 3 July 1, 2025 10-183g(g) Sec. 4 July 1, 2025 10-183h(c) Raised Bill No. 1525 LCO No. 3568 11 of 11 Sec. 5 July 1, 2025 10-183l(a) Sec. 6 July 1, 2025 10-183t Sec. 7 July 1, 2025 10-183aa(c) Sec. 8 July 1, 2025 4d-80(b) Statement of Purpose: To implement the Teachers' Retirement Board's recommendations for changes to the teachers' retirement system statutes. [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.]