SB 396 — AN ACT CONCERNING REVISIONS TO THE TEACHERS' RETIREMENT SYSTEM STATUTES.

(A) [any] Person, including, but not limited to, a teacher, permanent substitute teacher, principal, assistant principal, supervisor, assistant superintendent or superintendent who is employed by [the] a public [schools] school in a professional capacity while possessing a certificate or permit, except a school business administration endorsement, 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 insSB396 section/ 10-183qq;File No.

651 8 sSB396 File No.

651 in section 10-183qq;

[,] (D) [a] member of the professional staff [of] employed byin an educational role at 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, or the Technical Education and Career System;

(E) faculty member employed by The University of Connecticut;Connecticut in an educational role;

and [(E)][(E) (F)a [a member of the]the staff of] (F) staff member ofemployed in an educational role at 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, hiredemployed beforein Julya 1,professional 2022capacity andwhile employedpossessing in a professionalcertificate roleor andpermit engagedissued inby anthe educationalState capacityBoard LCOof No.Education, provided such staff member was hired prior to July 1, 2022.

708A 9"permanent ofsubstitute 45teacher" Raisedis Bill[one] No.396a whileperson possessingwho aserves certificateas or[such permitfor issuedat byleast ten months during any school year] a substitute teacher in the Statesame Boardassignment offor Education.an entire school year.

[A "permanent substitute teacher" is one who serves as such for at least ten months during any school year.] "Permanent substitute teacher" means any teacher who is employed as a substitute in the same assignment for the entire duration of a school year.

[(29)]sSB396 (31)/ "LimitationFile year"No. means the twelve-month period beginning each July first and ending each June thirtieth.

651 9 sSB396 File No.

651 [(29)] (31) "Limitation year" means the twelve-month period beginning each July first and ending each June thirtieth.

On or after a member vests in the system by becoming eligible to receive a retirement benefit pursuant to section 10-183f, or accumulates ten years of credited service in the system, as defined in subsection (a) of section 10-183e, as amended by this act, whichever is later, the member's benefit under sections 10-183e, as amended by this act, 10-183f, 10-183g, as amended by this act, 10-183h, as amended by this act, 10-183j, as amended by this act, and 10-183aa, as amended by this act, is contractual in nature and no public or special act of the LCOGeneral No.Assembly shall diminish such benefit, provided this section shall apply only to an active member who is vested on October 1, 2003, or to a member who vests or accumulates ten years of credited service on or after October 1, 2003, and shall apply to the member's benefit in existence on October 1, 2003, or to the member's benefit in existence on the date the member vests or accumulates ten years of credited service, respectively, whichever is later.

708 10 of 45 Raised Bill No.396 General Assembly shall diminish such benefit, provided this section shall apply only to an active member who is vested on October 1, 2003, or to a member who vests or accumulates ten years of credited service on or after October 1, 2003, and shall apply to the member's benefit in existence on October 1, 2003, or to the member's benefit in existence on the date the member vests or accumulates ten years of credited service, respectively, whichever is later.

A membersSB396 may/ notFile accumulateNo. more than one year of credited service during any school year.

651 10 sSB396 File No.

651 member may not accumulate more than one year of credited service during any school year.

A member may not accumulate more than one year of credited service during any school year] and (C) the member makes the mandatory contribution for eachsuch month ofis servicepaid. as a teacher.

(b) Any member may purchase, as provided in subsection (c) of this section, additional credited service, but not to exceed an aggregate of one year in the case of service described in subdivision (2) of this subsection for each two years of active full-time service as a Connecticut teacher;andnottoexceedanaggregateofoneyearinthecaseofabsence described in subdivision (8) of this subsection for each five years of LCOactive No.full-time service as a Connecticut teacher, provided if any such absence exceeds thirty consecutive school months, such additional credited service shall be limited to thirty school months;

708 11 of 45 Raised Bill No.396 active full-time service as a Connecticut teacher, provided if any such absence exceeds thirty consecutive school months, such additional credited service shall be limited to thirty school months;

(3) Service in the armed forces of the United States in time of war, as definedsSB396 in/ sectionFile 27-103,No. or service in said armed forces during the period beginning October 27, 1953, and ending January 31, 1955;

651 11 sSB396 File No.

651 defined in section 27-103, or service in said armed forces during the period beginning October 27, 1953, and ending January 31, 1955;

(9) Service as a teacher at the American School [at Hartford] for the Deaf, the Connecticut Institute for the Blind or the Newington LCOChildren's No.Hospital;

708 12 of 45 Raised Bill No.396 Children's Hospital;

(13)sSB396 Service/ inFile theNo. public schools of Connecticut as a member of the federal Teacher Corps, not to exceed two years;

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651 (13) Service in the public schools of Connecticut as a member of the federal Teacher Corps, not to exceed two years;

LCO(c) No.Credited service described in subdivisions (3), (8) and (10) of subsection (b) of this section shall be deemed to be service in the public schools of Connecticut.

708 13 of 45 Raised Bill No.396 (c) Credited service described in subdivisions (3), (8) and (10) of subsection (b) of this section shall be deemed to be service in the public schools of Connecticut.

[or (3) at the time benefits commence as provided under sections 10- 183g and 10-183jj.] Any purchase of such service shall be accomplished by the member paying to the board an amount determined on the basis of actuarial factors adopted by the board that reflect the present value of one-half of the full actuarial cost of the benefit increase that will be derived by the purchase of such service, except that in the case of purchase of service describedin subdivision(17)ofsubsection(b) of this section, or in the case of purchase of service described in subdivision (2) of said subsection (b) in excess of ten years, the present value of the full actuarialsSB396 cost./ File No.

651 13 sSB396 File No.

651 actuarial cost.

and (2) military service described in subdivision (3) of said subsection (b), any leave of absence described in subdivision (8) of said subsection (b) and substitute service described in LCOsubdivision No.(10) of said subsection (b) shall be used as if they were service in the public schools of Connecticut.

708 14 of 45 Raised Bill No.396 subdivision (10) of said subsection (b) shall be used as if they were service in the public schools of Connecticut.

