This program is offered to assist you in estimating the cost of transferring your retirement plan participation from ARP to the SERS Hybrid Plan.
HYPE will provide you with an estimate of the cost to purchase past ARP service credit in the Hybrid Plan. If your current available assets are insufficient to purchase all of your service, HYPER will provide you with an estimate of the amount of service that can be purchased with your available assets (see below).
These estimates are based on a purchase date of September 30, 2018. The final cost to purchase past service will be determined when your application is processed using your actual date of transfer, audited service credit and highest annual earnings and could be either higher or lower than this estimate as a result of any difference between these factors and those used in calculating your estimate. This transfer cost estimate is subject to audit and correction by the Retirement Services Division prior to the completion of the purchase.
Important Note: These programs are not connected to your earnings or service records. The accuracy of your estimate will be dependent upon the accuracy of the information you provide. Please read the following information prior to using these programs for the first time. Any questions you have regarding this information should be directed to your agency's Human Resources office. You must contact your agency Human Resources office if you need assistance compiling your years and months of state service and / or your highest annual compensation.
To proceed, you will need to have the following information:
For the purpose of this program, if you are a part-time employee, your service will be treated on a date to date basis. For example, if you have worked part-time for 10 years you would enter 10 years.
This is the period of twelve consecutive months' salary which results in your highest amount of compensation at any time during your employment. For the purpose of this program, if you work part-time, the actual salary you received should be used. You must see your agency human resource office if you need assistance with this.
Limits on compensation may apply to members whose highest annual salary exceeds $275,000. If your highest twelve month compensation exceeds this amount, enter $275,000 for estimate purposes. Further information regarding this limit is available in your agency.
You must first use ARP funds to purchase your past ARP service credit. You may use any funds you have in the TIAA Traditional Fixed Account but you are not required to. However an additional cost will be incurred when using these funds due to the restrictions connected with their withdrawal. If your funds in ARP are insufficient to purchase your current service balance, you may also use monies from your Section 457 deferred compensation plan or your Section 403(b) retirement savings plan once you have depleted your ARP monies with the exception of your TIAA Traditional Fixed Account monies. In no event will you be allowed to purchase more service than you have accrued with the State of Connecticut as an ARP participant as of the date of the actual transfer. You must contact Prudential, and TIAA with regard to all questions concerning the amount of money you have in your ARP accounts.
Important Information Concerning TIAA Traditional Fixed
Account Monies. If you chose to use TIAA Traditional Fixed Account monies,
also known as encumbered funds, the total amount of monies required for your
full purchase of service will be increased based on the discount rate. The
cost provided by this estimator will not include that additional expense.
Click here for instructions and examples on how to estimate the additional
expense you will incur by using these encumbered funds.
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