STATE EMPLOYEES RETIREMENT COMMISSION MEDICAL EXAMINING BOARD For DISABILITY RETIREMENT		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 2012-08

July 13, 2012

TO THE HEADS OF ALL STATE AGENCIES

I. INTRODUCTION

The purpose of this memorandum is to notify agencies of a new form and procedure in connection with the provision of the 2011 agreement between the State and the State Employees Bargaining Agency Coalition (SEBAC) which allows participants in the Alternate Retirement Program (ARP) employed prior to July 1, 2011 a one-time irrevocable option to transfer their membership from ARP to the State Employees Retirement System (SERS) Hybrid Plan.

 

Although the information in this memorandum is being provided to all state agencies, this transfer opportunity is limited to ARP participants employed in higher education agencies.

II. ARP TO SERS HYBRID PLAN TRANSFER PROGRAM - PROSPECTIVE ELECTION ONLY

ARP participants who choose to transfer to the SERS Hybrid Plan under the SEBAC 2011 provision and choose to purchase credit in SERS for their eligible prior Connecticut state service will be required to pay the full actuarial cost of doing so. The benefit which such participant will receive from the SERS Hybrid Plan will be the same as that payable under the SERS Tier II or Tier IIA retirement plan dependent upon the individual's date of employment. The details concerning a transfer under these circumstances were provided in Retirement Services Division Memorandum (RSD) 2012-07 dated June 22, 2012.

 

ARP participants may also choose to transfer to the SERS Hybrid Plan prospectively only. Under this option an employee would retain their ARP account and become a member of the SERS Hybrid Plan effective with the first day of the payroll period with which their retirement plan membership is changed in the CORE-CT HRMS payroll system to reflect their SERS Hybrid Plan membership and the required retirement plan contribution deductions begin. Retirement plan contributions should be deducted based on the employee's first date of employment as described in RSD Memorandum 2012-07. Upon meeting the appropriate age and service requirements, such participants will receive from the SERS Hybrid Plan benefits which are the same as those payable under the SERS Tier II or Tier IIA retirement plan.

 

The general provisions of the SEBAC 2011 ARP to SERS Hybrid Plan Transfer Program as described in RSD Memorandum 2012-07 apply to those ARP participants who wish to transfer to the Hybrid Plan on a prospective basis only with the exception of prior service purchase provisions.

 

A new form, CO-996, "SEBAC 2011 Option to Transfer from the Alternate Retirement Program to the State Employees Retirement System Hybrid Plan - Prospective Only", has been created for this purpose. The new form is available on the Office of the State Comptroller's (OSC) website, osc.ct.gov  under both the 2011 SEBAC ARP to Hybrid Plan Transfer and Retirement Services Division forms.

III. CONCLUSION

Again, we encourage agencies to review the information available on the Office of the State Comptroller's website concerning the ARP to SERS Hybrid Plan transfer; questions regarding the transfer program may be sent to the Retirement Services Division by email to osc.rsd@po.state.ct.us or directed to the Division's Miscellaneous Retirement Systems Unit at 860-702-3508.

Very truly yours,

STATE EMPLOYEES RETIREMENT COMMISSION
KEVIN LEMBO, SECRETARY EX OFFICIO

BY:

Brenda K. Halpin, Director
Retirement Services Division

BKH/JAK
 

Return to Index of 2012 Retirement Division Memoranda
Return to Index of Comptroller's Memoranda
Return to Comptroller's Home Page