CONNECTICUT STATE EMPLOYEES
RETIREMENT SYSTEM
TIER I SUMMARY PLAN DESCRIPTION

TYPES OF RETIREMENT

WHEN YOU MAY RETIRE AND RECEIVE BENEFITS

Normal Retirement

Your normal retirement date is the first of any month on which or after you:

Age 70 Retirement

You may retire on the first of any month on or following your 70th birthday, if you have at least five years of service.

If you leave state service with less than five years of service at age 70 or older, no retirement benefits are payable.

Early Retirement

If you have at least 10 but less than 25 years of service, you can retire on the first of any month on or after your 55th birthday.

Hazardous Duty Retirement

If you have 20 years of hazardous duty service, you may retire with a benefit on the first of any month, regardless of your age.

Disability Retirement

If you become disabled and have 5 years of service, you may be eligible for disability retirement benefits. If your disability is job related, you may receive benefits regardless of your years of service.

Vested Rights Retirement

Your employment may end before you are eligible for immediate retirement benefits. Refer to the section entitled "If You Leave Before Retirement" for information about vested rights retirement.

NORMAL RETIREMENT

Eligibility Requirements

You are eligible for normal retirement benefits on the first of any month on which or after you attain age 65 with at least 10 years service, or age 55 with at least 25 years of service.

The Benefit Formulas

Your basic normal retirement benefit is calculated using one of two formulas, depending on whether you are in Plan B, or either Plan A or C. The formulas take into account your service and your average salary.

If you are a Plan B member, your basic normal retirement benefit will be calculated as follows:

FORMULA USED UNTIL AGE 65 OR RECEIPT OF A SOCIAL SECURITY
DISABILITY AWARD, IF EARLIER
two percent (.02) X years of X average salary
service

FORMULA USED BEGINNING AT AGE 65 OR RECEIPT OF A SOCIAL
SECURITY DISABILITY AWARD, IF EARLIER

one percent (.01)

X years of
service
X $4,800
PLUS
two percent (.02) X years of X average salary
service over $4,800

If you retire as a Plan A or Plan C member, your basic benefit will be calculated as follows:

two percent (.02) X years of service X average salary

Both the Plan B and the Plan A or C formulas will give you an annual retirement benefit. To find your monthly benefit, divide by 12.

An Example

Suppose you retire at age 58 and you have 28 years of full-time service. Let'sassume your average salary equals $40,500 and you are a Plan B member.

Here's how your basic annual benefit is figured using the Plan B formula:

FORMULA USED UNTIL AGE 65
.02 X 28 X $40,500 = $22,680 per year (or $1,890 per month)

This is the benefit you'll receive until age 65, or until you begin receiving Social Security disability benefits, if earlier. At that time, your Plan B benefit will be recalculated, as follows:

FORMULA USED BEGINNING AT AGE 65
.01 X 28 X $4,800 = $ 1,344
PLUS
.02 X 28 X $35,700 = $ 19,992
($40,500 - $4,800) $ 21,336 per year
(or $ 1,778 per month)

However, if you were a Plan A or Plan C member, your basic annual benefit would be $22,680 each year for your lifetime.

AGE 70 RETIREMENT

Eligibility Requirements

You may retire on the first of any month on or following your 70th birthday, if you have a least five years of any combination of the following types of credited service: actual state, war-time military, leaves of absence without pay and municipal. All required contributions and interest must be paid in full to receive retirement service credit.

The Benefit Formulas

If you are a member of Plan B, your basic annual benefit will be calculated as follows:

one and one-quarter X years of X $4,800
percent (.0125) service, up
to a maximum
of 20
PLUS
two and one-half X years of X average
percent ( .025) service, up salary over
to a maximum $4,800
of 20

If you are a Plan A or Plan C member, your basic annual benefit will equal:

two and one-half X years of X average
percent (.025) service, up salary
to a maximum

of 20

To determine what your basic monthly benefit will be in Plan A, B or C, divide your annual benefit by 12.

Remember, the age 70 retirement formula allows a maximum of only 20 years of service in the calculation. However, we will calculate your benefit using both the age 70 retirement formula and the normal retirement formula. Whichever formula gives you the higher payment will be used to determine your basic annual benefit.

