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
|Name||November 25, 2014|
|City, CT 060XX|
RE: Important Information for ARP Participants
You are receiving this letter because you were employed prior to July 1, 2011 and were participating in the Alternative Retirement Plan (ARP) on June 30, 2011. As a result, you are eligible to elect a one-time irrevocable option to transfer from ARP to the State Employees Retirement System (SERS) Hybrid Plan.
Please Note: If you have already initiated an ARP to Hybrid transfer request please disregard this notice.
Transfers from the ARP to Hybrid Plan require ARP participants to pay the full actuarial cost. The actuarial factors used to determine the costs are reviewed by the Plan's actuaries every two (2) years. This review may result in changes to the cost.
Based on the recent actuarial valuation, new actuarial factors will go into effect January 1, 2015, which will result in transfer costs for applications received on or after January 1, 2015 to increase an average of 3% more. The current factors to transfer from the ARP to Hybrid will remain in place for complete applications postmarked no later than December 31, 2014. The cost increase will only apply to requests for transfer postmarked after December 31, 2014.
The "window" for active ARP participants to choose to transfer from ARP to the Hybrid Plan will remain an option until 90 days following a ruling by the Internal Revenue Service (IRS) on the SEBAC ARP Grievance (SAG) Award. Information on the process for applying for the transfer can be found at http://www.osc.ct.gov/rbsd/arptransfer/disclaimer.htm.
If you decide to transfer to the Hybrid Plan the ARP funds required to complete your purchase, based upon the calculation attached to your Form CO-994 (Option to Transfer from the ARP to the Hybrid Plan), will be placed in a Hybrid Transfer Account designed to preserve your capital until the purchase has been completed.
If your ARP funds are less than the amount needed to purchase your time, indicate whether you intend to use any 403(b) and/or 457 Plan assets. If so, designate how much will be used, and that amount will be transferred from your current asset allocation to that plan's Hybrid Transfer Account.
Questions regarding this matter may be directed to the OSC Retirement Services Division, Miscellaneous Unit via e-mail at OSC.RSD@ct.gov.
STATE EMPLOYEES RETIREMENT COMMISSION
KEVIN LEMBO, SECRETARY EX OFFICIO
Brenda K. Halpin, Director
Retirement Services Division
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