SB 910 — AN ACT CONCERNING PERMANENT PARTIAL DISABILITY BENEFITS AND PENSION OFFSETS.

Senate General Assembly FileRaised Bill No.

12910 January Session, 2023 SenateLCO Bill No.

9103250 Senate,Referred Marchto 6, 2023 The Committee on LaborLABOR andAND PublicPUBLIC EmployeesEMPLOYEES reportedIntroduced throughby: SEN.

KUSHNER(LAB) ofAN theACT 24thCONCERNING Dist.,PERMANENT ChairpersonPARTIAL ofDISABILITY theBENEFITS CommitteeAND onPENSION theOFFSETS. part of the Senate, that the bill ought to pass.

AN ACT CONCERNING PERMANENT PARTIAL DISABILITY BENEFITS AND PENSION OFFSETS.

SB910LCO /3250 File\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-00910-R01 of 2 SB.docx Raised Bill No.

12910 1(b) SB910Notwithstanding Fileany No.provision of the general statutes or special act, no municipality or special taxing district that provides a pension and retirement system for its officers and employees and their beneficiaries shall diminish or eliminate any right or benefit granted to any retiree under such retirement or pension system due to permanent partial disability benefits received by such retiree in accordance with section 31-308 or 31-308a on or after October 1, 2023.

12 (b) Notwithstanding any provision of the general statutes or special act, no municipality or special taxing district that provides a pension and retirement system for its officers and employees and their beneficiaries shall diminish or eliminate any right or benefit granted to any retiree under such retirement or pension system due to permanent partial disability benefits received by such retiree in accordance with section 31-308 or 31-308a on or after October 1, 2023.

Section 1 October 1, 2023 7-450c LAB Joint Favorable SB910APP /Joint FileFavorable No.LCO 3250 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-00910- 2 of 2 R02-SB.docx }

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12 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:

Municipalities Effect FY 24 $ FY 25 $ Various Municipalities STATE See Below See Below MANDATE 1 - Cost Explanation The bill will result in a cost to municipalities who offer defined benefit retirement plans for employees from eliminating permanent partial disability (PPD) settlement offsets from the pension benefit formula.

The cost will be recognized in the annual actuarially determined employer contribution (ADEC) amounts for municipalities’ respective pension systems.

The bill is interpreted to apply to all current and future retirees for benefits paid on or after October 1, 2023.

The impact to certain municipalities will be realized when the liability is assessed by plan actuaries, to the extent permitted by collective bargaining.

The Out Years The annualized ongoing fiscal impact identified above will continue into the future and be reflected in municipalities annual ADECs.

State mandate is defined in Sec.

2-32b(2) of the Connecticut General Statutes, "state mandate" means any state initiated constitutional, statutory or executive action that requires a local government to establish, expand or modify its activities in such a way as to necessitate additional expenditures from local revenues.

SB910 / File No.

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12 OLR Bill Analysis SB 910 AN ACT CONCERNING PERMANENT PARTIAL DISABILITY BENEFITS AND PENSION OFFSETS.

SUMMARY This bill prohibits municipal or special taxing district pension systems from diminishing or eliminating a retiree’s pension rights or benefits because the retiree received permanent partial disability benefits on or after October 1, 2023, under the workers’ compensation laws for partial incapacity benefits or additional benefits for partial permanent disabilities.

The bill specifies that the prohibition (1) applies regardless of any state law or special act and (2) does not impair or alter the provisions of any collective bargaining agreement in effect before October 1, 2023.

EFFECTIVE DATE:

October 1, 2023 COMMITTEE ACTION Labor and Public Employees Committee Joint Favorable Yea 7 Nay 4 (02/16/2023) SB910 / File No.

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