EARLY RETIREMENT

Eligibility Requirements

You may retire with a reduced benefit as early as the first of any month on which or after you attain either age 55 with at least 10 years of actual state service, or age 60 with at least 10 years of any combination of the following types of credited service: actual state, war-time military, leaves of absence without pay and municipal. All required contributions and interest must be paid in full to receive retirement service credit.

The Early Retirement Benefit Percentage Chart

Your basic early retirement benefit will be calculated with the same formula used for normal retirement. However, because this benefit is expected to be paid over a longer time period, it must be reduced. To calculate the reduced benefit, we use a factor lower than the two percent factor used at normal retirement. The amount of the reduction depends on how far away you are from your normal retirement date.

The following table shows the factors for this purpose:

BENEFIT PERCENTAGE FOR EACH YEAR OF SERVICE
Yrs. of Service Age
55 56 57 58 59 60 61 62 63 64 65-69 70+over
5-9 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2.50
10 1.00 1.06 1.12 1.20 1.30 1.40 1.52 1.64 1.76 1.88 2.00 2.50
11 1.07 1.12 1.18 1.25 1.35 1.44 1.55 1.66 1.78 1.89 2.00 2.50
12 1.13 1.18 1.24 1.31 1.39 1.48 1.58 1.69 1.79 1.90 2.00 2.50
13 1.20 1.25 1.29 1.36 1.44 1.52 1.62 1.71 1.81 1.90 2.00 2.50
14 1.26 1.31 1.35 1.41 1.48 1.56 1.65 1.74 1.82 1.91 2.00 2.50
15 1.33 1.37 1.41 1.47 1.53 1.60 1.68 1.76 1.84 1.92 2.00 2.50
16 1.40 1.43 1.47 1.52 1.58 1.64 1.71 1.78 1.86 1.93 2.00 2.50
17 1.46 1.49 1.53 1.57 1.62 1.68 1.74 1.81 1.87 1.94 2.00 2.50
18 1.53 1.56 1.58 1.62 1.67 1.72 1.78 1.83 1.89 1.94 2.00 2.50
19 1.59 1.62 1.64 1.68 1.71 1.76 1.81 1.86 1.90 1.95 2.00 2.50
20 1.66 1.68 1.70 1.73 1.76 1.80 1.84 1.88 1.92 1.96 2.00 2.50
21 1.73 1.74 1.76 1.78 1.81 1.84 1.87 1.90 1.94 1.97 2.00 *
22 1.79 1.80 1.82 1.84 1.85 1.88 1.90 1.93 1.95 1.98 2.00 *
23 1.86 1.87 1.87 1.89 1.90 1.92 1.94 1.95 1.97 1.98 2.00 *
24 1.93 1.93 1.93 1.94 1.94 1.96 1.97 1.98 1.98 1.99 2.00 *
25 or
over 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00
* Using the benefit ratio of 2.50, percentage frozen to a maximum of 50%.

The Benefit Formulas

If you are a Plan B member, your basic early retirement benefit will be calculated as follows:

FORMULA USED UNTIL AGE 65 OR RECEIPT OF A SOCIAL SECURITY
DISABILITY AWARD, IF EARLIER
benefit percentage X years of X average salary
from chart service

FORMULA USED BEGINNING AT AGE 65 OR RECEIPT OF A SOCIAL
SECURITY DISABILITY AWARD, IF EARLIER
one half benefit X years of X $4,800
percentage from chart service
PLUS
full benefit percentage X years of X average salary
from chart service above $4,800

If you retire as a Plan A or Plan C member, your basic benefit will be calculated as follows:

benefit percentage X years of X average salary
from chart service

Both the Plan B and the Plan A or C formulas will give you a basic annual retirement benefit. To find your basic monthly benefit, divide by 12.

