MEDICAL EXAMINING BOARD
For DISABILITY RETIREMENT
|55 ELM STREET
Telephone (860) 702-3480
Facsimile (860) 702-3489
|STATE OF CONNECTICUT|
RETIREMENT SERVICES DIVISION
OFFICE OF THE STATE COMPTROLLER
RETIREMENT SERVICES DIVISION MEMORANDUM 2013-04
June 24, 2013
TO THE HEADS OF ALL STATE AGENCIES
|ATTENTION:||All Human Resources and Payroll Officers|
|SUBJECT:||Additional information on SEBAC 2011 Option to Retain Normal Grandfathered Retirement Date|
The purpose of this memorandum is to notify agencies of modifications to the provisions of the SEBAC 2011 Agreement for current Tier II and Tier IIA or Hybrid members of the State Employees Retirement System to choose to retain a grandfathered normal retirement date.
II. GENERAL INFORMATION
Prior to the SEBAC 2011 agreement, Normal Retirement Age was 60 with 25 years of service or 62 with 10 years of service for Tier II and Tier IIA non-hazardous duty members. Pursuant to the SEBAC 2011 Agreement and Item 1707-E for employees exempt from collective bargaining, this will change for all employees not retired by July 1, 2022 who have not already attained their Normal Retirement Age. For affected employees, the new retirement age will be age 63 with 25 years of service or age 65 with 10 years of service.
The Agreement and, by extension Item 1707-E included a provision for a one time irrevocable option to enable affected members to grandfather their normal retirement date as long as they pay the full actuarial cost for this benefit.
III. SPECIFIC INFORMATION REGARDING THE MODIFICATIONS TO THE PROVISION
Hazardous duty members are now eligible to make this election in the event that they retire under the non-hazardous duty provisions of SERS in the future. These employees will have until September 1, 2013 to make this election and specific information will be forthcoming when details are available.
An extension has been granted for all employees to elect to grandfather their retirement age until September 1, 2013. All applications received by July 5, 2013 will have their first deduction on the check date August 9, 2013. All applications received after this will be subject to retroactive mandatory contributions back to the pay period commencing on July 12, 2013. Please ensure that any employee opting in between July 1, 2013 and September 1, 2013 is aware that the retroactive contributions will be deducted immediately upon being entered on the payroll in CORE-CT.
The Q&A's have been enhanced online and can be found on the Comptrollers website at http://www.osc.ct.gov/2013memos/retirement/index.html .
All Core-CT payroll users will receive a report indicating which employees
have been updated with the additional deduction and the percentage that has been
set up for the employee. This will happen once the deductions are in place for
the first payroll calculation under the check date of August 9th and will be
distributed to Agency Core-CT payroll users.
Please ensure that all Tier II and Tier IIA and Hybrid members of the State Employees Retirement System that were employed prior to July 1, 2011 have received the notice and form. Agencies should forward the forms to the Retirement Division Database Unit as they are completed. Forms must be received by July 5, 2013 in order process for check date August 9, 2013. Any forms received after this date will be subject to a mandatory retroactive contribution. Any questions concerning the information provided herein may be sent to the Retirement Services Division by email to firstname.lastname@example.org
Very truly yours,
STATE EMPLOYEES RETIREMENT COMMISSION
KEVIN LEMBO, SECRETARY EX OFFICIO
Brenda K. Halpin, Director
Retirement Services Division
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