Connecticut 2025 Regular Session

Connecticut Senate Bill SB01525 Compare Versions

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55 General Assembly Raised Bill No. 1525
66 January Session, 2025
77 LCO No. 3568
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1010 Referred to Committee on APPROPRIATIONS
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1313 Introduced by:
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1919 AN ACT CONCERNING THE TEACHERS' RETIREMENT BOARD'S
2020 RECOMMENDATIONS FOR CHANGES TO THE TEACHERS'
2121 RETIREMENT SYSTEM STATUTES.
2222 Be it enacted by the Senate and House of Representatives in General
2323 Assembly convened:
2424
2525 Section 1. Subdivision (15) of section 10-183b of the general statutes 1
2626 is repealed and the following is substituted in lieu thereof (Effective from 2
2727 passage): 3
2828 (15) "Employer" means an elected school committee, a board of 4
2929 education, the State Board of Education, the Office of Early Childhood, 5
3030 the Technical Education and Career System, the Board of Regents for 6
3131 Higher Education or any of the constituent units, the governing body of 7
3232 the Children's Center and its successors for members hired before July 8
3333 1, 2025, The University of Connecticut Board of Trustees, the E. O. Smith 9
3434 School, or any other activity, institution or school employing members, 10
3535 except "employer" shall not include the State Education Resource Center 11
3636 for members hired on or after July 1, 2025. 12
3737 Sec. 2. Subdivision (21) of section 10-183b of the general statutes is 13
3838 repealed and the following is substituted in lieu thereof (Effective from 14
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4545 passage): 15
4646 (21) "Public school" means any day school conducted within or 16
4747 without this state under the orders and superintendence of a duly 17
4848 elected school committee, a board of education, the State Board of 18
4949 Education, the Office of Early Childhood, the Board of Regents for 19
5050 Higher Education, or any of its constituent units, The University of 20
5151 Connecticut Board of Trustees, the board of governors or any of its 21
5252 constituent units, the Technical Education and Career System, the E. O. 22
5353 Smith School, the Children's Center and its successors for members 23
5454 hired before July 1, 2025, the State Education Resource Center 24
5555 [established pursuant to section 10-4q of the 2014 supplement to the 25
5656 general statutes, revision of 1958, revised to January 1, 2013, the State 26
5757 Education Resource Center established pursuant to section 10-357a] for 27
5858 members hired before July 1, 2025, joint activities of boards of education 28
5959 authorized by subsection (b) of section 10-158a and (A) any institution 29
6060 supported by the state at which teachers are employed or any 30
6161 incorporated secondary school not under the orders and 31
6262 superintendence of a duly elected school committee or board of 32
6363 education but located in a town not maintaining a high school and 33
6464 providing free tuition to pupils of the town in which it is located, and 34
6565 which has been approved by the State Board of Education under the 35
6666 provisions of part II of chapter 164, or (B) on and after July 1, 2023, any 36
6767 school operated by an interdistrict magnet school operator described in 37
6868 section 10-264s, provided such institution, secondary school or school is 38
6969 classified as a public school by the retirement board. 39
7070 Sec. 3. Subsection (g) of section 10-183g of the general statutes is 40
7171 repealed and the following is substituted in lieu thereof (Effective July 1, 41
7272 2025): 42
7373 (g) A member's complete formal application for retirement, if sent by 43
7474 mail, shall be deemed to have been filed with the board on the date such 44
7575 application is postmarked. Such application for retirement shall be 45
7676 irrevocable on the date the member retires. No benefit computed under 46
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8383 subsections (a) to (d), inclusive, of this section and under subsections (a) 47
8484 to (g), inclusive, of section 10-183aa, as amended by this act, shall 48
8585 become effective until a member eligible for retirement under section 49
8686 10-183f files with the board a complete formal application for retirement 50
8787 and terminates service with such member's employer. Such benefit shall 51
8888 accrue from the first day of the month following the calendar month in 52
8989 which such application is filed and payment of such benefit in equal 53
9090 monthly installments shall commence on the last day of the month in 54
9191 which such benefit begins to accrue. The initial payment of such benefit 55
9292 may be made not later than three months following the effective date of 56
9393 retirement, provided such payment shall be retroactive to such effective 57