An Example

Suppose you retire early at age 58 with 11 years of service. Your benefit percentage from the preceding table would be 1.25. To calculate a benefit, this percentage must be converted to a decimal, so multiply it by .01 (1.25 x .01 = .0125). If your average salary equals $36,000 and you elected Plan B, here's how your basic benefit would be calculated:

.0125 X 11 X $36,000 = $ 4,950 per year
(or $412.50 per month)

This is the basic annual benefit you will receive until age 65, or until you begin receiving Social Security disability benefits, if earlier. At that time, your Plan B benefit will be recalculated, as follows:

.00625

11 $4,800 = $ 330

(1/2 of .0125)

PLUS
.0125 11 X $31,200 $ 4,290
($36,000 - $4,800)  $ 4,620 per year
(or $385.00 per month)

You will receive $4,620 each year for the rest of your life. If you retire as a Plan A or Plan C member, your basic annual benefit will be $4,950 each year for life (.0125 x 11 x $36,000).

HAZARDOUS DUTY RETIREMENT

Eligibility Requirements

You may retire with a benefit at any age if you have 20 years of hazardous duty service.

Definition Of Hazardous Duty

You are considered a hazardous duty member if you are an employee working:

The Benefit Formulas

If you qualify for a hazardous duty retirement, your basic annual benefit will be calculated as follows:

50% (.50) for 20 years hazardous duty service 

X average salary
PLUS
two percent (.02) X all service over 20 X average salary
years (which could
include service for
state jobs not classified
as hazardous as well as
other credited service)

If you are a hazardous duty member who was formerly in Plan B, unless you are an inspector, chief inspector or detective in the Division of Criminal Justice or a chief detective in any other division, you will have a reduction in your state retirement benefit when you attain age 65 or receive a Social Security disability award, if earlier. The reduction will be based on your years of credited service prior to July 1, 1988. The following formulas will help you determine how much your yearly reduction for your former Plan B service will be, when applicable.

FORMULA FOR PLAN B REDUCTION FOR STATE POLICE OFFICERS

$4 

all credited service prior to 7/1/88  12

 

FORMULA FOR PLAN B REDUCTION FOR ALL OTHER
HAZARDOUS DUTY MEMBERS
one and one quarter X hazardous duty service rendered prior to
percent (.0125) 7/1/88 (to a maximum of 20 years)
PLUS
one percent (.01) X all additional service (over 20 years)
rendered prior to 7/1/88 (including
hazardous duty and other credited service)
TIMES
$4,800

An Example

Let's suppose you are retiring with 30 years of service in a hazardous duty position. Assume your average salary equals $42,000. Here's how your basic annual benefit is figured:

.50  X $42,000  = $ 21,000
PLUS
.02  X 10 X $42,000 $ 8,400
(service over $ 29,400 per year
20 years) (or $2,450 per month)

If you were in Plan B, this is the benefit you'll receive until age 65, or until you begin receiving Social Security disability benefits, if earlier. At that time your state retirement benefit will be reduced as explained earlier.

If you retired as a former Plan A or Plan C member, your basic annual benefit would be $29,400 each year for life.

Special Note

Hazardous duty members who leave state service before qualifying for hazardous duty retirement benefits may, if eligible to do so, receive early, normal, or vested rights retirement benefits.

For Plan B hazardous duty members, contributions in excess of those required for an early, normal, or vested rights retirement benefit will be refunded to the member following retirement. Upon written request, terminated vested members may receive a refund of the excess hazardous duty contributions before their retirement benefits begin. Hazardous duty members who retire on disability retirement are not entitled to a refund of any of their hazardous duty contributions.

Plan A and C hazardous duty members who receive an early, normal, or vested rights retirement benefit will be required to contribute the difference between the hazardous duty contribution rate and 5%.

DISABILITY RETIREMENT

Eligibility Requirements

You may receive retirement benefits if you become permanently disabled. To be eligible for a non service-connected disability retirement you must have at least 5 years of service. For service-connected disabilities there is no minimum service requirement.

Definition Of Disability

Disabled means you are permanently unable to perform the duties of your job. Your disability may be service-connected or non service-connected. If your disability is non service-connected, after you have received disability benefits for 24 months you are considered disabled only if you are totally unable to work at any suitable and comparable job.

The determination of eligibility for state disability retirement benefits is made by the Retirement Medical Examining Board. The Board will base its decision on the pertinent medical evidence you provide. It is important that you submit the treating physician's narrative reports as well as diagnostic test and hospital summaries and any other relevant information of ongoing care for the condition on which your application is based. The Board will conduct a hearing in connection with your disability retirement application at which oral testimony  may be given. Remember for non service-connected disabilities, the Board will conduct another review after you have received benefits for 24 months. For individualized information you may contact your agency Personnel or Payroll Officer, or the Retirement Services Division Counseling Services Unit.