In computing thelump sumdeathbenefit under section 10-183h, military service described in subdivision (3) of subsection (b) of this section and leaves of absence described in subdivision (8) of said subsection (b) shall be used as if they were service in the public schools of Connecticut.] [(f)]sSB396 (e)/ ForFile purposesNo. of computing benefit amounts under section 10- 183g, as amended by this act, whole months of credited service, including additional credited service, in excess of whole years shall be used in determining aggregate accumulations of credited service.

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651 [(f)] (e) For purposes of computing benefit amounts under section 10- 183g, as amended by this act, whole months of credited service, including additional credited service, in excess of whole years shall be used in determining aggregate accumulations of credited service.

If payment is made during such periods or at any time before retirement, such member shall receive credit for such service and shall be considered as serving as a [public school] teacher in the [state] the public schools of Connecticut for the purpose of computing length of service, and for the purpose of computing average annual salary, and LCOshall No.be considered by the retirement board as though such member were remaining in such member's latest teaching position.

708 15 of 45 Raised Bill No.396 shall be considered by the retirement board as though such member were remaining in such member's latest teaching position.

Average annual salary multiplied by (1) number of years of credited service [, excluding all additional credited service, except service described in subdivisions (3), (8) and (10) of subsection (b) of section 10- 183e,]sSB396 in/ theFile publicNo. schools of Connecticut multiplied by the applicable percentage based on age and service as determined from the table below, and (2) number of years of all additional credited service not used in subdivision (1) of this subsection multiplied by one per cent.

T1651 TABLE T2 AGE OF RETIREMENT T3 Years Of T4 Connecticut T5 Service 60 61 62 63 64 65 66 67 68 69 70 T6 10 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 T7 11 1.1 1.1 1.1 1.1 1.1 1.1 1.1 1.1 1.1 1.1 1.1 T8 12 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.2 T9 13 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 T10 14 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 T11 15 1.5sSB396 1.5File 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 LCO No.

708651 16183e,] of 45 Raised Bill No.396 T12 16 1.6 1.6 1.6 1.6 1.6 1.6 1.6 1.6 1.6 1.6 1.6 T13 17 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 T14 18 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8 T15 19 1.9 1.9 1.9 1.9 1.9 1.9 1.9 1.9 1.9 1.9 1.9 T16 20 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 (c) The early retirement benefit shall be computed in the samepublic mannerschools asof theConnecticut normalmultiplied retirementby benefit,the thenapplicable actuariallypercentage reduced,based on theage basisand ofservice earlyas retirementdetermined tables adopted from time to time by the board,table forbelow, eachand month(2) earlynumber retirementof precedesyears theof minimumall ageadditional atcredited whichservice thenot memberused couldin havesubdivision retired(1) withof athis normal retirement benefit pursuant to subsection (a)multiplied ofby sectionone 10-183f.per cent.

[SuchT1 minimumTABLE ageT2 shallAGE beOF suchRETIREMENT member'sT3 actualYears ageOf atT4 retirementConnecticut plusT5 theService lesser60 of61 (1)62 the63 difference64 between65 such66 age67 and68 age69 sixty,70 orT6 (2)10 the1.0 difference1.0 between1.0 thirty-five1.0 years1.0 and1.0 the1.0 sum1.0 of1.0 such1.0 member's1.0 yearsT7 of11 Connecticut1.1 public1.1 school1.1 service1.1 plus1.1 all1.1 purchased1.1 leaves1.1 of1.1 absence,1.1 military1.1 andT8 out-of-state12 public1.2 school1.2 service.]1.2 On1.2 and1.2 after1.2 July1.2 1,1.2 1999,1.2 any1.2 revisions1.2 toT9 the13 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 T10 14 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 T11 15 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 T12 16 1.6 1.6 1.6 1.6 1.6 1.6 1.6 1.6 1.6 1.6 1.6 T13 17 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 T14 18 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8 T15 19 1.9 1.9 1.9 1.9 1.9 1.9 1.9 1.9 1.9 1.9 1.9 T16 20 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 (c) The early retirement tablesbenefit shall be submittedcomputed toin the Officesame ofmanner Policyas andthe Managementnormal andretirement thebenefit, jointthen standingactuarially committeereduced, ofon the Generalbasis Assemblyof havingearly cognizanceretirement oftables mattersadopted relatingfrom time to appropriationstime andby the budgetsboard, offor stateeach agenciesmonth withinearly oneretirement monthprecedes ofthe theirminimum adoptionage byat which the board.member could have retired with a normal retirement benefit pursuant to subsection (a) of section 10-183f.

[Such minimum age shall be such member's actual age at retirement plus the lesser of (1) the difference between such age and age sixty, or (2) the difference between thirty-five years and the sum of such member's years of Connecticut public school service plus all purchased leaves of absence, military and out-of-state public school service.] On and after July 1, 1999, any revisions to the early retirement tables shall be submitted to the Office sSB396 / File No.

651 16 sSB396 File No.

651 of Policy and Management and the joint standing committee of the General Assembly having cognizance of matters relating to appropriations and the budgets of state agencies within one month of their adoption by the board.

LCO(e) No.Repealed by P.A.

708 17 of 45 Raised Bill No.396 (e) Repealed by P.A.

(f) [In] (1) Except as provided in subdivision (2) of this subsection, in addition to a retirement benefit computed under subsections (a) to (d), inclusive, of this section and a disability allowance under subsections (a) to (g), inclusive, of section 10-183aa, as amended by this act, a member shall receive a lump sum payment equal to the member's accumulated one per cent contributions withheld prior to July 1, 1989, and any voluntary contributions, with credited interest.

Such lump sum shall be paid not later than three months after (A) the effective date of retirement, or (B) the date the first payment of a disability allowance under section 10-183aa,10- 183aa, as amended by this act, is made, except the board may delay payment of such lump sum in extenuating circumstances.

(2)sSB396 In/ lieuFile ofNo. such lump sum, the member may elect to receive an actuarially equivalent annuity for life.