9494 date. Upon a finding that extenuating circumstances relating to the 58
9595 health of a member caused a delay in the filing of the member's complete 59
9696 formal application, and such application is filed on or after July 1, 1986, 60
9797 the board may deem such application to have been filed up to three 61
9898 months earlier than the actual date of the filing. Upon a finding that 62
9999 extenuating circumstances related to the health of a member caused a 63
100100 delay in the filing of an election pursuant to subsection (g) of section 10-64
101101 183aa, and such election is filed on or after July 1, 1986, the board may 65
102102 deem such election to have been filed as of the date such member's 66
103103 benefits would otherwise have been converted to a normal retirement 67
104104 benefit under this section. 68
105105 Sec. 4. Subsection (c) of section 10-183h of the general statutes is 69
106106 repealed and the following is substituted in lieu thereof (Effective July 1, 70
107107 2025): 71
108108 (c) In lieu of a basic survivor's benefit and a lump sum death benefit, 72
109109 a [sole] survivor who has attained age eighteen, and is the member's 73
110110 designated beneficiary may elect to receive an amount equal to such 74
111111 member's accumulated contributions together with credited interest. In 75
112112 the absence of a designation, the member's surviving spouse or, if none, 76
113113 the member's surviving children in equal shares or, if none, the 77
114114 member's estate shall be entitled to the lump sum payment of the 78
115115 accumulated contributions with credited interest. 79
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122122 Sec. 5. Subsection (a) of section 10-183l of the general statutes is 80
123123 repealed and the following is substituted in lieu thereof (Effective July 1, 81
124124 2025): 82
125125 (a) (1) On and after July 1, 1991, the management of the system shall 83
126126 continue to be vested in the Teachers' Retirement Board, whose 84
127127 members shall include the Treasurer, the Secretary of the Office of Policy 85
128128 and Management and the Commissioner of Education, or their 86
129129 designees, who shall be voting members of the board, ex officio. (2) On 87
130130 or before June 15, 1985, and quadrennially thereafter, the members of 88
131131 the system shall elect from their number, in a manner prescribed by said 89
132132 board, two persons to serve as members of said board for terms of four 90
133133 years beginning July first following such election. Both of such persons 91
134134 shall be active teachers who shall be nominated by the members of the 92
135135 system who are not retired and elected by all the members of the system. 93
136136 On or before July 1, 1991, and quadrennially thereafter, the members of 94
137137 the system shall elect from their number, in a manner prescribed by said 95
138138 board, three persons to serve as members of said board for terms of four 96
139139 years beginning July first following such election. Two of such persons 97
140140 shall be retired teachers who shall be nominated by the retired members 98
141141 of the system and elected by all the members of the system and one shall 99
142142 be an active teacher who shall be nominated by the members of the 100
143143 system who are not retired and elected by all the members of the system. 101
144144 (3) On or before July 1, 2011, and quadrennially thereafter, the members 102
145145 of the system shall elect from their number, in a manner prescribed by 103
146146 said board, one person to serve as a member of said board for a term of 104
147147 four years beginning July first following such election. Such person shall 105
148148 be an active teacher who shall be nominated by the members of the 106
149149 system who are not retired, elected by all the members of the system 107
150150 and a member of an exclusive representative of a teachers' bargaining 108
151151 unit that is not represented by the members of the board elected under 109
152152 subdivision (2) of this subsection. (4) On or before October 1, 2023, and 110
153153 in July quadrennially thereafter, the retired members of the system shall 111
154154 elect from their number, in a manner prescribed by said board, two 112
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161161 persons to serve as members of said board for a term of four years 113
162162 beginning October first following such election. Both of such persons 114
163163 shall be (A) retired teachers who are receiving a pension benefit from 115
164164 the system, and (B) nominated and elected by the members of the 116
165165 system who are retired. (5) If a vacancy occurs in the positions filled by 117
166166 the members of the system who are not retired, said board shall elect a 118
167167 member of the system who is not retired to fill the unexpired portion of 119
