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CONNECTICUT STATE EMPLOYEES RETIREMENT SYSTEM
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TYPES OF RETIREMENT
WHEN YOU MAY RETIRE AND RECEIVE BENEFITS
Normal Retirement
Your normal retirement date will be the first of any month on or after you are age 63 if you have at least 25 years of vesting service or age 65 if you have at least 10 but less than 25 years of vesting service.
Early Retirement
If you have at least 10 years of vesting service, you can receive retirement benefits if you retire on the first of any month on or following your 58th birthday.
Hazardous Duty Retirement
You may retire with a benefit on the first of any month on or after you have completed 25 years of credited service while a hazardous duty member or after attainment of age 50 if you have completed at least 20 years of credited service while a hazardous duty member.
The time you are away from your hazardous duty job because of an approved eligible leave of absence, military service or qualifying non-state employment may count toward your years of credited service as a hazardous duty member provided:
For detectives, chief inspectors or inspectors in the Division of Criminal Justice or chief detectives in any other division, certain prior service as a sworn member of a municipal police department, if purchased, can count toward the twenty year minimum requirement for hazardous duty benefits, under certain circumstances.
Disability Retirement
If you become permanently disabled and have 10 years of vesting 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. Note: Prior military service cannot be used for eligibility or calculation purposes for a disability retirement.
Important Note Concerning Workers Compensation and Retirement: Receipt of
workers compensation disability payments under Connecticut General Statutes (CGS),
Section 5-142(a) may prevent you from receiving any retirement benefits until
the payments end - receipt of section 5-142(a) payments may stop your SERS
retirement benefit. This provision is applicable to all types of retirement -
normal, early, hazardous duty or disability.
NORMAL RETIREMENT
YOUR BENEFIT IS BASED ON A FORMULA
Eligibility Requirements
You are eligible for normal retirement benefits on the first of any month on which or after you attain:
OR
The Benefit Formula
For retirement income calculation purposes, your credited service is used in the formula.
Your basic annual retirement benefit equals:
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Keep in mind your credited service includes fractions of a year, based on completed months of service. The above chart provides you with your annual benefit. To determine what your basic monthly benefit will be, divide your annual retirement by 12.
If you retire in the first six months of the year, your benefit will not be less than the benefit you would have received had you retired on the previous December 31st.
On-line benefit estimators are available on the OSC website to help you determine your estimated retirement benefit. You are responsible for entering the relevant data (age, length of service, salary, etc.) and the calculator will produce an estimated benefit by option factor. You may need help from your agency Human Resources or Payroll Officer to determine ?high? salary or service credit information. The benefit estimators can be found on the OSC website under ?Employee Resources? or at the following link: http://osc.ct.gov/empret/indxwork.htm
Reminder: Pursuant to the 2011 SEBAC agreement the earnings breakpoint is under
review.
EARLY RETIREMENT
YOU MAY RETIRE WITH A BENEFIT IF YOU HAVE 10 YEARS OF VESTING SERVICE AND ARE AT LEAST AGE 58
How Your Benefit is Figured
Your basic early retirement benefit is first figured with the same formula used for a normal retirement benefit. Your average salary and years of credited service, as of your early retirement date, are used in the calculations.
Your basic normal benefit amount is then reduced by half of one percent (.005) for each month you retire prior to your attaining age 63 if you have at least 25 years vesting service, or age 65 if you have at least 10 but less than 25 years vesting service.
These reductions are required because your benefits are expected to be paid over a longer time period.
An Example
Suppose you retire effective July 1, 2021 on your 63rd birthday with at least 10 years vesting service. Let's assume your basic monthly benefit at normal retirement would be $500. This basic benefit would then be reduced by one half of one percent for each month you receive a benefit before your 65th birthday, as follows:
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Your basic early retirement benefit at age 63 would be $440.00 per month.
HAZARDOUS DUTY RETIREMENT
YOU MAY RETIRE WITH A BENEFIT AT ANY AGE IF YOU HAVE 25 YEARS OF HAZARDOUS
DUTY SERVICE OR AT AGE 50 IF YOU HAVE AT LEAST 20 YEARS OF HAZARDOUS DUTY
SERVICE
Definition Of Hazardous Duty
You are considered a hazardous duty member if you are an employee working:
The Hazardous Duty Appendix was created as a result of the 1988 - 1994 Pension Arbitration Award and lists all state job classifications which have been designated as covered under the hazardous duty provisions of the State Employees Retirement System. In some circumstances the job classifications may be covered under hazardous duty provisions only when used at certain state agencies and facilities.