[Such651 lump17 sumsSB396 or]File PaymentNo. of such annuity shall [be paid, or commenced to be paid,] commence when the first payment of the [other] retirement benefit computed under subsections (a) to (d), inclusive, of this section or a disability allowance under subsections (a) to (g), inclusive, of section 10-183aa, as amended by this act, whichever is earlier, is made.

651 (2) In lieu of such lump sum, the member may elect to receive an actuarially equivalent annuity for life.

[Such lump sum or] Payment of such annuity shall [be paid, or commenced to be paid,] commence when the first payment of the [other] retirement benefit computed under subsections (a) to (d), inclusive, of this section or a disability allowance under subsections (a) to (g), inclusive, of section 10-183aa whichever is earlier, is made.

No benefit computed under subsections (a) to (d), inclusive, of this section and under subsections (a) to (g), inclusive, of section 10-183aa,10-183aa as amended by this act, shall become effective until [the end of the calendar month of the filing by the] a membereligibleforretirementundersection10-183ffileswiththeboardmember eligible for retirement under section 10-183f files with the board [of] a complete formal application for retirement and terminates service with such member's employer.

Such benefit shall accrue from the first LCOday No.of the month following [such] the calendar month in which such application is filed and payment of such benefit in equal monthly installments shall commence on the last day of the month in which such benefit begins to accrue.

708 18 of 45 Raised Bill No.396 day of the month following [such] the calendar month in which such application is filed and payment of such benefit in equal monthly installments shall commence on the last day of the month in which such benefit begins to accrue.

Upon a finding that extenuating circumstances relating to the healthofamembercausedadelayinthefilinghealth ofthemember'scompleteof a member caused a delay in the filing of the member's complete formal application, and such application is filed on or after July 1, 1986, the board may deem such application to have been filed up to three months earlier than the actual date of the filing.

Upon a finding that extenuating circumstances related to the health of a member caused a delay in the filing of an electionelectionpursuant pursuant to subsectionsubsection(g)of (g)section10-183aa,and of section 10- 183aa, as amended by this act, and such election isisfiledonor filed on or after July 1, 1986,1986,theboardmay thedeemsuchelectionto board may deem such election to have been filed as of the date such member's benefits would otherwise have been converted to a normal retirement [allowance, provided such member's disability allowance became effective on or before November 1, 1976, and such member attained the age of sixty on or after August 1, 1984] benefit under this section.

[allowance,sSB396 provided/ suchFile member'sNo. disability allowance became effective on or before November 1, 1976, and such member attained the age of sixty on or after August 1, 1984.] (h) (1) A benefit computed under subsections (a) to (d), inclusive, of this section and under subsections (a) to (g), inclusive, of section 10- 183aa, as amended by this act, shall continue until the death of the member.

651 18 sSB396 File No.

651 (h) (1) A benefit computed under subsections (a) to (d), inclusive, of this section and under subsections (a) to (g), inclusive, of section 10- 183aa shall continue until the death of the member.

LCO(3) No.For any member who accumulates ten years of credited service in the public schools of Connecticut on or after July 1, 2019, the member's designated beneficiary shall be paid on the death of the member a lump sum amount equal to the sum of such member's accumulated regular contributions, including any one per cent contributions withheld prior to July 1, 1989, and any voluntary contributions plus credited interest that had been accrued to the date benefits commenced, less an amount equal to fifty per cent of the aggregate benefits paid to such member [prior to] through the month of the member's death.

708 19 of 45 Raised Bill No.396 (3) For any member who accumulates ten years of credited service in the public schools of Connecticut on or after July 1, 2019, the member's designated beneficiary shall be paid on the death of the member a lump sum amount equal to the sum of such member's accumulated regular contributions, including any one per cent contributions withheld prior to July 1, 1989, and any voluntary contributions plus credited interest that had been accrued to the date benefits commenced, less an amount equal to fifty per cent of the aggregate benefits paid to such member [prior to] through the month of the member's death.

Such costsSB396 of/ livingFile allowanceNo. shall be computed on the basis of the retirement benefits to which such retired member or successor beneficiary was entitled on the last day of the preceding December or June except benefits based upon one per cent or voluntary contributions.

651 19 sSB396 File No.

651 cost of living allowance shall be computed on the basis of the retirement benefits to which such retired member or successor beneficiary was entitled on the last day of the preceding December or June except benefits based upon one per cent or voluntary contributions.

Any allowance waived shall be forever LCOforfeited. No.

708 20 of 45 Raised Bill No.396 forfeited.

[Such member's successor beneficiary means any person, other than such member, receiving benefits as the result of the election of a period certain option or a coparticipant option, including an election for such ansSB396 option/ byFile aNo. surviving spouse under subsection (d) of section 10- 183h.] The right to such allowance, or any portion thereof, may be waived by the person entitled thereto at any time.

651 20 sSB396 File No.

651 an option by a surviving spouse under subsection (d) of section 10- 183h.] The right to such allowance, or any portion thereof, may be waived by the person entitled thereto at any time.

The cost of living allowance shall be calculated by using the percentage cost of living adjustment granted by the Social Security LCOAdministration No.for the applicable year, computed on the basis of the retirement benefits to which such retired member or successor beneficiary was entitled on the last day of the preceding December or Juneexceptbenefitsbasedupononepercent orvoluntarycontributions, provided no cost of living allowance shall exceed six per cent and provided further, if the total return earned by the trustees on the market value of the pension assets for the preceding fiscal year is less than six and nine-tenths per cent, any cost of living allowance granted shall not exceed one and one-half per cent.

708 21 of 45 Raised Bill No.396 Administration for the applicable year, computed on the basis of the retirement benefits to which such retired member or successor beneficiary was entitled on the last day of the preceding December or Juneexceptbenefitsbasedupononepercent orvoluntarycontributions, provided no cost of living allowance shall exceed six per cent and provided further, if the total return earned by the trustees on the market value of the pension assets for the preceding fiscal year is less than six and nine-tenths per cent, any cost of living allowance granted shall not exceed one and one-half per cent.