168168 the term. If a vacancy occurs in the positions filled by the retired 120
169169 members of the system, said board shall elect a retired member of the 121
170170 system to fill the unexpired portion of the term. The Governor shall 122
171171 appoint five public members to said board in accordance with the 123
172172 provisions of section 4-9a, one of whom shall be the mayor, first 124
173173 selectman or chief elected official of a municipality. On and after 125
174174 October 31, 2017, the Governor shall fill the next vacant position on the 126
175175 board that is appointed by the Governor with a person who is the 127
176176 mayor, first selectman or chief elected official of a municipality. The 128
177177 members of the board shall serve without compensation, but shall be 129
178178 reimbursed for any expenditures or loss of salary or wages which they 130
179179 incur through service on the board. A majority of the membership of the 131
180180 board shall constitute a quorum for the transaction of any business. 132
181181 Sec. 6. Section 10-183t of the general statutes is repealed and the 133
182182 following is substituted in lieu thereof (Effective July 1, 2025): 134
183183 (a) The board shall offer one or more health benefit plans to: Any 135
184184 member receiving retirement benefits or a disability allowance from the 136
185185 system; the spouse or surviving spouse of such member, and a disabled 137
186186 dependent of such member if there is no spouse or surviving spouse, 138
187187 provided such member, spouse, surviving spouse, or disabled 139
188188 dependent is participating in Medicare Part A hospital insurance and 140
189189 Medicare Part B medical insurance. The board may offer one or more 141
190190 basic plans, the cost of which to any such member, spouse, surviving 142
191191 spouse or disabled dependent shall be one-third of the basic plan's 143
192192 premium equivalent, and one or more optional plans, provided such 144
193193 member, spouse, surviving spouse or disabled dependent shall pay one-145
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200200 third of the basic plan's premium equivalent plus the difference in cost 146
201201 between any such basic plans and any such optional plans. The board 147
202202 shall designate those plans which are basic and those plans which are 148
203203 optional for the purpose of determining such cost and the amount to be 149
204204 charged or withheld from benefit payments for such plans. The 150
205205 surviving spouse of a member, or a disabled dependent of a member if 151
206206 there is no surviving spouse, shall not be ineligible for participation in 152
207207 any such plan solely because such surviving spouse or disabled 153
208208 dependent is not receiving benefits from the system. With respect to any 154
209209 person participating in any such plan, the state shall appropriate to the 155
210210 board one-third of the cost of such basic plan or plans, or one-third of 156
211211 the cost of the rate in effect during the fiscal year ending June 30, 1998, 157
212212 whichever is greater. 158
213213 (b) (1) Any member who (A) is receiving retirement benefits or a 159
214214 disability allowance from the system, the spouse or surviving spouse of 160
215215 such member, or a disabled dependent of such member if there is no 161
216216 spouse or surviving spouse, and who is not participating in Medicare 162
217217 Part A hospital insurance and Medicare Part B medical insurance, and 163
218218 (B) meets the state's eligibility criteria for health insurance or is eligible 164
219219 to participate in the group health insurance plan offered by such 165
220220 member's last employing board of education, may fully participate in 166
221221 any or all group health insurance plans maintained for active teachers 167
222222 by such member's last employing board of education, or by the state in 168
223223 the case of a member who was employed by the state, upon payment to 169
224224 such board of education or to the state, as applicable, by such member, 170
225225 spouse, surviving spouse or disabled dependent, of the premium 171
226226 charged for the member's form of coverage. Such premium shall be no 172
227227 greater than that charged for the same form of coverage for active 173
228228 teachers. 174
229229 (2) The member's spouse, surviving spouse or disabled dependent 175
230230 shall not be ineligible for participation in any such plan solely because 176
231231 such spouse, surviving spouse or disabled dependent is not receiving 177
232232 benefits from the system. No person shall be ineligible for participation 178
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239239 in such plans for failure to enroll in such plans at the time the member's 179
240240 retirement benefit or disability allowance became effective. 180
241241 (3) (A) Nothing in this subsection shall be construed to impair or alter 181
242242 the provisions of any collective bargaining agreement relating to the 182
