Seal of the Office of the State Comptroller
RETIREMENT & BENEFIT SERVICES DIVISION MEMORANDUM

July 9, 1997

TO THE HEADS OF ALL STATE AGENCIES

ATTENTION: Personnel and Payroll Officers
SUBJECT: SEBAC V - Tier II Five Year Vesting; Reference Chart for Pension Benefits under Tier I, Tier II and Tier IIA

As announced in Comptroller's Memorandum dated May 12, 1997, the SEBAC V Collective Bargaining Agreement contains a five year vesting provision for certain members of the State Employees Retirement System's (SERS) Tier II Plan. This memorandum will clarify the information contained in that communication regarding this new provision.

Effective July 1, 1997, Tier II normal retirement benefits are available after completion of at least five but less than ten years of actual state service for members who have attained at least age sixty-two (62) and make a direct transition into retirement on and after August 1, 1997.

Tier II members with at least five but less than ten years of actual state service who terminate their state employment July 2, 1997 or later and prior to attaining age sixty-two will be in deferred vested status and may commence receipt of normal retirement benefits on the first of the month on or following their sixty-fifth (65) birthday.

The basic benefit will be calculated in accordance with the Tier II normal retirement formula for both those members who transition directly into retirement as well as for those who earn and retain a vested right to a benefit.

The chart attached to this memorandum has been developed to assist agency personnel and payroll officers responsible for disseminating retirement information. The chart (1) summarizes the retirement age and service requirements for non-disability retirement benefits in the Tier I, Tier II, and Tier IIA Plans, (2) contains the statutory and document references for pension benefits under the three Tiers, and (3) provides a guide regarding state-sponsored retiree health insurance and cost of living adjustment entitlement.

As a reminder, entitlement to the state-sponsored retiree health coverage is conditioned upon being eligible for normal, active group health coverage immediately prior to termination or being vested in SERS as of June 30, 1992. Refer to the Retirement Division memorandum entitled, "Retiree Eligibility for State-Sponsored Health Insurance" dated April 15, 1993 for more details. The attached chart may be utilized to determine entitlement for retiree health coverage provided one of the two preceding conditions is satisfied.

Questions concerning the new five year vesting provision or the reference chart may be directed to the Division's Counseling Services Unit at (860) 702-3490.

Very truly yours,

STATE EMPLOYEES RETIREMENT COMMISSION
NANCY WYMAN, SECRETARY EX OFFICIO

BY:

Steven Weinberger, Director
Retirement and Benefit Services Division

STATE EMPLOYEES RETIREMENT SYSTEM (SERS)
TIER I, TIER II, AND TIER IIA ELIGIBILITY REQUIREMENTS
SUMMARY FOR NON-DISABILITY PENSION BENEFITS, RETIREE
HEALTH INSURANCE AND COST OF LIVING ALLOWANCES (COLA)

TIER RETIREMENT
TYPE
STATUTE/
DOCUMENT
REFERENCE
AGE AND
SERVICE
REQUIREMENTS
FOR
COMMENCEMENT
OF PENSION
BENEFITS
ENTITLED
TO
RETIREE
HEALTH
COVERAGE *
ENTITLED
TO
COLA
INORMAL 5-162/TIER I
SUMMARY PLAN
DESCRIPTION (SPD)



AGE 55 WITH 25 YEARS CREDITED SERVICE YES YES
AGE 65 WITH 10 YEARS CREDITED SERVICE YES YES
AGE 70 WITH 5 YEARS CREDITED SERVICE YES YES
EARLY

5-162, 5-163/TIER I
SPD
AGE 55 WITH 10 YEARS ACTUAL SERVICE YES YES
AGE 60 WITH 10 YEARS CREDITED SERVICE YES YES
HAZARDOUS
DUTY
5-173/TIER I SPD/
1988-1994 PENSION
ARBITRATION
AWARD (P.A.A.)
ANY AGE WITH 20 YEARS HAZARDOUS
DUTY SERVICE
YES YES
VESTED
RIGHTS
5-166/TIER I SPD AGE 55 WITH 10 YEARS ACTUAL SERVICE YES YES
AGE 60 WITH 10 YEARS CREDITED SERVICE YES YES

TIER RETIREMENT TYPESTATUTE/
DOCUMENT
REFERENCE
AGE AND 
SERVICE REQUIREMENTS
FOR
COMMENCEMENT
OF PENSION
BENEFITS
ENTITLED
TO
RETIREE HEALTH COVERAGE *
ENTITLED TO 
COLA
II NORMAL 5-192l/TIER II SPD/ 1988-1994 P.A.A./ SEBAC V AGREEMENT AGE 60 WITH 25 YEARS VESTING SERVICE YES YES
AGE 62 WITH 10 YEARS VESTING SERVICE YES YES
AGE 62 WITH 5 YEARS ACTUAL SERVICE -
EFFECTIVE 7/1/97
YES YES
EARLY 5-192m/TIER II SPD/
1988-1994 P.A.A.
AGE 55 WITH 10 YEARS VESTING SERVICE YES YES
HAZARDOUS
DUTY
5-192n/TIER II SPD/
1988-1994 P.A.A.
ANY AGE WITH 20 YEARS HAZARDOUS
DUTY SERVICE
YES YES
VESTED
RIGHTS
5-192o/TIER II SPD/
1988-1994 P.A.A./
SEBAC V
AGREEMENT/
1997-99 BIENNIAL
BUDGET
LEGISLATION
AGE 55 WITH 10 YEARS VESTING SERVICE  YES YES
AGE 65 WITH 5 YEARS ACTUAL SERVICE -
EFFECTIVE 7/1/97
 NO  YES

TIER RETIREMENT TYPESTATUTE/
DOCUMENT
REFERENCE
AGE AND 
SERVICE REQUIREMENTS 
FOR
COMMENCEMENT
OF PENSION
BENEFITS
ENTITLED 
TO
 RETIREE HEALTH COVERAGE *
ENTITLED TO
 COLA
IIA NORMAL 5-193f, 5-193l/
SEBAC V
AGREEMENT
AGE 60 WITH 25 YEARS VESTING SERVICE YES YES
AGE 62 WITH 10 YEARS VESTING SERVICE YES YES
AGE 62 WITH 5 YEARS ACTUAL SERVICE YES YES
EARLY
5-193m/SEBAC V
AGREEMENT
AGE 55 WITH 10 YEARS VESTING SERVICE YES YES
HAZARDOUS
DUTY
5-193n/SEBAC V
AGREEMENT
ANY AGE WITH 20 YEARS HAZARDOUS
DUTY SERVICE
YES YES
VESTED
RIGHTS
5-193o/SEBAC V
AGREEMENT
AGE 55 WITH 10 YEARS VESTING SERVICE YES- if 10
years actual
state service
YES- if 10
years actual
state service
AGE 65 WITH 5 YEARS ACTUAL SERVICE NO NO

*Entitlement to the State-sponsored retiree health coverage is conditioned upon (1) being eligible for normal, active group health coverage immediately prior to termination or (2) being vested in the SERS as of 6/30/92. The "Entitled to Retiree Health Coverage" column in this chart may be utilized only if one of these two conditions is satisfied.

RETIREMENT & BENEFIT SERVICES DIVISION 7/97

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