THE 2010 SEBAC ARP GRIEVANCE AWARD (SAG AWARD)
Pursuant to the September 22, 2010 SEBAC ARP Grievance Award (SAG Award) all current, active members of the Alternate Retirement Program (ARP) must be given a one-time irrevocable opportunity to elect to transfer to the State Employees Retirement System (SERS) Tier II or Tier IIA retirement plan from the ARP or to remain an ARP member provided such election is made by a date to be determined following receipt of the IRS Private Letter Ruling. ARP members who choose to transfer membership to SERS Tier II or Tier IIA (based upon dates of hire) will also have the option of electing to purchase credit in SERS for their past ARP Service.
As you know, a delay in Award implementation has occurred due to the State Employees Retirement Commission's decision to seek advice on certain tax related questions and concerns surrounding the provisions of the Award. As a result of the Commission's decision, the State and SEBAC agreed to preserve the opportunities provided by the Award and modify the implementation dates so that eligible employees can take advantage of the opportunity, presuming IRS approval. Employees will in the interim remain in their current retirement plan.
The information on this website is being made available to ARP members who wish to research their options during this period. You cannot make any decision or take any action with respect to your ARP benefits at this time. However, you can obtain an estimate of the cost of purchasing past service, how much service you can purchase with the ARP funds that are available to you and review the basic Plan provisions and differences between the Plans.
While this information is meant to be helpful and informative, nothing contained in it should be considered a promise or contract. The applicable retirement statutes, regulations, and decided cases that construe them are the governing law. The Retirement Services Division reserves the right to revise, change or revoke without notice the information, rules and procedure detailed in this website.
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