Legislative Session Information
Public Act No. 16-91: This act makes several changes to the Teachers’ Retirement System (TRS) laws. One change allows a retired teacher to keep a divorced spouse as a co-participant and another creates an exception to the limit on how much a retired teacher or administrator can be paid while reemployed by a school district. The act also makes minor and technical changes. Effective date: July 1, 2016
Post-divorce retirement benefits: The act allows a teacher retired under the TRS to choose to continue to keep a divorced spouse as a co-participant. Under prior law, a divorce automatically ended the co-participant’s benefit eligibility. The new law requires the filing of a qualified domestic relations order with the TRS to retain the co-participant upon divorce.
Co-participant Retirement Option Background: The TRS offers a retirement option (co-participant option) that allows a TRS member to choose to provide a benefit to the co-participant in the event the member dies before the co-participant. If the retired member dies first, the co-participant continues to receive the benefit for life. Choosing this option means the member’s retirement benefits are reduced to account for the possibility the TRS would be providing benefits over two lifetimes (Sec. 10-183j(c)).
Interest on inactive member contributions: The act allows the TRS to stop crediting interest on the contributions of inactive non-vesting members after 10 years of inactivity, rather than after 25 years under prior law. It also deletes a reference to an obsolete pension reserve account.
Reemployment Pay for Retired Teachers and Administrators: The act creates an exception to the limit on how much a retired teacher or administrator can earn when reemployed by a school district and still receive TRS benefits. The exception applies for a limited time in specific circumstances.
Under the act, the limit of 45% of the position’s top salary is eliminated until July 1, 2018 for a teacher or administrator who (1) is receiving retirement benefits based on 34 or more years of service, (2) is reemployed in an alliance district, and (3) was employed in that district on July 1, 2015. The act also prohibits those employed under the 45% rule and those under the new exception from receiving TRS health insurance benefits while being reemployed.
The act also eliminates the 45% limit if a retired teacher chooses not to receive retirement benefits while reemployed. It allows a teacher receiving TRS retirement benefits to be employed as a public school teacher and receive pay, health insurance benefits, and other benefits provided to teachers in that district, provided the retired teacher does not receive any TRS retirement income during the reemployment period. It requires that the teacher’s retirement benefit resume on the first day of the month following the termination of school reemployment.
2014-15 Legislative Session
Public Act No. 15-5 97 & 98: Retired Teachers' Health Insurance Premium Account
The act removes the annual cap of $150,000 on health care benefit consultant costs (i.e., professional administrative fees) that may be paid from the Retired Teachers' Health Insurance Premium account for health benefit plans offered to members of the Connecticut Teachers' Retirement System. Effective July 1, 2015
Public Act No. 14-47: Income tax exemption for teacher pensions. Among other things, this Act exempts a portion of state teachers’ retirement system [“TRS”] income from the state income tax, specifically by allowing taxpayers to exclude from gross income 10% of TRS income for the 2015 tax year, 25% for the 2016 tax year, and 50% for 2017 and subsequent tax years. Effective July 1, 2015 and applicable to tax years beginning on or after January 1, 2015.
2012-13 Legislative Session
Public Act 13-184, extends to Fiscal Year 2014 and Fiscal Year 2015, the temporary (a) reduction in the state's share of retired teachers' health insurance costs and (b) increase in the share paid by the retired teachers' health insurance premium account.Effective July 1, 2013
2011-2012 Legislative Session
Public Act 12-104, Health insurance for retired teachers participating in Medicare for fiscal year 2013, this act reduces the premium share payable by the General Fund to the amount it appropriates for this purpose, which is 25% of the cost of the basic plan's premium. To compensate for the reduction in the state's payment, the act increases the share paid by the retired teachers' health insurance premium account to 42%. The retired teacher's share remains unchanged at one-third.Effective on passage June 8, 2012
Public Act 12-107, An act expanding the benefit options available to the surviving spouse of a teacher who did not name a spouse as the sole designated beneficiary. It allows the surviving spouse who was not designated as the sole beneficiary the same benefit options as those who were named sole beneficiary, provided the teacher was eligible for a retirement benefit.Effective on passage June 8, 2012 and applicable with respect to members who died on or after January 1, 2008.
