Connecticut 2021 Regular Session Status: Enacted 2 D cosponsors

SB 1081 — AN ACT CONCERNING THE INTEREST RATE RELATING TO TEACHERS' RETIREMENT SYSTEM COST-OF-LIVING ALLOWANCES AND RESERVING CERTAIN LOTTERY FUND REVENUE FOR THE CONNECTICUT TEACHERS' RETIREMENT FUND BONDS SPECIAL CAPITAL RESERVE FUND.

Last action — SIGNED BY GOVERNOR

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed House
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced March 19, 2021. Enacted.

Odds of enactment

High chance

Based on the sponsor, cosponsors, and committee posture, this bill has a high chance of becoming law.

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A statistical estimate from our own model of past outcomes — an insight, not a guarantee. Policymaking is volatile.

Prognosis

Advancing 58% · moderate confidence

  • Enacted

    Current position in the legislative process.

  • 4 sponsors

    4 primary, 0 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (2 D).

Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.

Bill Text

What changed in the latest version

63 added · 157 removed

63 line(s) added, 157 removed.

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Senate General Assembly File No.
Senate Bill No.
667 January Session, 2021 Senate Bill No.
1081 Public Act No.
1081 Senate, May 10, 2021 The Committee on Appropriations reported through SEN.
21-178 AN ACT CONCERNING THE INTEREST RATE RELATING TO TEACHERS' RETIREMENT SYSTEM COST-OF-LIVING ALLOWANCES AND RESERVING CERTAIN LOTTERY FUND REVENUE FOR THE CONNECTICUT TEACHERS' RETIREMENT FUND BONDS SPECIAL CAPITAL RESERVE FUND.
OSTEN of the 19th Dist., Chairperson of the Committee on the part of the Senate, that the bill ought to pass.
AN ACT CONCERNING THE INTEREST RATE RELATING TO TEACHERS' RETIREMENT SYSTEM COST-OF-LIVING ALLOWANCES AND RESERVING CERTAIN LOTTERY FUND REVENUE FOR THE CONNECTICUT TEACHERS' RETIREMENT FUND BONDS SPECIAL CAPITAL RESERVE FUND.
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 SB1081 / File No.
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 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 valueofthepensionassetsfortheprecedingfiscalyearislessthan [eight Senate Bill No.
667 1 SB1081 File No.
1081 and one-half] six and nine-tenths per cent, any cost of living allowance granted shall not exceed one and one-half per cent.
667 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 valueofthepensionassetsfortheprecedingfiscalyearislessthan [eight and one-half] six and nine-tenths per cent, any cost of living allowance granted shall not exceed one and one-half per cent.
If the Connecticut Lottery Corporation offers online its existing lottery draw games through the SB1081 / File No.
If the Connecticut Lottery Corporation offers online its existing lottery draw games through the corporation'sInternetwebsite, online service or mobileapplication, and after any payment to the Connecticut Teachers' Retirement Fund Bonds Public Act No.
667 2 SB1081 File No.
21-178 2 of 3 Senate Bill No.
667 corporation'sInternetwebsite, online service or mobileapplication, and after any payment to the Connecticut Teachers' Retirement Fund Bonds Special Capital Reserve Fund required pursuant to section 12-182, the revenue from such online offering that exceeds an amount equivalent to thecostsofthedebt-free community college programunder section10a- 174 shall be [deposited in] transferred to the subaccount, or, if such online offering is not established, the amount provided under subsection (b) of section 364 of public act 19-117 for regionalization initiatives shall be deposited in the subaccount.
1081 Special Capital Reserve Fund required pursuant to section 12-182, the revenue from such online offering that exceeds an amount equivalent to thecostsofthedebt-free community college program under section10a- shall be [deposited in] transferred to the subaccount, or, if such online offering is not established, the amount provided under subsection (b) of section 364 of public act 19-117 for regionalization initiatives shall be deposited in the subaccount.
This act shall take effect as follows and shall amend the following sections:
Approved July 7, 2021 Public Act No.
Section 1 July 1, 2021 10-183g(l) Sec.
21-178 3 of 3
2 from passage 4-66k(d) APP Joint Favorable SB1081 / File No.
667 3 SB1081 File No.
667 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 makes conforming and technical changes, has no anticipated fiscal impact.
Section 1 amends the statutes governing the Teachers' Retirement System's (TRS) cost-of-living allowances (COLAs) by changing the investment return threshold from 8.5% to 6.9% to align it with the current assumed rate of return used in the TRS actuarial valuation.
The TRS actuary determined that the change in the investment return threshold has no anticipated actuarial impact and therefore no fiscal impact to thestate contributionto thefund.The overarching component of the COLA assumption is the annual rate of increase granted by the Social Security Administration.
Section 2 which specifies that online Lottery Fund revenue are first pledged for payment to the Teachers' Retirement Funds bonds special capital reserve fund is technical in nature and has no fiscal impact.
The Out Years State Impact:
None Municipal Impact:
None Sources:Cavanaugh Macdonald Consulting, COLA Assumptions for Actuarial Valuations, 3/12/20 SB1081 / File No.
667 4 SB1081 File No.
667 OFA Bill Analysis SB 1081 AN ACT CONCERNING THE INTEREST RATE RELATING TO TEACHERS' RETIREMENT SYSTEM COST-OF-LIVING ALLOWANCES AND RESERVING CERTAIN LOTTERY FUND REVENUE FOR THE CONNECTICUT TEACHERS' RETIREMENT FUND BONDS SPECIAL CAPITAL RESERVE FUND.
SUMMARY:
The bill aligns statutory thresholds for pension fund performance and cost of living allowances (COLAs) for retirees of the Teachers' Retirement System (TRS) with the system's recently lowered assumed rate of return.
The bill also reconciles conflicting provisions authorized in the FY 21 – FY 22 Biennial Budget with respect to potential lottery revenues and the securitization of outstanding Teachers' Retirement Fund (TRF) pension obligation bonds.
EFFECTIVE DATE:
Section 1- July 1, 2021, Section 2 – Upon Passage Calculation of Cost of Living Allowance (COLA) (Section 1) Under current law, unchanged by the bill, TRS COLAs are tied to Social Security COLAs and are meant to coincide with each other.
Additionally, current law allows for a potential further adjustment based on investment returns.
The Teachers’ Retirement Board lowered the TRF’s assumed rate of return from 8.0% to 6.9% as part of the TRF restructuring in 2019.
The bill changes the statutory thresholds for investment returns from 8.5% to 6.9% and from 11.5% to 9.9%, respectively.
Under the bill, teachers who retired before 2007 may receive a maximum COLA of 6% if returns exceed 6.9%.
For retirees after 2007, the maximum COLA is 5% if returns exceed the assumed rate of return (6.9%) by three percent (9.9%).
The TRS actuary has indicated that lowering the thresholds will have no impact on the actuarial SB1081 / File No.
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667 5 SB1081 File No.
667 assumptions and therefore no anticipated impact on the state's contribution to the fund.
Regional Planning Incentive Account (Section 2) The bill makes a technical change in the statutes governing the Office of Policy and Management's regional planning incentive account.
The bill addresses conflicting provisions within the FY 20 - FY 21 Biennial Budget (PA 19-117).
PA 19-117 pledged lottery revenues to refill a special capital reserve fund established to secure outstanding pension obligation bonds related to the Teachers’ Retirement Fund.
This provision was part of restructuring the Fund and allowing for the lowering of the assumed rate of return.
Also, within PA 19-117, a conflicting section established an account to finance debt-free community college, using future lottery revenues from mobile or online lottery draw games (iLottery).
This technical change makes clear that thoseonline lotteryrevenuesare legallyfirst pledgedtorefillthereserve fund.
COMMITTEE ACTION Appropriations Joint Favorable Yea 50 Nay 0 SB1081 / File No.
667 6
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Action History