The cost of living allowance shall be calculated by using the percentage cost of living adjustment granted by the Social Security Administration for the applicable year, computed on the basis of the retirement benefits to which such retired member or successor beneficiary was entitled on the last day of the preceding December or June, as applicable, except benefits based upon one per cent or voluntary contributions, provided (A) no cost of living allowance shall exceed five per cent, and (B) if the total return earned by the trustees on the market value of the pension assets for the preceding fiscalsSB396 year/ isFile lessNo. than six and nine-tenths per cent, any cost of living allowance granted shall not exceed one per cent, if such total return for the preceding fiscal year is greater than six and nine-tenths per cent but less than nine and nine-tenths per cent, any cost of living allowance granted shall not exceed three per cent, and if such return exceeds nine and nine-tenths per cent, any cost of living allowance granted shall not exceed five per cent.

651 21 sSB396 File No.

651 fiscal year is less than six and nine-tenths per cent, any cost of living allowance granted shall not exceed one per cent, if such total return for the preceding fiscal year is greater than six and nine-tenths per cent but less than nine and nine-tenths per cent, any cost of living allowance granted shall not exceed three per cent, and if such return exceeds nine and nine-tenths per cent, any cost of living allowance granted shall not exceed five per cent.

(o) On January 1, 1988, each eligible retired member who had LCOrendered No.at least twenty-five years of full-time service prior to normal retirement under the provisions of subsection (a) of section 10-183f, or such member's successor beneficiary, as defined in subsection (j) of this section, shall receive a single increase in retirement benefits provided under this chapter.

708 22 of 45 Raised Bill No.396 rendered at least twenty-five years of full-time service prior to normal retirement under the provisions of subsection (a) of section 10-183f, or such member's successor beneficiary, as defined in subsection (j) of this section, shall receive a single increase in retirement benefits provided under this chapter.

(q) On January 1, 1999, each eligible retired member who had renderedsSB396 at/ leastFile twenty-fiveNo. years of full-time service, or such member's successor beneficiary, as defined in subsection (j) of this section, shall receive a single increase in benefits provided under this chapter.

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651 rendered at least twenty-five years of full-time service, or such member's successor beneficiary, as defined in subsection (j) of this section, shall receive a single increase in benefits provided under this chapter.

(r) No retirement benefit payable under this chapter, including any cost of living allowance, shall exceed the maximum dollar limit in effect LCOunder No.Section 415(b) of the Internal Revenue Code for the applicable limitation year, as increased in subsequent years pursuant to Section 415(d) of the Internal Revenue Code.

708 23 of 45 Raised Bill No.396 under Section 415(b) of the Internal Revenue Code for the applicable limitation year, as increased in subsequent years pursuant to Section 415(d) of the Internal Revenue Code.

for a dependent parent if thereisnosurvivingspouseordependentchild;andforalegalguardian of any dependent child if there is no surviving spouse, dependent formersSB396 spouse/ orFile dependentNo. parent, and (3) three hundred dollars for each dependent child.

651 23 sSB396 File No.

651 former spouse or dependent parent, and (3) three hundred dollars for each dependent child.

LCONotwithstanding No.the provisions of this subsection, any such surviving spouse, dependent former spouse, dependent parent or legal guardian may waive the right to payment of the benefit under this subsection in order that a designated beneficiary who is the child of the deceased member may receive such member's accumulated contributions plus credited interest.

708 24 of 45 Raised Bill No.396 Notwithstanding the provisions of this subsection, any such surviving spouse, dependent former spouse, dependent parent or legal guardian may waive the right to payment of the benefit under this subsection in order that a designated beneficiary who is the child of the deceased member may receive such member's accumulated contributions plus credited interest.

(c)sSB396 In/ lieuFile ofNo. [such] a basic survivor's benefit and [such] a lump sum death benefit, a sole survivor who has attained age eighteen, and is the member's designated beneficiary may elect to receive an amount equal to such member's accumulated contributions together with credited interest.

[When651 a24 membersSB396 hasFile designated two or more beneficiaries, who have, at thetime ofsuchmember'sdeath,attainedage eighteen,the one entitled to basic survivor's benefits, if any, shall be deemed the sole survivor within the meaning of this subsection, provided, that all other designated beneficiaries relinquish all claim to any amounts that may be due them from the system.] LCO No.

708651 25(c) ofIn 45lieu Raisedof Bill[such] No.396a (d)basic Thesurvivor's survivingbenefit spouseand of[such] anya memberlump who,sum at the time of death wasbenefit, eligible for a retirementsole benefitsurvivor otherwho thanhas aattained disabilityage benefiteighteen, and hadis not filed a waiver of the coparticipant'smember's option,designated beneficiary may elect to receive (1) a monthly benefit for life equal to the benefit payable if a one hundred per cent coparticipant's option had been elected or (2) an amount equal to thesuch member's accumulated contributions together with credited interest.

[When a member has designated two or more beneficiaries, who have, at thetime ofsuchmember'sdeath,attainedage eighteen,the one entitled to basic survivor's benefits, if any, shall be deemed the sole survivor within the meaning of this subsection, provided, that all other designated beneficiaries relinquish all claim to any amounts that may be due them from the system.] (d) The surviving spouse of any member who, at the time of death was eligible for a retirement benefit other than a disability benefit and had not filed a waiver of the coparticipant's option, may elect to receive (1) a monthly benefit for life equal to the benefit payable if a one hundred per cent coparticipant's option had been elected or (2) an amount equal to the member's accumulated contributions with credited interest.

[(f)(f) Notwithstanding the provisions of subparagraph (B) of subdivision (23)[(23)] (25) of section 10-183b, as amended by this act, benefits payable under this section to a surviving spouse shall not be terminated because of remarriage if such surviving spouse has attained the age of sixty.]sixty. [(g)] (f) If a member who has filed an application for retirement dies prior to the effective date of retirement, such member's spouse, if such spouse is designated on such application as the sole beneficiary, may elect to receive either (1) the preretirement death benefits as set forth in this section, or (2) the benefit payment option selected by the deceased member on such retirement application.