2010-11 Legislative Session
Public Act 11-48, An act making changes to the make-up of the board by removing the commissioner of the Department of Social Services and adding the State Treasurer and the secretary of the Office of Policy and Management as ex officio members, and adding one more active teacher. It also makes the treasurer, OPM secretary, and education commissioner voting members. As a result, board membership increased from 12 to 14 members. Effective on passage June 13, 2008
It also required that any pension payments be made by electronic direct deposit unless otherwise requested by the recipient. Effective July 1, 2008
2009-10 Legislative Session
Public Act No. 10-3, An Act Concerning Deficit Mitigation For The Fiscal Year Ending June 30, 2010 adjusted the fiscal year appropriation for retired teachers’ health services cost as a result of funds that were carried over from the prior year’s appropriation. Effective April 14, 2010
Public Act No. 10-22, An Act Making Clarifying Changes To The Teachers’ Retirement System Statutes corrected obsolete language applicable to a deferred vested retirement allowance and the time frame that a board of education and/or a member must remit payment for service credit, when appropriate, purchased in connection with an early retirement incentive program. Effective May 5, 2010
Public Act No. 10-57, An Act Concerning Expenses for Health Benefits Plans Under the Teachers’ Retirement Fund permits the Teachers’ Retirement Board to pay for professional consulting services related to the administration of the health benefits plans directly from the Health Insurance Premium Account up to a maximum of one hundred fifty thousand annually. Prior to the enactment of this provision, such services were paid from general fund appropriations. Made other technical statutory language changes to C.G.S. 10-183t dealing with health insurance benefits for retired teachers. Effective May 26, 2010
In addition, this act requires the Teachers’ Retirement Board to correct and adjust the retirement benefits of any member who was provided with an estimated retirement benefit on or after November 1, 2008 that was at least ten percent less than the actual retirement benefit to which the member is entitled to receive if the member could not reasonably have been expected to detect this error, that the member relied on this estimate, submitted (a) an irrevocable resignation to his or her employing board of education and (b) a formal application of retirement to the Teachers’ Retirement Board.Effective October 1, 2010
Public Act 10-111, An Act Concerning Education Reform In Connecticut made technical changes applying to the reemployment of retired teachers and allows retired teachers who teach in subject shortage areas in any school district, as well as retired teachers teaching any subject in a priority school district to be exempt from the forty-five percent earnings limitation for one full school year, with a possible extension for a second year. Effective May 26, 2010
2008-09 Legislative Session
Public Act 09-43, An Act Concerning Technical Changes To The Calculation Of Cost Of Living Allowances For Members Of The Teachers’ Retirement System made a technical change to the language applicable to the calculation of annual cost of living benefits for retired teachers who are receiving benefits that include a supplemental or voluntary annuity payment. Effective May 20, 2009
2007-2008 Legislative Session
Public Act No. 08-112 An Act increasing the health insurance subsidy to retired teachers and concerning credited service for teachers' retirement was signed by Governor on May 27, 2008.
TRB will pay a subsidy of $220 per month to a board of education on behalf of a retired member, spouse, surviving spouse or civil union partner who has (1) attained the required age to participate in Medicare Part A (Hospital Insurance), (2) does not have sufficient quarters on her/his behalf or as a spouse to qualify for such coverage without paying a premium to purchase Medicare Part A and (3) is paying a minimum premium of at least $220 per month toward her/his health plan, excluding the cost of dental insurance, through her/his board of education. Effective July 1, 2008
Allows a member to purchase in excess of ten (10) years of out of state service, provided the member pays the full actuarial cost resulting from the purchase of such out of state service in excess of ten (10) years). Effective July 1, 2008
Prohibits the rescinding of retirement credit of a member who was not notified prior to December 1, 2003 that she/he was not properly certified for the position in which the teacher is or was employed. If the member is notified on or after July 1, 2008 that she/her was not properly certified for his or her position, she/he will not receive retirement credit until being properly certified for her/his position. Effective on passage May 27, 2008
Public Act 08-76 An Act revising statutes concerning the Teachers' Retirement System to conform to the internal revenue code was signed by the Governor on May 27, 2008. To amend sections of the general statutes concerning the Teachers' Retirement System to limit the additional voluntary contributions a member may contribute, limit the maximum amount of the annual allowable retirement benefit and incorporate Internal Revenue Code minimum distribution rules.
