STATE EMPLOYEES
RETIREMENT COMMISSION

MEDICAL EXAMINING BOARD
For DISABILITY RETIREMENT
COMPTROLLER'S SEAL STATE OF CONNECTICUT 55 ELM STREET
HARTFORD, CONNECTICUT
06106-1775
Telephone (860) 702-3480
Facsimile (860) 702-3489
  STATE OF CONNECTICUT  
  RETIREMENT SERVICES DIVISION
OFFICE OF THE STATE COMPTROLLER
 

RETIREMENT SERVICES DIVISION MEMORANDUM 2011-05

August 25, 2011

TO THE HEADS OF ALL STATE AGENCIES

ATTENTION: Human Resources and Payroll Officers
SUBJECT: Direct Deposit of Retirement Checks

I. INTRODUCTION

As part of the Office of the State Comptroller's on-going efforts to identify ways to save taxpayer dollars and make state services more efficient, the Retirement Services Division (Division) has made changes to the retiree direct deposit program and procedures and revised Form CO-1068, "Retirement Direct Deposit Authorization and Input Form"..

II. CHANGES TO PROCESSES AND PROCEDURES

Effective August 1, 2011, paper direct deposit statements will no longer be produced for retirees every month unless the retiree requests to opt out of this cost saving program. Retirees will be able to refer to their regular bank statements to verify earnings. It is anticipated that this change will save approximately $15,000 each month - reducing postage and paper, and freeing up valuable state resources.

Retirees participating in direct deposit will receive a paper deposit advice:

Effective with retirements on or after October 1, 2011, all employees will be required to submit a completed Form CO-1068,"Retirement Direct Deposit Authorization and Input Form", revised August 2011, with their retirement application package.

Form CO-1068, "Retirement Direct Deposit Authorization and Input Form", has been revised, however, to allow a retiring member to request an exemption from enrollment in direct deposit and, should they elect direct deposit, the ability to opt out of the cost saving paper deposit advice reduction program.

We encourage agencies to advocate for participation by their employees both in direct deposit and the paper deposit advice reduction programs. Participation in direct deposit guarantees retirees' funds are available on the last business day of each month. For retirees who do extensive traveling or spend winter months in another locale, participation in direct deposit prevents delays in receipt of their pension due to address changes or temporary mail forwarding orders. Participation in direct deposit further protects the retiree from any delay in receipt of their retirement benefit due to lost or stolen mail. Each month, the Division's Retirement Payroll Unit gets 10 to 15 calls from state retirees concerning lost retirement checks. Approximately half of the calls result in the Unit reissuing a check. The process for reissuing a lost payroll check involves several steps and can take several weeks. The retiree must be sent a lost check affidavit that they must then sign, have notarized and return to this office. Following receipt of the completed affidavit, the Unit must request permission to reissue the check from the Treasurer's Office, manually produce a check and return it to the Treasurer's Office to be signed. It can take up to 10 days from receipt of the affidavit to reissue a check.

Agencies must ensure that a completed, signed form be submitted with every retirement application packet forwarded to the Division. Retiring employees should be advised that the Division will not be able to process the employee's retirement benefits in a timely manner if this form is not received with the application packet.

The revised form is now available on the Office of the State Comptroller website at the following link: http://www.osc.ct.gov/agencies/forms/retire/index.html

III. CONCLUSION

Any questions you have regarding this matter may be addressed to the Division's Retirement Payroll Unit at 860-702-3528 or by email at osc.retireepayrollunit@po.state.ct.us 

Very truly yours,

STATE EMPLOYEES RETIREMENT COMMISSION
KEVIN LEMBO, SECRETARY EX OFFICIO

BY:

Jeanne A. Kopek, Acting Director
Retirement Services Division

JAK

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