RETIREMENT SERVICES DIVISION MEMORANDUM 2017-05

December 14, 2017

TO THE HEADS OF ALL STATE AGENCIES

I. INTRODUCTION

 

The purpose of this memorandum is to notify agencies of a forthcoming increase in the retirement contribution rates for the majority of SERS members as required by the terms of the SEBAC 2017 agreement.

 

II. GENERAL INFORMATION

 

Pursuant to the provisions of the SEBAC 2017 agreement, retirement contribution rates for all SERS members of Tier I, Tier II, Tier IIA and Tier III (including hazardous duty and hybrid plans) were initially set to increase by 1.5% of salary effective July 1, 2017 and by a further 0.5% effective July 1, 2019. However due to the delay in the ratification of the agreement, the 1.5% increase in the contribution rate did not commence until the pay period beginning September 1, 2017. As part of the full implementation of the SEBAC 2017 agreement, the Retirement Services Division ("RSD") is now taking this opportunity to inform state agencies that the process of updating the CORE-CT payroll codes has been completed therefore enabling the RSD to commence the collection of the mandatory retroactive retirement contributions due for the period of July 1, 2017 through August 31, 2017 ("Catch-Up Contributions"). For all SERS members impacted by this increase, the Catch-Up Contributions will begin on check date January 19, 2018 and run through the end of the current fiscal year.

 

III. CONCLUSION

 

This memorandum serves to provide information regarding one of the many changes to SERS retirement plan provisions provided for in the 2017 SEBAC agreement as it is a matter that has the most immediate and time sensitive concern. Please be advised that the RSD is in the process of revising forms, revising and drafting summary plan descriptions and implementing processes for the administration of this agreement and will continue to provide agencies with information as it becomes available.

 

Questions you have concerning the changes discussed herein may be addressed to Colin Newman, Assistant Director, at 860-702-3482.

Very truly yours,

STATE EMPLOYEES RETIREMENT COMMISSION
KEVIN LEMBO, SECRETARY EX OFFICIO

BY:

John Herrington, Director
Retirement Services Division

JH/cn

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