Provides for a grandparent clause that allows a TRB member, who became a member of the system prior to January 1, 1996, to be exempt from the maximum annual earnings limitation allowed under Section 401(a) 17 of the Internal Revenue Service Code.
Changes the definition of credited interest from “which shall be substantially earned by the funds of the system” to consistent with industry standards and practices.
Conforms the annual retirement benefit maximum annual limit to Section 415 of the Internal Revenue Code. For 2008, this limit is $185,000 or 100% of compensation for the highest 3 years, whichever is less. This amount is adjusted annually and actuarially adjusted based on the age at retirement. Also, requires that a member cannot make after tax Voluntary contributions in excess of the annual limitation imposed under Section 415(c).
For post January 1, 1996 TRB membership, requires that the maximum annual earnings comply with the maximum earnings limitation of Section 401(a) 17 of the Internal Revenue Code. For 2008, that limitation is $230,000.
2006-2007 Legislative Session
Public Act No. 07-186 An Act Concerning adequate funding of the Teachers' Retirement System was signed by the Governor July 10, 2007.
The act authorizes enough state general obligation (GO) bonds to fund (1) $2 billion of the unfunded liability of the Teachers' Retirement System (TRS), (2) the cost of issuing the bonds, and (3) up to two years of interest on the bonds. It exempts the bonds from the state's debt limit. The maximum bond term is 30 years.
For each fiscal year in which the bonds are outstanding, the act automatically appropriates the actuarially required annual state contribution to the Teacher's Retirement Fund (TRF). It allows the state to reduce annual TRF contributions only if (1) it protects bondholders' rights in another way or (2) the governor declares an emergency or extraordinary circumstances, a supermajority of the legislature approves, and the reduction does not cause the TRF's funded ratio (assets versus liabilities) to fall below specified levels.
The act makes all TRS benefits contractual for all vested TRS members while the bonds are outstanding, thus barring the state from unilaterally reducing benefits during that time. Certain specified TRS benefits are already contractual for active teachers who were vested in the system on October 1, 2003 or who become vested or accumulate 10 years of credited service after that date.
The act eliminates the cost of living adjustment reserve account (CLARA) within the TRF and credits all CLARA's assets to the TRF. CLARA was used to fund annual cost of living adjustments (COLAs) for TRS members who retired on or after September 1, 1992 and their surviving beneficiaries. Under prior law, CLARA was funded by allocating to it any total annual TRF returns above 11.5%.
The act guarantees TRS members who retire on or after September 1, 1992 an annual COLA by eliminating a provision that barred TRS from paying them a COLA in any year that TRS actuaries determined CLARA did not have enough money to pay for it. The act also reduces promised retirement COLAs for members who join TRS on or after July 1, 2007.
Finally, the act automatically appropriates all the GO bond premiums the state receives from July 1, 2007 through June 30, 2009 for GO bond debt service in addition to budgeted debt service appropriations. Under the act, premium funds do not lapse at the end of those fiscal years and the treasurer can use them for debt service unless she determines they are no longer needed for that purpose. The treasurer usually deposits any bond premiums in the General Fund's debt service account. (A premium is an amount a bond purchaser pays for a bond that exceeds its face value. Buyers typically pay a premium to receive an above-market interest rate on a bond.)
2005-2006 Legislative Session
Public Act No. 06-190 An Act Concerning the commencing date of benefit payments, options of certain surviving spouses, health benefit plans under the Teachers' Retirement System, authorizing members of the Teachers' Retirement System to contribute to retirement incentive plans for teachers and to purchase retirement credit for certain service as assistant social workers was signed by the Governor on June 7, 2006.