The Hazardous Duty Appendix is available on the OSC website at the following link: http://osc.ct.gov/rbsd/hazduty/index.html
How Your Benefit Is Figured
If you qualify for a hazardous duty retirement, your basic annual benefit will be calculated as follows:
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To determine what your basic monthly income would be, divide your basic annual retirement income by 12.
On-line benefit estimators are available on the OSC website to help you determine your estimated hazardous duty retirement benefit. You are responsible for entering the relevant data (age, length of service, salary, etc.) and the calculator will produce an estimated benefit by option factor. You may need help from your agency Human Resources or Payroll Officer to determine ?high? salary or service credit information. The benefit estimators can be found on the OSC website under ?Employee Resources? or at the following link: http://osc.ct.gov/empret/indxwork.htm
Important Note: The annual retirement benefits payable from Tier III are subject
to the dollar limit imposed by Section 415(b). The 2011 calendar year benefit
limit is $195,000 for members aged 62 to 65; the 2012 calendar year benefit
limit is $200,000 for members aged 62 to 65. However the benefit limit is
adjusted downward for retirements beginning before age 62. Although special
rules apply under Section 415(b) for certain "qualified police and
firefighters", you should be aware that many of the classifications designated
as hazardous duty under SERS are not considered "qualified police and
firefighters" and are subject to the Section 415(b) benefit limitation for
regular governmental employees which is significantly lower for employees
retiring before age 50.
If You Leave State Service Before Meeting The Eligibility Requirements For A Hazardous Duty Benefit
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 retirement benefits. Contributions in excess of those required for an
early, normal, or vested rights retirement benefit will be refunded to the
member following retirement. Upon completion of the appropriate refund
application form, terminated vested members may receive a refund of the excess
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.
DISABILITY RETIREMENT
YOU MAY RECEIVE RETIREMENT BENEFITS IF YOU BECOME PERMANENTLY DISABLED
Types of Disability
There are two types of disability retirement available to eligible SERS members: a service connected disability (SCD) and a non-service connected disability (NSD) benefit.
Disability Standard
A member is disabled and eligible to receive a disability retirement benefit for the first twenty-four months if he or she is permanently unable to continue to render the service in which he has been employed: that is the employee is unable to perform the duties of his occupation. After 24 months, the standard for disability retirement changes and the disability retirement continues thereafter only if such member is totally disabled for any suitable and comparable job. ?Suitable and comparable? can refer to any job that a disability retiree is capable of performing considering his age, education, physical limitations, vocational skills, and experience.
Disability Retirement Application Process
To apply for a disability retirement you must contact the Human Resources or Payroll Office of your employing agency to request the preparation of your Application for Retirement Benefits and other related retirement forms as described under ?The Application Process? in the Section of this SPD entitled WHEN YOU ARE READY TO RETIRE. You will also need to provide a form entitled "Disability Retirement Application Medical Report" as completed by your treating physician, 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 completed application is then forwarded to the Retirement Services Division.
The determination of eligibility for disability retirement benefits is made by
the Medical Examining Board (MEB). The Retirement Services Division does not
determine whether or not a member is disabled. The Division, on behalf of the
Medical Examining Board (MEB), accepts applications for disability retirement
with appropriate medical documentation. It is the member?s responsibility to
show that he or she is disabled under the standard for disability retirement and
to ensure that all medical documents, reviews, records and reports necessary to
support his or her claim for disability retirement are properly submitted to the
MEB.
The MEB performs medical record(s) review with regard to applications for
disability retirement. The MEB may conduct reexaminations at any time to
determine continuance of disability. The MEB using its medical judgment may
believe or disbelieve any evidence presented before it so long as its final
determination is supported by the evidence. The MEB may also make a
determination as to whether a disability is service connected. Findings and
determinations made by the MEB may be made without holding a hearing and solely
on the basis of a "record review."