(g) If a member who has filed an application for retirement dies prior to the effective date of retirement, such member's spouse, if such spouse is designated on such application as the sole beneficiary, may elect to receive either (1) the preretirement death benefits as set forth in this section, or (2) the benefit payment option selected by the deceased sSB396 / File No.

651 25 sSB396 File No.

651 member on such retirement application.

LCO(b) No.A member may elect the Plan N single life option.

708 26 of 45 Raised Bill No.396 (b) A member mayelecting electthisoptionshallreceive thebenefitsasdescribed Planin Nsection10-183g, singleas lifeamended option.by this act.

A[(b) memberA] electing(c) thisoptionshallreceiveA benefitsasdescribedinmember section10-183g,may aselect amendedthePlan byC thisperiod act.certainoption.

(c) A member may elect the Plan C period certain option.

[(c)][(c) A] (d) (1) A member may elect the Plan D coparticipant's option.

[maysSB396 be/ electedFile inNo. which the member receives] A member electing this option shall receive an actuarially reduced benefit as [provided] described in subdivision (2) of this subsection [(d) of this section] and, upon such member's death, one-third, one-half, two-thirds, three- fourths or all of such [amount is] benefit shall be paid to such member's designated beneficiary for life.

651 26 sSB396 File No.

651 [may be elected in which the member receives] A member electing this option shall receive an actuarially reduced benefit as [provided in] described in subdivision (2) of this subsection [(d) of this section] and, upon such member's death, one-third, one-half, two-thirds, three- fourths or all of such [amount is] benefit shall be paid to such member's designated beneficiary for life.

With respect to any benefits which become effective on or after January 1, 2001, if twenty-five per cent of the aggregate benefits paid to the member or such member's designated beneficiary are, upon the death LCOofsuchmemberorsuchdesignatedbeneficiary,lessthansuchmember's No.accumulated contributions plus credited interest, the estate of such member or such designated beneficiary, as appropriate, shall be paid a lump sum amount equal to the difference between such aggregate benefitspaidandsuch accumulatedcontributionspluscreditedinterest.

708 27 of 45 Raised Bill No.396 ofsuchmemberorsuchdesignatedbeneficiary,lessthansuchmember's accumulated contributions plus credited interest, the estate of such member or such designated beneficiary, as appropriate, shall be paid a lump sum amount equal to the difference between such aggregate benefitspaidandsuch accumulatedcontributionspluscreditedinterest.

In the event (i) the coparticipant predeceases the member, (ii) the member and the coparticipant divorce, or (iii) the member and the coparticipant legally separate on or after July 1, 2020, the member's actuarially reduced benefit shall revert to an unreduced benefit under Plan N and, upon the member's death, any remaining value in the member's account shall be paid to the member's designated beneficiary, if any, or, if there is no designatedsSB396 beneficiary,/ toFile theNo. member's estate.

[(2)651 The27 benefitsSB396 payableFile to such coparticipant of such member who dies after such option first becomes effective but before retirement shall be the actuarial equivalent of the normal, early or proratable benefit for which such member was eligible based on such member's age at death and the age of such coparticipant on such date of death.] [(3) (A)] (B) (i) Except as provided in this subparagraph, [(B) of this subdivision,] a coparticipant option shall be terminated, for any member whose designated coparticipant dies or is divorced from the member after the member's retirement, on the date of such death or LCO No.

708651 28designated ofbeneficiary, 45to Raisedthe Billmember's No.estate.

396[(2) The benefit payable to such coparticipant of such member who dies after such option first becomes effective but before retirement shall be the actuarial equivalent of the normal, early or proratable benefit for which such member was eligible based on such member's age at death and the age of such coparticipant on such date of death.] [(3) (A)] (B) (i) Except as provided in this subparagraph, [(B) of this subdivision,] a coparticipant option shall be terminated, for any member whose designated coparticipant dies or is divorced from the member after the member's retirement, on the date of such death or divorce.

(a) A member who voluntarily or involuntarily terminates [prior to] service with the member's employer, including termination due to the member's death, before retirement shall be entitled to have refunded his or her accumulated voluntary contributions with credited interest.

(b) A member who voluntarily or involuntarily terminates service with the member's employer, including termination due to the member's death, before retirement with less than five [years'] years of credited service in the public schools of Connecticut shall be entitled to have refunded his or her accumulated regular contributions with creditedcreditedinterest.Amemberwho interest.voluntarilyorinvoluntarilyterminates service with the member's employer, including termination due to the sSB396 / File No.

A651 member28 whosSB396 terminatesFile serviceNo. with the member's employer, including termination due to the member's death, before the member's retirement with more than five years of credited service shall be entitled to have refunded his or her accumulated regular contributions with credited interest and his or her accumulated one per cent contributions withheld prior to July 1, 1989.

651 member's death, before the member's retirement with more than five years of credited service shall be entitled to have refunded his or her accumulated regular contributions with credited interest and his or her accumulated one per cent contributions withheld prior to July 1, 1989.

(c) A member who voluntarily or involuntarily terminates service with the member's employer, including termination due to the member's death, before retirement with more than ten years' credited serviceserviceinthepublicschoolsofConnecticut [butpriortoretirement]may elect to receive in lieu of the publicbenefits schoolsprovided by this chapter a refund of LCOhis No.or her accumulated contributions with credited interest as provided in subsection (b) of this section.

708If 29such ofmember 45elects Raiseda Billrefund, No.396all Connecticutcredited [butservice priorshall tobe retirement]cancelled mayand electany rights to receive in lieu of the benefits provided by this chapter ashall refundbe ofextinguished, hisexcept or her accumulated contributions with credited interest as provided in subsection (b)(d) of this section.

If such member elects a refund, all credited service shall be cancelled and any rights to benefits provided by this chapter shall be extinguished,except as providedinsubsection(d) ofthissection.If such member does not elect a refund, but dies before age sixty or before receiving the deferred vested benefit, if later, such member's [accumulated voluntary contributions,] accumulated regular contributions with credited interest and accumulated one per cent contributions withheld prior to July 1, 1989, [together with credited interest] shall be paid to such member's designated beneficiary.