If you qualify for a non service-connected disability retirement, the following formula is used to compute your basic annual benefit:

NON SERVICE-CONNECTED DISABILITY RETIREMENT FORMULA
THE LESSER OF:
three percent (.03) X years of service X average
at disability salary
OR
one and two-thirds X years of service X average
percent (.0167) as if you had kept salary
working to age 65

For a service-connected disability, your basic annual benefit will be calculated as follows:

SERVICE-CONNECTED DISABILITY RETIREMENT FORMULA
one and two-thirds X years of service as X average
percent (.0167) if you had kept salary
working to age 65 OR
(up to a maximum your annual rate
of 30 years) of salary at disability
(if greater).

If you retire on a service-connected disability and you have at least five years of service and your date of injury was on or after October 1, 1982, your benefit may be paid under the non service-connected formula, if it produces a higher benefit.

An Example

Assume you become disabled from a non service-connected injury at age 50. You have 10 years of service and your average salary equals $36,000. Your benefit will be calculated two ways: using your service at the time of disability (10 years) and your service projected to age 65 (25 years). Here is how your basic annual benefit is figured:

You will receive the lesser of:
.03 X 10 X $36,000 = $10,800
OR
.0167 X 25 X $36,000 = $15,030

You would receive a basic annual benefit of $10,800 or $900 a month.

Now, let's suppose your disability is service-connected. Your salary at the time of disability is $38,000 (higher than your average salary of $36,000).

Here is how your basic annual benefit is calculated:

.0167 X 25 X $38,000 = $15,865

You would receive a basic annual benefit of $15,865 or $1,322.08 a month.

Maximum Benefits

During your disability retirement you may receive these other forms of income:

The total amount you may receive from the first four listed sources, combined with your Tier I benefit, cannot be more than 80% of your average salary or 80% of your salary at the time of disability, if higher. If your total benefits exceed the 80% maximum, your Tier I benefit will be reduced. The reduction will be the amount needed to bring the benefit total down to the 80% maximum.

Suppose you also earn income from a job. In this case, your total income (from Tier I, Social Security Disability, Workers' Compensation, Disability Compensation, State Police Supplemental Disability benefits and the job combined) cannot exceed 100% of your average salary or 100% of your salary at the time of disability, if higher. If your income exceeds this 100% maximum, your Tier I benefit will be reduced. The reduction will be the amount needed to bring the total down to the 100% maximum.

The Retirement Commission may approve your job as being rehabilitative; that is, being helpful to your recovery. If so, your Tier I benefit will not be reduced based on your salary from that job.

If both the 80% and 100% maximum amounts apply, the formula paying the smaller benefit will be used.

Guarantee Of Minimum Disability Retirement Benefit

Of note, you should be aware that your combined income including disability retirement benefits, any Social Security payments, certain Workers' Compensation payments limited to temporary total and temporary partial payments, Disability Compensation benefits under Section 5-142 of the Connecticut General Statutes, and State Police Supplemental Disability benefits cannot be less than sixty percent of your rate of salary at the time your disability occurred.

Remember, however, that you will always receive the 60% minimum guaranteed amount if it is higher than the amount provided by the basic formulas or the maximum benefits described above.

If You Recover

All disability retirement benefits will end if you recover from your condition before your normal retirement date. You will receive credit for the period of time you were receiving Tier I retirement disability benefits. The total number of years including the time you worked and the period you were receiving the disability benefits is subject to a maximum of 25 years. However, if your service at the time of disability is greater than 25, you will receive credit for your total years of service before your disability.

Special Notes

State Police Officers

In addition to the benefits described in this section, you may be eligible for supplemental disability payments from the Retirement System. For more information, you should contact the Personnel/Payroll Office, Division of State Police, or the Retirement Counseling Services Unit, Retirement Services Division, Office of the State Comptroller.

If you become disabled, be sure to get complete information on the benefits of both a hazardous duty retirement and a disability retirement. Only after you fully understand all your alternatives can you make the right decision for your own situation.

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