243243 payment by a board of education of group health insurance premiums 183
244244 on behalf of any member receiving benefits from the system. No 184
245245 collective bargaining agreement shall provide for a subsidy for any 185
246246 purpose other than to reduce costs for the benefit of a member, spouse, 186
247247 surviving spouse or disabled member. 187
248248 (B) Prior to the cancellation of coverage for any member, spouse, 188
249249 surviving spouse or disabled dependent for failure to pay the required 189
250250 premiums or cost due, the board of education or the state, if applicable, 190
251251 shall notify the Teachers' Retirement Board of its intention to cancel such 191
252252 coverage at least thirty days prior to the date of cancellation. Absent any 192
253253 contractual provisions to the contrary, the payments made pursuant to 193
254254 subsection (c) of this section shall be first applied to any cost borne by 194
255255 the member, spouse, surviving spouse or disabled dependent 195
256256 participating in any such plan. 196
257257 (4) As used in this subsection, "last employing board of education" 197
258258 means the board of education by which such member was employed 198
259259 when such member filed his or her initial application for retirement, and 199
260260 "health insurance plans" means hospital, medical, major medical, dental, 200
261261 prescription drug or auditory benefit plans that are available to active 201
262262 teachers. 202
263263 (c) (1) On and after July 1, 2022, the board shall pay a subsidy of two 203
264264 hundred twenty dollars, to the board of education or to the state, if 204
265265 applicable, on behalf of any member who is receiving retirement 205
266266 benefits or a disability allowance from the system, the spouse of such 206
267267 member, the surviving spouse of such member, or a disabled dependent 207
268268 of such member if there is no spouse or surviving spouse, who is 208
269269 participating in a health insurance plan maintained by a board of 209
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276276 education or by the state, if applicable. Such payment shall not exceed 210
277277 the actual cost of such insurance. 211
278278 (2) With respect to any person participating in any such plan 212
279279 pursuant to subsection (b) of this section, the state shall appropriate to 213
280280 the board one-third of the cost of the subsidy, except that, for the fiscal 214
281281 year ending June 30, 2013, the state shall appropriate twenty-five per 215
282282 cent of the cost of the subsidy. On and after July 1, 2018, for the fiscal 216
283283 year ending June 30, 2019, and for each fiscal year thereafter, fifty per 217
284284 cent of the total amount appropriated by the state in each such fiscal 218
285285 year for the state's share of the cost of such subsidies shall be paid to the 219
286286 board on or before July first of such fiscal year, and the remaining fifty 220
287287 per cent of such total amount shall be paid to the board on or before 221
288288 December first of such fiscal year. 222
289289 (3) No payment to a board of education pursuant to this subsection 223
290290 may be used to reduce the amount of any premium payment on behalf 224
291291 of any such member, spouse, surviving spouse, or disabled dependent, 225
292292 made by such board pursuant to any agreement in effect on July 1, 1990. 226
293293 On and after July 1, 2022, the board shall pay a subsidy of four hundred 227
294294 forty dollars per month on behalf of the member, spouse or the 228
295295 surviving spouse of such member who: (A) Has attained the normal 229
296296 retirement age to participate in Medicare, (B) is not eligible for Medicare 230
297297 Part A without cost, and (C) contributes at least four hundred forty 231
298298 dollars per month towards his or her medical and prescription drug 232
299299 plan provided by the board of education. 233
300300 (d) The Treasurer shall establish a separate retired teachers' health 234
301301 insurance premium account within the Teachers' Retirement Fund. 235
302302 Commencing July 1, 1989, and annually thereafter all health benefit plan 236
303303 contributions withheld under this chapter in excess of five hundred 237
304304 thousand dollars shall, upon deposit in the Teachers' Retirement Fund, 238
305305 be credited to such account. Interest derived from the investment of 239
306306 funds in the account shall be credited to the account. Funds in the 240
307307 account shall be used for (1) payments to boards of education pursuant 241
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314314 to subsection (c) of this section and for payment of premiums on behalf 242
315315 of members, spouses of members, surviving spouses of members or 243
316316 disabled dependents of members participating in one or more health 244
317317 insurance plans pursuant to subsection (a) of this section in an amount 245