Restored contributions and interest shall be credited with credited interest for the periodsSB396 between/ theFile lastNo. day for which interest was credited on such contributions and such member's [return to service] date of repayment.

651 29 sSB396 File No.

651 period between the last day for which interest was credited on such contributions and such member's [return to service] date of repayment.

(3) furnish to the board at times designated by [said] the board LCOsuch No.reports and information as the board deems necessary or desirable for the proper administration of the system;

708 30 of 45 Raised Bill No.396 such reports and information as the board deems necessary or desirable for the proper administration of the system;

[Such amounts] If the employer deducted such amount from thesSB396 member's/ salaryFile butNo. failed to remit the payment to the board, the employer shall be responsible for paying the amount deducted for the mandatory contribution plus the credited interest due from the date the payment of the mandatory contribution amount was required to be made by the employer to the date the payment was received by the board.

651 30 sSB396 File No.

651 the member's salary but failed to remit the payment to the board, the employer shall be responsible for paying the amount deducted for the mandatory contribution plus the credited interest due from the date the payment of the mandatory contribution amount was required to be made by the employer to the date the payment was received by the board.

(2) [Such amounts] All amounts transmitted to the board for member contributions shall at all times be the property of the system and while in the custody of such local treasurer or other person such person is a LCOfiduciary No.with respect to such amounts and shall discharge a fiduciary's responsibilities solely for the benefit of the system.

708 31 of 45 Raised Bill No.396 fiduciary with respect to such amounts and shall discharge a fiduciary's responsibilities solely for the benefit of the system.

Section 10-183o of the general statutes is repealed and the followingsSB396 is/ substitutedFile inNo. lieu thereof (Effective July 1, 2022):

651 31 sSB396 File No.

651 following is substituted in lieu thereof (Effective July 1, 2022):

Section 10-183q of the general statutes is repealed and the LCOfollowing No.is substituted in lieu thereof (Effective July 1, 2022):

708(a) 32The portion of 45each Raisedmember's Billcompensation No.396deducted followingor isto substitutedbe indeducted lieuunder thereofthis (Effectivechapter Julyand 1,all 2022):rights of each member and of each survivor toreceive benefitsor other paymentsunder thischapter:

(a)[shall] The(1) portionShall of each member's compensation deducted or to be deductedexempt underfrom thisthe chapteroperation and all rights of eachany memberlaws andrelating of each survivor to receivebankruptcy benefits or otherinsolvency; payments under this chapter:

(1) [shall] Shall be exempt from the operation of any laws relating to bankruptcy or insolvency;

For purposes of this subsection, "eligible rollover distribution" and "eligible retirement plan" have the same meanings as provided in Section 402 of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time, except (1)sSB396 a/ qualifiedFile trustNo. shall be deemed an eligible retirement plan only if it accepts such person's eligible rollover distribution;

651 32 sSB396 File No.

651 (1) a qualified trust shall be deemed an eligible retirement plan only if it accepts such person's eligible rollover distribution;

Any member receiving retirement benefits or a disability allowance LCOfrom No.the system;

708 33 of 45 Raised Bill No.396 from the system;

[On and after July 1, 2012, federal reimbursements received by the retirement board under the retiree drug subsidy provisions of Medicare Part D shall be used to offset amounts appropriatedsSB396 by/ theFile state to the board pursuant to this subsection.] (b) (1) Any member who (A) is receiving retirement benefits or a disability allowance from the system, the spouse or surviving spouse of such member, or a disabled dependent of such member if there is no spouse or surviving spouse, and who is not participating in Medicare Part A hospital insurance and Medicare Part B medical insurance, and (B) meets the state's eligibility criteria for health insurance or is eligible to participate in the group health insurance plan offered by such member's last employing board of education, may fully participate in any or all group health insurance plans maintained for active teachers LCO No.

708651 3433 ofsSB396 45File RaisedNo. Bill No.396 by such member's last employing board of education, or by the state in the case of a member who was employed by the state, upon payment to such board of education or to the state, as applicable, by such member, spouse, surviving spouse or disabled dependent, of the premium charged for [his] the member's form of coverage.

651 appropriated by the state to the board pursuant to this subsection.] (b) (1) Any member who (A) is receiving retirement benefits or a disability allowance from the system, the spouse or surviving spouse of such member, or a disabled dependent of such member if there is no spouse or surviving spouse, and who is not participating in Medicare Part A hospital insurance and Medicare Part B medical insurance, and (B) meets the state's eligibility criteria for health insurance or is eligible to participate in the group health insurance plan offered by such member's last employing board of education, may fully participate in any or all group health insurance plans maintained for active teachers by such member's last employing board of education, or by the state in the case of a member who was employed by the state, upon payment to such board of education or to the state, as applicable, by such member, spouse, surviving spouse or disabled dependent, of the premium charged for [his] the member's form of coverage.

Absent any contractual provisions to the contrary, the payments made pursuant to subsection (c)sSB396 of/ thisFile sectionNo. shall be first applied to any cost borne by the member, spouse, surviving spouse or disabled dependent participating in any such plan.

651 34 sSB396 File No.

651 (c) of this section shall be first applied to any cost borne by the member, spouse, surviving spouse or disabled dependent participating in any such plan.

LCO(c) No.(1) On and after July 1, 2000, the board shall pay a subsidy equal to the subsidy paid in the fiscal year ending June 30, 2000, to the board of education or to the state, if applicable, on behalf of any member who is receiving retirement benefits or a disability allowance from the system, the spouse of such member, the surviving spouse of such member, or a disabled dependent of such member if there is no spouse or surviving spouse, who is participating in a health insurance plan maintained by a board of education or by the state, if applicable.

708 35 of 45 Raised Bill No.396 (c) (1) On and after July 1, 2000, the board shall pay a subsidy equal to the subsidy paid in the fiscal year ending June 30, 2000, to the board of education or to the state, if applicable, on behalf of any member who is receiving retirement benefits or a disability allowance from the system, the spouse of such member, the surviving spouse of such member, or a disabled dependent of such member if there is no spouse or surviving spouse, who is participating in a health insurance plan maintained by a board of education or by the state, if applicable.