To allow the Teachers' Retirement Board additional time to calculate a retired member's benefit and make payment of such benefit for the first time; to allow the surviving spouse of a member who (1) designated such spouse as the sole beneficiary on the application for retirement filed by such member, and (2) dies after filing such application but before the effective date of such application, to elect either preretirement death benefits or the benefit option selected by the deceased member on such application; and to require any member receiving retirement benefits or a disability allowance from the system, the spouse or surviving spouse of such member, and a disabled dependent of such member if there is no spouse or surviving spouse, to participate in Medicare Part B medical insurance.
To permit members of the Teachers' Retirement System who are eligible for retirement incentive plans established by local or regional boards of education to pay up to one-half of the cost of purchasing additional credited service on behalf of such member, not exceeding the lesser of (1) five years of additional credited service, or (2) an amount of service credit equal to one-fifth of the member's total credited service, including additional credited service purchased by the member pursuant to the provisions of section 10-183e of the general statutes.
Public Act No. 06-192 An Act Concerning minor revisions to the Education Statutes.
A former teacher receiving retirement benefits from the system may be reemployed by a local board of education or by any constituent unit of the state system of higher education in a position designated by the Commissioner of Education as a subject shortage area for the school year in which the former teacher is being employed. Such employment may be for up to one full school year but may, with prior approval by the board, be extended for an additional school year. Such request for approval shall be made in writing to the Teachers' Retirement Board and certified by the local board of education that no qualified candidates are available prior to the reemployment of such former teacher and shall include a statement indicating the type of assignment to be performed, the anticipated date of rehire and the expected duration of the assignment.
2004-2005 Legislative Session
Public Act No. 05-10 An Act Concerning Civil Unions was signed by the Governor on April 20, 2005. This law requires that (Sec 14)“Parties to a civil union shall have all the same benefits, protections and responsibilities under law, whether derived from the general statutes, administrative regulations or court rules, policy, common law or any other source of civil law, as are granted to spouses in a marriage, which is defined as the union of one man and one woman.”
It also states, (Sec 15)“Wherever in the general statutes the terms “spouse”, “family”, “immediate family”, “dependent”, “next of kin” or any other term that denotes the spousal relationship are used or defined, a party to civil union shall be included in such use or definition, and wherever in the general statutes, except sections 7-45 and 17b-137a of the general statutes, as amended by this act, subdivision (4) of section 45a-727a, sections 46b-20 to 46b-34, inclusive, section 46b-150d of the general statutes, as amended by this act, and section 14 (above) of this act, the term “marriage” is used or defined, civil union shall be included in such use or definition.
For TRB purposes, this would include eligibility for the health insurance subsidy, TRB health insurance, pre-retirement death benefits and any other benefit a spouse is entitled to through this system.
Public Act No. 05-98 An Act Requiring Participants In Health Benefit Plans Offered By The Connecticut Teachers' Retirement System To Be Medicare Part A Participants was signed by the Governor on June 7, 2006.
The retirement board shall offer one or more health benefit plans to: any member receiving retirement benefits or a disability allowance from the system; the spouse or surviving spouse of such member, and a disabled dependent of such member if there is no spouse or surviving spouse, provided such member, spouse, surviving spouse, or disabled dependent is participating in Medicare Part A hospital insurance. The board may offer one or more basic plans, the cost of which to any such member, spouse, surviving spouse or disabled dependent shall be one-third of the basic plan's premium equivalent, and one or more optional plans, provided such member, spouse, surviving spouse, or disabled dependent shall pay one-third of the basic plan's premium equivalent plus the difference in cost between any such basic plans and any such optional plans. The board shall designate those plans which are basic and those plans which are optional for the purpose of determining such cost and the amount to be charged or withheld from benefit payments for such plans. The surviving spouse of a member, or a disabled dependent of a member if there is no surviving spouse, shall not be ineligible for participation in any such plan solely because such surviving spouse or disabled dependent is not receiving benefits from the system. With respect to any person participating in any such plan, the state shall appropriate to the board one-third of the cost of such basic plan or plans, or one-third of the cost of the rate in effect during the fiscal year ending June 30, 1998, whichever is greater.
Public Act No. 05-153 An Act Requiring the Timely Transmittal by Employers of Necessary Information to the Teachers’ Retirement Board was signed by the Governor on June 24, 2005.