318318 equal to the difference between the amount paid pursuant to subsection 246
319319 (a) of this section and the amount paid pursuant to subsection (c) of this 247
320320 section, and (2) payments for professional fees associated with the 248
321321 administration of the health benefit plans offered pursuant to this 249
322322 section. If, during any fiscal year, there are insufficient funds in the 250
323323 account for the purposes of all such payments, the General Assembly 251
324324 shall appropriate sufficient funds to the account for such purpose. 252
325325 (e) (1) Not later than the first business day of [February, May, August 253
326326 and November] March, April, September and December of each year, 254
327327 each employer shall submit to the board, in a format required by the 255
328328 board, any information the board determines to be necessary concerning 256
329329 additions, deletions and premium changes for the health insurance 257
330330 subsidy program described in subsection (c) of this section. Any report 258
331331 received by the board after the due date shall be processed in the 259
332332 following quarterly cycle. An employer's failure to timely submit a 260
333333 quarterly report shall result in a delay of the subsidy for that quarter 261
334334 and the board shall pay the subsidy as a retroactive subsidy, as provided 262
335335 in subdivision (2) of this subsection. 263
336336 (2) Retroactive subsidy payments shall be limited to six months prior 264
337337 to the first day of the month in which the board receives an untimely 265
338338 report that includes newly eligible retired members or dependents. The 266
339339 board shall pay the subsidy retroactively to the effective date of the 267
340340 disability, provided any eligible members or dependents are added to 268
341341 the report not later than the first quarter following the board's approval 269
342342 of the disability and the member's disability allowance is initiated 270
343343 within four months of board approval. The employer shall hold any 271
344344 member or dependent harmless for any costs associated with, arising 272
345345 from or out of the loss of the benefit of the subsidy as a result of the 273
346346 employer's untimely or inaccurate filing of the quarterly report. 274
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353353 Sec. 7. Subsection (c) of section 10-183aa of the general statutes is 275
354354 repealed and the following is substituted in lieu thereof (Effective July 1, 276
355355 2025): 277
356356 (c) The board shall designate a medical committee to be composed of 278
357357 no more than five physicians. If required, other physicians may be 279
358358 employed to report on special cases. Such medical committee shall 280
359359 review each eligible application for a disability allowance and shall 281
360360 make findings and recommendations in writing to the board. The 282
361361 medical committee shall perform additional examinations or case 283
362362 reviews as deemed necessary by the board. Members of such committee 284
363363 shall receive compensation for their services at a rate to be determined 285
364364 by the board. 286
365365 Sec. 8. Subsection (b) of section 4d-80 of the general statutes is 287
366366 repealed and the following is substituted in lieu thereof (Effective July 1, 288
367367 2025): 289
368368 (b) The Governor shall appoint a chairperson from among the 290
369369 members of the commission or their designees. Subject to the provisions 291
370370 of chapter 67, and within available appropriations, the commission may 292
371371 appoint an executive director and such other employees as may be 293
372372 necessary for the discharge of the duties of the commission. 294
373373 Notwithstanding any provision of the general statutes, the executive 295
374374 director shall have the option to elect participation in the state 296
375375 employees retirement system, or the alternate retirement program 297
376376 established for eligible employees in higher education. [or the teachers' 298
377377 retirement system.] 299
378378 This act shall take effect as follows and shall amend the following
379379 sections:
380380
381381 Section 1 from passage 10-183b(15)
382382 Sec. 2 from passage 10-183b(21)
383383 Sec. 3 July 1, 2025 10-183g(g)
384384 Sec. 4 July 1, 2025 10-183h(c)
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391391 Sec. 5 July 1, 2025 10-183l(a)
392392 Sec. 6 July 1, 2025 10-183t
393393 Sec. 7 July 1, 2025 10-183aa(c)
394394 Sec. 8 July 1, 2025 4d-80(b)
395395
396396 Statement of Purpose:
397397 To implement the Teachers' Retirement Board's recommendations for
398398 changes to the teachers' retirement system statutes.
399399 [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
400400 that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
401401 underlined.]
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