(3) No payment to a board of education pursuant to this subsection may be used to reduce the amount of any premium payment on behalf of any such member, spouse, surviving spouse, or disabled dependent, made by such board of education pursuant to any agreement in effect onsSB396 July/ 1,File 1990.No.

651 35 sSB396 File No.

651 on July 1, 1990.

LCOCommencing No.July 1, 1989,andannually thereafter allhealthbenefit plan contributions withheld under this chapter in excess of five hundred thousand dollars shall, upon deposit in the Teachers' Retirement Fund, be credited to such account.

708 36 of 45 Raised Bill No.396 Commencing July 1, 1989,andannually thereafter allhealthbenefit plan contributions withheld under this chapter in excess of five hundred thousand dollars shall, upon deposit in the Teachers' Retirement Fund, be credited to such account.

An employer's failure to timely submit a quarterly report shall result in a delay of the subsidy for thatsSB396 quarterandtheboardshallpaythesubsidy/ asaretroactiveFile subsidy,No. as provided in subdivision (2) of this subsection.

651 36 sSB396 File No.

651 that quarterandtheboardshallpaythesubsidy asaretroactive subsidy, as provided in subdivision (2) of this subsection.

The board shall pay the subsidy retroactively to the effective date of the disability, provided any eligible members or dependents are added to the report not later than the first quarter following the board's approval of the disability and the member's disability allowance is initiated LCOwithin No.four months of board approval.

708 37 of 45 Raised Bill No.396 within four months of board approval.

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.sSB396 / File No.

651 37 sSB396 File No.

651 assignment.

Section 10-183aa of the 2022 supplement to the general statutes is amended by adding subsection (h) as follows (Effective July 1, LCO2022): No.

708 38 of 45 Raised Bill No.396 2022):

The board may grant a request for a reimbursement of overdraft charges incurred by a member or beneficiary that resulted from an error in benefit payments, provided thesSB396 member/ orFile beneficiaryNo. makes a request for such reimbursement in writing to the board not later than the last business day of the month after the error occurred.

651 38 sSB396 File No.

651 the member or beneficiary makes a request for such reimbursement in writing to the board not later than the last business day of the month after the error occurred.

(c) Upon determination by the [Teachers' Retirement Board] board LCOthat No.any person has erroneously been included in membership in the teachers' retirement system, contributions and interest credited under the provisions of this chapter shall be refunded and records of related service voided.

708 39 of 45 Raised Bill No396 that any person has erroneously been included in membership in the teachers' retirement system, contributions and interest credited under the provisions of this chapter shall be refunded and records of related service voided.

The additional benefit resulting from the credited service so purchased shall be made retroactive to the date of the member's retirement, and the aggregate amount of such additional benefit shall be paid to the member in a single payment together with interest calculated at a rate equal to the average of interest rates for the most recent ten-year period from the date each payment was due to the date such payment is made.] [(f)] (e) Upon determination by the [Teachers' Retirement Board] board that amember received,onor after November 1,2008,1,2008,anestimate anestimatesSB396 of/ benefitsFile statementNo. from the board that contained a material error, the board shall pay the member the benefits set forth in such estimate if the board determines that (1) the member could not reasonably have been expected to detect such error, and (2) the member, in reliance upon such estimate, irrevocably submitted (A) his or her resignation to the employing board of education, and (B) a formal application of retirement to the [Teachers' Retirement Board] board.

For651 purposes39 ofsSB396 thisFile subsection, "material error" means an error that amounts to a difference of ten per cent or greater between the estimated retirement LCO No.

708651 40of benefits statement from the board that contained a material error, the board shall pay the member the benefits set forth in such estimate if the board determines that (1) the member could not reasonably have been expected to detect such error, and (2) the member, in reliance upon such estimate, irrevocably submitted (A) his or her resignation to the employing board of 45education, Raisedand Bill(B) No396a benefitsandtheactualretirementbenefitstowhichsuchmemberformal wouldapplication otherwiseof beretirement entitled.to the [Teachers' Retirement Board] board.

For purposes of this subsection, "material error" means an error that amounts to a difference of ten per cent or greater between the estimated retirement benefitsandtheactualretirementbenefitsto whichsuchmember would otherwise be entitled.

(a) A local or regional board of education may establish a retirement incentive plan for teachers [, as defined in subparagraph (A) of subdivisionsSB396 (26)/ ofFile sectionNo. 10-183b,] in its employ who are members of the teachers' retirement system.

651 40 sSB396 File No.

651 subdivision (26) of section 10-183b,] in its employ who are members of the teachers' retirement system.

The member shall pay the remaining percentage of such LCOtotal No.cost, if any, in one lump sum not later than thirty days after receipt of notification by the Teachers' Retirement Board of the amount owed.

708 41 of 45 Raised Bill No.396 total cost, if any, in one lump sum not later than thirty days after receipt of notification by the Teachers' Retirement Board of the amount owed.

(a) Not later than fourteen business days after the last action necessary to make effective a state budget act for the biennium ending June 30, 2021, subject to the approval of the Teachers' Retirement Board, the credited interest percentage for member accounts, except voluntary accounts containing only those contributions made pursuant to section 10-183i shall be not more than four per cent per annum and the return assumptionsSB396 shall/ beFile sixNo. and nine-tenths per cent per annum.

Notwithstanding651 theprovisionsof41 sections10-183vv,sSB396 12-801,12-806File andNo. 12-812, if theboardfailsto revise suchpercentage andadopt suchreturn assumption:

651 assumption shall be six and nine-tenths per cent per annum.

Notwithstanding theprovisionsof sections10-183vv,12-801,12-806 and 12-812, if theboardfailsto revise suchpercentage andadopt suchreturn assumption:

and (3) the pledges LCOmade No.in section 10-183vv shall not be in effect.

708 42 of 45 Raised Bill No.396 made in section 10-183vv shall not be in effect.

Sec.sSB396 / File No.

651 42 sSB396 File No.