  1. SIGNED BY GOVERNOR

  2. TRANSMITTED BY SECRETARY OF THE STATE TO GOVERNOR

  3. TRANSMITTED TO SECRETARY OF THE STATE

  4. PUBLIC ACT 21-178

  5. IN CONCURRENCE

  6. HOUSE PASSED

  7. HOUSE CALENDAR NUMBER 598

  8. FAV. RPT., TABLED FOR HOUSE CALENDAR

  9. SENATE PASSED

  10. FILE NO. 667

  11. SENATE CALENDAR NUMBER 396

  12. FAV. RPT., TAB. FOR CAL., SEN.

  13. RPTD. OUT OF LCO

  14. REFERRED TO Office of Legislative Research AND Office of Fiscal Analysis 05/10/21

  15. FILED WITH LCO

  16. Joint Favorable

  17. PUBLIC HEARING 0326

  18. REF. TO JOINT COMM. ON Appropriations

Sponsors

Sponsorship breakdown

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4 sponsors · 0 co-sponsors · 183 not signed on

Sponsors (4)

Co-sponsors (0)

None.

Not signed on (183)

183 members have not signed on to this bill.

Show all 183 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

finance education
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Frequently asked questions

Who sponsors SB 1081?
SB 1081 is sponsored by Petit, William A., Aimee Berger-Girvalo (Democratic), Hilda E. Santiago (Democratic), and Winkler, Michael A..
What is the current status of SB 1081?
This bill has been enacted into law. Introduced March 19, 2021. Enacted.
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