The law establishes the fifth business day of the following month as the deadline for submitting transmittals to the Teachers’ Retirement Board (TRB). This is the same deadline that already exists for submitting members’ contributions to TRB; contributions received after that date are subject to an interest charge of 9% per year. This law requires that not only members’ contributions but also the transmittal which supports and documents the amount of the contribution be submitted by this date. The interest charge may be applied if either the members’ contributions or the transmittal is not submitted on a timely basis. TRB will apply this law beginning with transmittals for the 2005-2006 school year.
2003-2004 Legislative Session
The Regular Session of the 2003-2004 Connecticut General Assembly adjourned on May 5, 2004. House Bill 5607, requested by the Teachers’ Retirement Board, failed to gain necessary legislative support and approval.
This proposed legislation sought to (1) provide progressive cost of living adjustments to retired teachers who retired prior to the enactment of the Education Enhancement Act, when teacher salaries were significantly lower than those of contemporary retirees and whose purchasing power has been eroded by the effects of inflation; (2) provide annual cost of living increases to survivors (spouses, minor children, guardians) in the same manner as to retired teachers and their beneficiaries. Under the current law, the benefits paid to survivors are fixed statutorily and are not subject to annual cost of living increases. This proposal would insure that survivors would receive the same cost of living increases as post 1992 retirees and eliminate the need to have remedial legislation enacted periodically to increase these benefits; (3) provide same sex domestic partners of retired teachers with the same opportunity to participate in health plans offered by the retired member’s local board of education or through the Teachers' Retirement System that is presently available to a retired member's spouse or surviving spouse.
2002-2003 Legislative Session
Public Act No. 03-232 was signed by the Governor on July 9, 2003. A summary is being provided below. The specific provisions of the law may be viewed by visiting the Connecticut General Assembly website at: http://www.cga.ct.gov.
A retired member may be employed temporarily as a teacher or administrator in the public schools of Connecticut and earn up to forty-five (45%) percent of the maximum salary level, established by the school district, for the position occupied. This limitation is on a school year basis (July 1 to June 30). Once this limitation has been met, the employing school district must notify this office by completing a Post Retirement Reemployment 45% Rule - Employer Form (PDF 90KB) and any retired member who receives salary in excess of such amount (during a school year) is required to reimburse the Teachers’ Retirement Board for the excess salary. Effective July 1, 2003
Upon approval of the Teachers’ Retirement Board, a retired member may be reemployed in a designated subject shortage area and continue to receive pension income for a period of one school year. (With prior approval by the Teachers’ Retirement Board, such reemployment may be extended for an additional school year). The employing school district must submit a Subject Shortage Area Reemployment Form to CTRB prior to the reemployment of the retired member. While reemployed in a designated subject shortage area, such former teacher shall be eligible for the same health insurance benefits provided to active teachers employed by such school system. During this period of reemployment, a health insurance subsidy payment will not be issued nor is the reemployed member eligible to participate in a TRB Health Plan.Effective July 1, 2003
The Excess Earnings Account was renamed to the Cost of Living Adjustment Reserve Account. Effective July 1, 2003
Payment for additional credited service purchased on behalf of a member by a board of education under an Early Retirement Incentive Program (ERIP) may be made in equal annual installment payments, including interest, not exceeding three times the number of years being purchased. Effective July 1, 2003
Service as an Elected Teachers' Representative in a statewide, national or international bargaining organization may be purchased if the full actuarial cost is paid to CTRB. Effective July 1, 2003
Retirement benefits for vested active teachers are contractual in nature. Effective October 1, 2003
Active teacher mandatory health contribution increases from 1% to 1.25% of salary. Effective July 1, 2004
Additional credited service in the Teachers' Retirement System may be purchased prior to the time of retirement. (Actuarial tables and additional information will be developed and published by CTRB in the coming months). Effective October 1, 2004
CTRB Sponsored Health Plan allocation of cost will be shared equally with the retired teacher, State of Connecticut and Health Insurance Premium Account each responsible for one-third of the cost. (Currently, the retired teacher pays 25%, the State of Connecticut pays 25% and the Health Insurance Premium Account pays 50%). Effective July 1, 2005
The CGA website is a useful resource for a variety of topics including How a Bill Becomes a Law in Connecticut.