651 Sec.

(a)There isestablished aHigher EducationConsolidationCommittee which shall be convened by the chairpersons of the joint standing LCOcommittee No.of the General Assembly having cognizance of matters relating to higher education or such chairpersons' designee, who shall be a member of such joint standing committee.

708 43 of 45 Raised Bill No.

396 committee of the General Assembly having cognizance of matters relating to higher education or such chairpersons' designee, who shall be a member of such joint standing committee.

The Higher Education Consolidation Committee shall establish a meeting and public hearing schedule for purposes of receiving updates from (1) the Board of Regents for Higher Education on the progress of the consolidation of the state system of higher education pursuant to this section, section 4-9c, subsection (g) of section 5-160, section 5-199d, subsection (a) of section 7-323k, subsection (a) of section 7-608, subsection (a) of section 10-9, section 10-155d, subdivision [(14)] (15) of section 10-183b, as amended by this act, sections 10a-1a to 10a-1d, inclusive, 10a-3 and 10a-3a, 10a-8, 10a-10a to 10a-11a, inclusive, 10a-17dand10a-22a,subsections(f)and(h)of10a-17dand10a-22a,subsections(f)and(h)ofsection section 10a-22b, subsections (c) and (d) of section 10a-22d, sections 10a-22h and 10a-22k, subsection (a) of section 10a-22n, sections 10a-22r, 10a-22s, 10a- 22u, 10a-22v, 10a-22x and 10a-34 to 10a-35a, inclusive, subsection (a) of section 10a-48a, sections 10a-71 and 10a-72, subsections (c) and (f) of section 10a-77, section 10a-88, subsection (a) of section 10a-89, subsection (c) of section 10a-99 and sections 10a-102, 10a-104, 10a-105, 10a-109e, 10a-143 and 10a-168a, and (2) the Board of Regents for Higher Education and The University of Connecticut on the program approval process for the constituent units.

Section 10-183rr of the general statutes is repealed.repealed and the sSB396 / File No.

(Effective651 July43 1,sSB396 2022)File ThisNo. act shall take effect as follows and shall amend the following sections:

Section651 1following Julyis 1,substituted 2022in 10-183blieu LCOthereof No.(Effective July 1, 2022):

708Notwithstanding 44the provisions of 45subdivision Raised[(26)] Bill(28) No.of section 10-183b, as amended by this act, concerning the requirement that a teacher hold a certificate for the position in which the person is employed, any teacher who possesses a certificate or permit issued by theStateBoardofEducationandisnotifiedonorafterDecember1,2003, by the Department of Education that such teacher is not properly certified for the position in which the teacher is employed or has been employed, such teacher shall receive no further credit in the teachers' retirement system for employment in such position until the teacher becomes properly certified for such position.

396The Sec.Teachers' Retirement Board shall not rescind any credited service to such teacher for such employment and shall restore any such credit to such teacher if rescinded prior to May 27, 2008.

This act shall take effect as follows and shall amend the following sections:

Section 1 July 1, 2022 10-183b Sec.

11 July 1, 2022 10-183t July 1, 2022 Sec.

12 July 1, 2022 10-183v(b) Sec.

20 July 1, 2022 10a-55i(a) Sec.sSB396 / File No.

21651 July44 1,sSB396 2022File RepealerNo. section Statement of Purpose:

To651 reviseSec. and update the teachers' retirement system statutes to align with current practices.

that21 whenJuly the1, entire2022 text10-183rr ofAPP aJoint billFavorable orSubst. resolution or a section of a bill or resolution is new, it is not underlined.] LCO No.

708sSB396 45/ ofFile 45No.

651 45 sSB396 File No.

651 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.

In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.

Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note State Impact:

None Municipal Impact:

None Explanation The bill, which does not result in a fiscal impact, makes various changes to the statutes governing the Teachers' Retirement System that serve to clarify the administration of benefits or bring the statutes into conformity with federal law.

These changes include:

1) specifying that any member voluntary contributions must be credited by actual interest earned as required by federal law;

2) removing an outdated reference to the federal retiree drug subsidy provisions of Medicare Part D;

3) clarifying the reporting responsibilities of the employer (typically a local board of education) to the Teachers' Retirement Board for the health insurance subsidy program and 4) permitting the employer to pay the mandatory contributions on behalf of a member in the armed services consistent with the requirements of the Uniformed Services Employment and Reemployment Act of 1994.

The Out Years State Impact:

None Municipal Impact:

None Sources:

Teachers' Retirement Board sSB396 / File No.

651 46 sSB396 File No.

651 OFA Bill Analysis SB 396 AN ACT CONCERNING REVISIONS TO THE TEACHERS' RETIREMENT SYSTEM STATUTES.

SUMMARY:

The bill makes various changes to the statutes governing the Teachers' Retirement System (TRS) that serve to 1) clarify the administration of benefits, 2) bring the statutes into conformity with federal law, 3) or are technical and conforming in nature.

Benefit Administration Section 4 amends provisions related to alternative payment types (lump sum or annuity) and clarifies that the benefits described are effective after the member is eligible for retirement.

Section 8 specifies that is an error is made by an employer regarding the transmission of deductions, the employer is responsible for any interest due.

Section 10 specifies that the Teachers' Retirement Board has discretion to reimburse bank charges if resulting from an error which codifies current practice.

Federal Law Section 1 specifies that for non-governmental entities , members hired on or after July 1, 2022 will not be allowed to participate in TRS to conform to Internal Revenue Code Section 414(d).

Those members hired prior to July1, 2022 can remain in TRS.

Section 8 permits the employer to pay the mandatory contributions on behalf of a member in the armed services consistent with the 1The Children's Center and the State Education Resource Center sSB396 / File No.

651 47 sSB396 File No.

651 requirements of the Uniformed Services Employment and Reemployment Act of 1994.

Section 18 corrects a provision that conflicted with federal tax requirements with respect to voluntary contribution.

The bill also makes numerous technical and conforming changes.

EFFECTIVE DATE:

July 1, 2022 COMMITTEE ACTION Appropriations Joint Favorable Substitute Yea 49 Nay 1 sSB396 / File No.

651 48