It is important to note that due to the number of applicants, it may take 3-6 months before a disability retirement application can be reviewed by the MEB.
Assuming your disability retirement application is approved, your entitlement to a continued disability benefit is reviewed again after you receive benefits for 24 months. The MEB will require updated medical records and review continued eligibility under the ?suitable and comparable? standard. That is, after 24 months you must show that you are disabled from any and all comparable positions for which you would be suited for by experience and training. You must submit proof of continuing disability at the request of the Retirement Services Division.
How Your Disability Benefit is Calculated
There are several components used in the determination of the amount of your SERS disability retirement benefit: the statutory benefit, the 100% maximum, the 80% maximum and the 60% minimum.
The "Statutory Benefit"
The statutory benefit is the basic benefit calculated prior to the application of the minimum or maximum rules or any offsets.
If you qualify for a disability retirement, the following formula is used to compute your basic annual benefit:
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To determine what your basic monthly benefit will be, divide by 12.
Your disability retirement, either service or non-service connected, is subject to certain offsets. Those offsets are: (1) Social Security regular and disability (SSDI) benefits (individual and family Social Security disability payments); (2) most workers compensation payments and (3) outside earnings (where you work or earn income from another employer while collecting a disability retirement benefit from SERS).
It is important to note that these benefits are not always "dollar for dollar" offsets to your SERS retirement benefit but rather are just one component used in determination of your benefit. Therefore, your disability retirement may start with one monthly benefit amount and then be reduced if and when you receive any type of social security benefits or workers compensation payments and increase (or further decrease) due to changes in those benefits. Workers compensation benefits alone may not reduce your benefit but when coupled with SSDI payments may severely reduce or even eliminate in its entirety your SERS monthly retirement benefit.
It is your duty and obligation when receiving a disability retirement benefit to promptly notify the Retirement Services Division upon receipt of any social security income, workers compensation payment or outside earnings. Failure to do so will cause an overpayment of your retirement benefit and repayment of the amount through a reduction of your retirement benefit.
Important Note: Receipt of workers compensation disability payments under Connecticut General Statutes (CGS), Section 5-142(a) may prevent you from receiving any retirement benefits until the payments end - receipt of section 5-142(a) payments may stop your SERS retirement benefit.
The "100% Maximum" Rule
There is a maximum benefit limitation you can receive with respect to the combined income from your SERS disability benefit, individual and family Social Security disability benefits, workers compensation payments and outside earnings. You must receive outside earnings for this rule to apply.
The total amount you may receive from these sources, combined with your Tier III benefit, cannot be more than 100% of your average salary or 100% of your salary at the time of disability, if higher.
If your total benefits exceed the 100% maximum, your Tier III benefit will be reduced. The reduction will be the amount needed to bring the benefit total down to the 100% maximum.
If you are receiving Social Security disability benefits or workers compensation payments but no outside earnings, the 80% maximum and the 60% minimum rules apply.
The "80% Maximum" Rule
There is a maximum benefit limitation a disability retiree can receive with respect to the combined income from a SERS disability benefit, individual and family Social Security disability benefits, and workers compensation payments.
The total amount you may receive from these sources, combined with your Tier III 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 III benefit will be reduced. The reduction will be the amount needed to bring the benefit total down to the 80% maximum.
If you do not receive social security or workers compensation payments, the 80% rule will not apply.
The "60% Benefit"
As a SERS member your combined income from a SERS disability benefit, individual and family Social Security disability benefits, and workers compensation payments cannot be less than 60% of your rate of salary (base salary of office) at the time your disability occurred.
This is a minimum benefit using combined income therefore your receipt of any Social Security benefit (including but not limited to "normal" social security benefit at age 65) or workers compensation following your receipt of SERS disability retirement benefits will usually reduce your SERS benefit.
Important Note: As long as you remain disabled, your disability retirement benefit will never revert to a normal retirement benefit.
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 III 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 30 years. However, if your service at time of disability is greater than 30, you will receive credit for your total years of service before your disability.
Special Note
In the event that the Retirement Medical Examining Board determines that you are not permanently disabled from performing your job duties, the agency where you were last actively employed will be required to return you to employment, if you so choose. This assumes there are no other employment related reasons for your separation.
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