|55 ELM STREET
TELEPHONE: (860) 702-3480
|MEDICAL EXAMINING BOARD
for DISABILITY RETIREMENT
|HEALTH CARE COST
|STATE OF CONNECTICUT
RETIREMENT SERVICES DIVISION
OFFICE OF THE STATE COMPTROLLER
RETIREMENT SERVICES DIVISION MEMORANDUM 2009-05
May 26, 2009
TO THE HEADS OF ALL STATE AGENCIES
|ATTENTION:||All Human Resources and Payroll Officers|
|SUBJECT:||2009 RETIREMENT INCENTIVE PROGRAM FOR MEMBERS OF THE ALTERNATE RETIREMENT PROGRAM|
On May 15, 2009 the general assembly ratified an agreement between the State Employees Bargaining Agent Coalition (SEBAC) and the State which provides for changes in employee health care and a Retirement Incentive Program (RIP) for certain members of the Alternate Retirement Program (ARP) who retire during a limited window of opportunity as well as legislation extending the health care provisions of the SEBAC agreement to employees not included in any prevailing bargaining unit contract and also providing such employees with the RIP.
In that connection, the purpose of this memorandum is to provide agencies
with (1) eligibility requirements for ARP members' participation in the RIP, (2)
administration and implementation of the RIP provisions for ARP members and (3)
general ARP retirement information.
II. ELIGIBILITY REQUIREMENTS FOR ARP MEMBERS
ARP members who meet the following requirements are eligible for the 2009 RIP:
If these eligibility requirements are met, a full-time ARP member will receive the sum of six thousand dollars ($6,000) in three equal annual installments of two thousand dollars ($2,000) each - one in July, 2012; one in July, 2013; and one in July, 2014.
Part-time ARP members who meet the eligibility requirements for participation in the RIP will receive a prorated amount which reflects the portion of time that they worked compared to the full-time assignment for that position also payable in three equal annual installments each - in July, 2012, July, 2013 and July, 2014.
III. ADMINISTRATION AND IMPLEMENTATION OF ARP RIP PROVISIONS
Following notification by the ARP member of his or her intention to retire under the RIP, the agency and the member must complete the following for submission to the Retirement Services Division, Miscellaneous Systems Unit, 55 Elm Street, Hartford, CT 06106:
Upon receipt of properly completed retirement application forms (Form CO-898 and Form CO-744) and all required documentation, the Division will verify applicants' eligibility for the RIP and provide applicants with written verification of their eligibility.
ARP incentive payments represent taxable retirement income and will be reported as such to the State of Connecticut Department of Revenue Services and the Internal Revenue Service (IRS). Form 1099-R will be issued to the member in each of the affected years. ARP members should address any questions they have concerning the taxable nature of these payments to the IRS or their tax advisor.
Approximately three months prior to members' receipt of the first incentive payment in July 2012, the Division will contact the member at the address on file to request their completion of a Federal W-4P withholding tax form and a State CT-W4P withholding tax form.
IV. GENERAL ARP RETIREMENT INFORMATION
Agency human resources/payroll officers should also advise ARP members retiring under the RIP of the following:
V. COUNSELING SESSIONS
The Division is conducting group counseling sessions for all affected SERS Tier I, Tier II, Tier IIA and Hazardous Duty members from now until June 19, 2009. The Division has invited representatives from Retiree Health and ING to speak to potential retirees after the general presentation. While these sessions are primarily for SERS members, ARP members may wish to attend sessions to talk to the representative from ING concerning options and choices relating to their ING account(s) as well as for information relating to retiree health insurance.
Sign up for these sessions can only be made through the agency - an individual will not be able to sign up on his or her own for RIP related sessions. If an ARP member wishes to attend such a session, he or he must sign up for the session through the agency's Human Resource Department. Spouses and significant others generally cannot be accommodated at these counseling sessions except in isolated cases where the Agency determines that a special need exists for such attendance.
Please do not direct employees with inquiries concerning the RIP to this Division; instead, share with employees the information contained in this memorandum. General questions which agencies are unable to answer may be addressed to James Schnell, Coordinator of the ARP, at 860-702-3508.
Very truly yours,
STATE EMPLOYEES RETIREMENT COMMISSION
NANCY WYMAN, SECRETARY EX OFFICIO
Mark E. Ojakian, Deputy Comptroller and Retirement
Services Division Director
Retirement Services Division
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