Summary of Required Payments
1.) Employee Contributions - are contributions deducted from each eligible employee's gross wages and forwarded monthly to CMERS.
2.) Employer Contributions - are contributions based upon the total payroll of gross pay received by all employees eligible for membership and forwarded monthly to CMERS.
Employer contribution rates are subject to change on July 1 of each year.
3.) Amortization Payments - are the payments made, over a specified period of time, for contributions due for service prior to participation or for unfunded accrued costs associated with prospective membership. Such payments are determined by the CMERS actuaries prior to CMERS participation. The payments are due once a year for a thirty-year period and are subject to adjustment based upon results of periodic actuarial valuation of the fund's experience. A lump sum payment of the total contributions due can be made in lieu of amortization payments. Municipalities may choose to amortize their UAL for fewer than the 30 year maximum if desired. The CMERS actuaries will calculate a new amortization.
4.) Administrative Assessment - is the proportionate share of the cost of the administration of the fund. For the 2007/2008 fiscal year the rate is anticipated to be $130.00 per person (active and retired).
Note: If any payment due for any liability incurred is not made within two months from the date due, interest shall be added to such payment at the prevailing rate of interest.
Initial Actuarial Valuation Fee Schedule
Fee for an initial actuarial valuation for determining computed cost of CMERS membership, to be paid by the municipality requesting the valuation, shall be as follows:
The above charges will be increased NOT MORE THAN 25% for estimates involving employer/employee contributions or annuities under a previous retirement system.
To determine the costs associated with CMERS participation, the municipality must forward a check to CMERS, in the appropriate amount based on the above fee schedule and made payable to the Cavanaugh Macdonald Consulting, LLC, 3550 Busbee Parkway, Suite 250, Kennesaw, GA 30144. The check should be sent with the completed Form CO-1074, entitled "Roster of Employees", to the following address: Office of the State Comptroller, Connecticut Municipal Employees Retirement System, 55 Elm Street, Hartford, CT 06l06.
Application Procedures to Effect Participation in the CMERS
I. By Resolution and Referendum (Connecticut General Statutes, Section 7-427)
II. By Collective Bargaining Agreement (Connecticut General Statutes, Section 7-474)
*Note: If the "municipality"is a district department of health, housing authority, regional planning agency, or supervision district board of education, there is no requirement for a referendum to effect participation.
Format for Resolution of Acceptance
Pursuant to Connecticut General Statutes, Section 7-427, the following format shall be used by a municipality accepting participation in the Connecticut Municipal Employees Retirement System, other than by collective bargaining agreement.
(Name of Municipality), a municipality as defined in 7-425 of the general statutes as amended, accepts part II of charter 113 of the general statutes, as amended, for participation in Fund B of the Connecticut Municipal Employees Retirement System as to (*) , but this acceptance shall not repeal, amend or replace, or affect the continuance of, any pension system established in this municipality by or under the authority of any special act.
(*) - Insert the appropriate statement from the following: