Sec. 10-183g. Benefit rates. Commencing and ending dates.
Sec. 10-183g. Benefit rates. Commencing and ending dates. (a) Normal retirement. The normal retirement benefit shall be two per cent times the number of years
of full-time credited service and a proportional fraction of two per cent times the number
of years of credited service at less than full-time multiplied by average annual salary.
In no event, however, shall such benefit exceed seventy-five per cent of such salary or
be less than three thousand six hundred dollars.
(b) Proratable retirement. The proratable retirement benefit shall be computed as
follows: Average annual salary multiplied by (1) number of years of credited service,
excluding all additional credited service, except service described in subdivisions (3),
(8) and (10) of subsection (b) of section 10-183e, multiplied by the applicable percentage
based on age and service as determined from the table below, and (2) number of years
of all additional credited service not used in subdivision (1) of this subsection multiplied
by one per cent.
TABLE
AGE OF RETIREMENT
Years Of
Connecticut
Service
60
61
62
63
64
65
66
67
68
69
70
101.01.01.01.01.01.01.01.01.01.01.0
111.11.11.11.11.11.11.11.11.11.11.1
121.21.21.21.21.21.21.21.21.21.21.2
131.31.31.31.31.31.31.31.31.31.31.3
141.41.41.41.41.41.41.41.41.41.41.4
151.51.51.51.51.51.51.51.51.51.51.5
161.61.61.61.61.61.61.61.61.61.61.6
171.71.71.71.71.71.71.71.71.71.71.7
181.81.81.81.81.81.81.81.81.81.81.8
191.91.91.91.91.91.91.91.91.91.91.9
202.02.02.02.02.02.02.02.02.02.02.0
(c) Early retirement. The early retirement benefit shall be computed in the same
manner as the normal retirement benefit, then actuarially reduced, on the basis of
early retirement tables adopted from time to time by the board, for each month early
retirement precedes the minimum age at which the member could have retired with
a normal retirement benefit. Such minimum age shall be such member's actual age
at retirement plus the lesser of (1) the difference between such age and age sixty, or
(2) the difference between thirty-five years and the sum of such member's years of
Connecticut public school service plus all purchased leaves of absence, military and
out-of-state public school service. On and after July 1, 1999, any revisions to the
early retirement tables shall be submitted to the Office of Policy and Management
and the joint standing committee of the General Assembly having cognizance of
matters relating to appropriations and the budgets of state agencies within one month
of their adoption by the board. Any such revisions shall be accompanied by an
actuarial certification of the costs associated with such revisions.
(d) Deferred vested retirement. The deferred vested retirement benefit shall be
computed as follows: Average annual salary multiplied by (1) number of years of
credited service, excluding all additional credited service, except service described
in subdivisions (3), (8) and (10) of subsection (b) of section 10-183e, multiplied by
two per cent, then actuarially reduced in the same manner as the early retirement
benefit if the years of service which could have been rendered were less than twenty
years by age sixty or by the subsequent date of retirement, and (2) number of years
of all additional credited service not used in subdivision (1) of this subsection
multiplied by one per cent.
(e) Disability retirement. Repealed by P.A. 79-541, S. 5, 6.
(f) Lump sum payment or annuity. In addition to a retirement benefit computed
under subsections (a) to (d), inclusive, of this section and under subsections (a) to
(g), inclusive, of section 10-183aa, a member shall receive a lump sum payment equal
to the member's accumulated one per cent contributions withheld prior to July 1,
1989, with credited interest. In lieu of such lump sum, the member may elect to
receive an actuarially equivalent annuity for life. Such lump sum or annuity shall be
paid, or commenced to be paid, when the first payment of the other retirement benefit
is made.
(g) Commencing date for payment. A member's complete formal application
for retirement, if sent by mail, shall be deemed to have been filed with the board on
the date such application is postmarked. No benefit computed under subsections (a)
to (d), inclusive, of this section and under subsections (a) to (g), inclusive, of section
10-183aa shall become effective until the end of the calendar month of the filing by
the member with the board of a complete formal application for retirement. Such
benefit shall accrue from the first day of the month following such calendar month
and payment of such benefit in equal monthly installments shall commence on the
last day of the month in which such benefit begins to accrue. The initial payment of
such benefit may be made not later than three months following the effective date
of retirement, provided such payment shall be retroactive to such effective date. Upon
a finding that extenuating circumstances relating to the health of a member caused
a delay in the filing of the member's complete formal application, and such application
is filed on or after July 1, 1986, the board may deem such application to have been
filed up to three months earlier than the actual date of the filing. Upon a finding that
extenuating circumstances related to the health of a member caused a delay in the
filing of an election pursuant to subsection (g) of section 10-183aa, and such election
is filed on or after July 1, 1986, the board may deem such election to have been filed
as of the date such member's benefits would otherwise have been converted to a
normal retirement allowance, provided such member's disability allowance became
effective on or before November 1, 1976, and such member attained the age of sixty
on or after August 1, 1984.
(h) Termination at death of member. A benefit computed under subsections
(a) to (d), inclusive, of this section and under subsections (a) to (g), inclusive, of
section 10-183aa shall continue until the death of the member. If twenty-five per cent
of the aggregate benefits paid to a member prior to death are less than such member's
accumulated regular contributions, including any one per cent contributions withheld
prior to July 1, 1989, and any voluntary contributions plus credited interest, the
member's designated beneficiary shall be paid on the death of the member a lump
sum amount equal to the difference between such aggregate payments and such
accumulated contributions plus credited interest that had been accrued to the date
benefits commenced.
(i) Elections of options. In lieu of a benefit computed under subsections (a) to
(d), inclusive, of this section and under subsections (a) to (g), inclusive, of section
10-183aa, a member may elect one of the options described in section 10-183j or
any other actuarially equivalent option which the board may offer from time to time.
(j) Cost of living allowance for members retiring prior to September 1, 1992.
Beginning the first day of January or July which follows nine months in retirement,
a retired member who retired prior to September 1, 1992, or a member's successor
beneficiary, except a person receiving survivor's benefits, shall be eligible for an
annual five per cent cost of living allowance on any benefit except a benefit based
upon such member's one per cent contributions or voluntary contributions. Such cost
of living allowance shall be computed on the basis of the retirement benefits to which
such retired member or successor beneficiary was entitled on the last day of the
preceding December or June except benefits based upon one per cent or voluntary
contributions. Such member's successor beneficiary means any person, other than
such member, receiving benefits as the result of the election of a period certain option
or a coparticipant option, including an election for such an option by a surviving
spouse under subsection (d) of section 10-183h. The right to such allowance, or any
portion thereof, may be waived by the person entitled thereto at any time. Any waiver
shall remain in effect until the first day of the month following such person's death
or the filing with the board of a written notice of cancellation of the waiver. Any
allowance waived shall be forever forfeited. If on any subsequent first day of January
or July the Teacher's Retirement Board determines that the National Consumer Price
Index for urban wage earners and clerical workers for the twelve-month period ending
on the last day of the preceding November or May has increased less than the cost
of living allowance provided under this subsection, the cost of living allowance
provided by this subsection shall be adjusted to reflect the change in such index
provided such cost of living allowance shall not be less than three per cent.
(k) Cost of living allowance for members retiring on or after September 1,
1992. Beginning the first day of January or July which follows nine months in
retirement, a retired member who retired on or after September 1, 1992, or a member's
successor beneficiary, except a person receiving survivor's benefits, shall be eligible
for an annual cost of living allowance calculated in accordance with the provisions
of subsections (l) or (m) of this section on any benefit except a benefit based upon
such member's one per cent contributions or voluntary contributions. Such cost of
living allowance shall be computed on the basis of the retirement benefits to which
such retired member or successor beneficiary was entitled on the last day of the
preceding December or June except benefits based upon one per cent or voluntary
contributions. Such member's successor beneficiary means any person, other than
such member, receiving benefits as the result of the election of a period certain option
or a coparticipant option, including an election for such an option by a surviving
spouse under subsection (d) of section 10-183h. The right to such allowance, or any
portion thereof, may be waived by the person entitled thereto at any time. Any waiver
shall remain in effect until the first day of the month following such person's death
or the filing with the board of a written notice of cancellation of the waiver. Any
allowance waived shall be forever forfeited.
(l) Calculation of cost of living allowance. (1) Beginning the first day of January
or July which follows nine months in retirement, a retired member who retired on
or after September 1, 1992, or a member's successor beneficiary, except a person
receiving survivor's benefits, shall be eligible for an annual cost of living allowance.
The cost of living allowance shall be calculated by using the percentage cost of living
adjustment granted by the Social Security Administration for the applicable year,
computed on the basis of the retirement benefits to which such retired member or
successor beneficiary was entitled on the last day of the preceding December or June
except benefits based upon one per cent or voluntary contributions, provided no cost
of living allowance shall exceed six per cent and provided further, if the total return
earned by the trustees on the market value of the pension assets for the preceding
fiscal year is less than eight and one-half per cent, any cost of living allowance
granted shall not exceed one and one-half per cent.
(2) A member entering the retirement system commencing on or after July 1,
2007, or such member's successor beneficiary, except a person receiving survivor's
benefits, shall, beginning the first day of January or July that follows nine months
in retirement, be eligible for an annual cost of living allowance as follows: The cost
of living allowance shall be calculated by using the percentage cost of living adjustment
granted by the Social Security Administration for the applicable year, computed on
the basis of the retirement benefits to which such retired member or successor beneficiary was entitled on the last day of the preceding December or June, as applicable,
except benefits based upon one per cent of voluntary contributions, provided (A) no
cost of living allowance shall exceed five per cent, and (B) if the total return earned
by the trustees on the market value of the pension assets for the preceding fiscal year
is less than eight and one-half per cent, any cost of living allowance granted shall
not exceed one per cent, if such total return for the preceding fiscal year is greater
than eight and one-half per cent but less than eleven and one-half per cent, any cost
of living allowance granted shall not exceed three per cent, and if such return exceeds
eleven and one-half per cent, any cost of living allowance granted shall not exceed
five per cent.
(m) Proportionate reduction of cost of living allowance. Repealed by P.A. 07-186, S. 14.
(n) Cost of living adjustment reserve account. Repealed by P.A. 07-186, S. 14.
(o) Single increase in benefits on January 1, 1988. On January 1, 1988, each
eligible retired member who had rendered at least twenty-five years of full-time
service prior to normal retirement under the provisions of subsection (a) of section
10-183f, or such member's successor beneficiary, as defined in subsection (j) of this
section, shall receive a single increase in retirement benefits provided under this
chapter. Such increase shall be paid to such eligible members or successor beneficiaries
whose monthly benefit as of December 31, 1987, before any reduction for an optional
benefit payment plan, is less than eight hundred dollars, and shall be sufficient to
increase such monthly benefit to eight hundred dollars.
(p) Single increase in benefits on January 1, 1991. On January 1, 1991, each
eligible retired member who had rendered at least twenty-five years of full-time
service at least twenty years of which were service in the public schools of Connecticut
prior to early retirement before January 1, 1976, under the provisions of subsection (c)
of section 10-183f, or such member's successor beneficiary, as defined in subsection (j)
of this section, shall receive a single increase in retirement benefits provided under
this chapter. Such increase shall be paid to such eligible members or successor
beneficiaries whose monthly benefit as of December 31, 1990, before any reduction
for an optional benefit payment plan, is less than eight hundred dollars, and shall be
sufficient to increase such monthly benefit to eight hundred dollars.
(q) Single increase in benefits on January 1, 1999. On January 1, 1999, each
eligible retired member who had rendered at least twenty-five years of full-time
service, or such member's successor beneficiary, as defined in subsection (j) of this
section, shall receive a single increase in benefits provided under this chapter. Such
increase shall be sufficient to increase the monthly benefit of such eligible members
or successor beneficiaries, whose monthly benefit as of December 31, 1998, before
any actuarial reduction for early retirement or for an optional benefit payment plan,
is less than twelve hundred dollars and shall be sufficient to increase such monthly
benefit to twelve hundred dollars.
(r) Benefit limit and increase. No retirement benefit payable under this chapter
shall exceed the maximum dollar limit in effect under Section 415(b) of the Internal
Revenue Code for the applicable limitation year, as increased in subsequent years
pursuant to Section 415(d) of the Internal Revenue Code. A subsequent annual increase
shall apply to a member if the increase becomes effective after the member retires
or, if such increase becomes effective before a member retires, after the date on which
such benefit begins to accrue.
(P.A. 78-208, S. 6, 35; 78-228, S. 3, 8; P.A. 79-459, S. 2; 79-541, S. 5, 6; 79-625, S. 3, 6; P.A. 80-282; 80-303; 80-408, S. 2; P.A. 81-290; P.A. 82-91, S. 5, 38; P.A. 84-451, S. 1; P.A. 87-381, S. 1; P.A. 89-207, S. 2; 89-342, S. 2, 5; P.A.
90-308, S. 1, 15; P.A. 92-205, S. 8, 12; May Sp. Sess. P.A. 92-14, S. 1, 11; P.A. 94-159, S. 1, 2; P.A. 98-251, S. 2, 7; June
Sp. Sess. P.A. 99-1, S. 48, 51; P.A. 00-187, S. 67, 75; P.A. 03-232, S. 3, 4, 8; P.A. 06-190, S. 3; P.A. 07-186, S. 10, 14;
P.A. 08-76, S. 3, 4.)
History: P.A. 78-228 amended Subsec. (j) raising cost of living allowance from 3% to 5%, establishing basis of computation and allowing adjustments based on National Consumer Price Index; P.A. 79-459 amended Subsec. (g) to establish
filing date of application as date postmarked when application sent by mail; P.A. 79-541 repealed Subsec. (e) re disability
retirement; P.A. 79-625, in Subsec. (d), replaced method of computation of deferred vested retirement benefit, i.e. "in the
same manner as the early retirement benefit", with complex formula; P.A. 80-282 deleted reference to repealed Subsec.
(e) and included reference to Sec. 10-183aa(a) to (g) in Subsecs. (f) to (i), inclusive; P.A. 80-303 amended Subsec. (a) to
distinguish between full and part-time credited service; P.A. 80-408 amended Subsec. (c) to delete "wartime" with reference
to military service; P.A. 81-290 made minor changes in wording of Subsec. (g); P.A. 82-91 added Subsec. (k) to provide
a single increase in retirement benefits commencing January 1, 1983: Percentage increases range from 25% for members
retired on or before December 31, 1954, to 2% for members retired on or after January 1, 1971, and before January 1,
1976; P.A. 84-451 amended Subsec. (j) to change consumer price index figures used on first day of January and July for
cost of living allowance adjustments from "previous twelve-month period" to "twelve-month period ending on the last
day of the preceding November or May"; P.A. 87-381 amended Subsecs. (b) and (d) to include substitute teaching service
in computation of proratable and deferred vested retirement benefit; added provision in Subsec. (g) authorizing board to
deem retirement application to have been filed up to three months earlier than actual filing date upon finding of filing delay
caused by health reasons; repealed provisions in Subsec. (k) re single increase in benefits commencing January 1, 1983,
and substituted provisions re increase in benefits commencing January 1, 1988; P.A. 89-207 amended Subsec. (a) to make
amount of benefit subject to limits mandated by Sec. 415 of the Internal Revenue Code; P.A. 89-342 amended Subsec. (f)
to limit use of accumulated 1% contributions for lump sum payment to contributions withheld prior to July 1, 1989; P.A.
90-308 added Subsec. (l) re single increase in benefits effective January 1, 1991; P.A. 92-205 amended Subsec. (j) to limit
applicability of cost of living allowance provisions to members who retired prior to September 1, 1992, inserted new
Subsecs. (k), (l), (m) and (n) re cost of living allowance for members retiring on or after September 1, 1992, and relettered
existing Subsecs. (k) and (l) accordingly; May Sp. Sess. P.A. 92-14 changed effective date of P.A. 92-205 but did not
affect the date applicable to this section; P.A. 94-159 amended Subsecs. (l) and (m) to change basis for calculation of cost
of living allowance from return earned on market value of pension assets for preceding "calendar" year to return earned
for preceding "fiscal" year and amended Subsec. (n) to change basis for calculation of amount credited to excess earning
account for calendar years commencing on and after January 1, 1995, from "calendar" to "fiscal" year, effective July 1,
1994; P.A. 98-251 added new Subsec. (q) re single increase in benefits, effective June 8, 1998; June Sp. Sess. P.A. 99-1
amended Subsec. (c) to require submittal of revisions to early retirement tables and actuarial certification, effective July
1, 1999; P.A. 00-187 amended Subsec. (g) to add provision re finding that extenuating circumstances relating to the health
of a member caused delay in the filing of an election under Sec. 10-183aa(g), effective July 1, 2000; (Revisor's note: In
2003 a reference in Subsec. (q) to "chapter 167a" was changed editorially by the revisors to "this chapter"); P.A. 03-232
made a technical change in Subsecs. (b) and (d), amended Subsec. (h) to substitute "member" for "retired member", to
change 5% contributions to "regular contributions, including any 1% contributions withheld prior to July 1, 1989, and any
voluntary contributions", and to add "that had been accrued to the date benefits commenced" following "plus credited
interest" and amended Subsecs. (m) and (n) to change the name of the "excess earnings account" to the "cost of living
adjustment reserve account", effective July 1, 2003; P.A. 06-190 amended Subsec. (g) to authorize initial benefit payment
to be made not later than three months following retirement effective date, and to require such payment to be retroactive
to such date, effective July 1, 2006; P.A. 07-186 amended Subsec. (l) to designate existing provisions as Subdiv. (1), delete
provision therein re annual cost of living allowance contingent upon actuarial certification that sufficient funds are available,
and add Subdiv. (2) re cost of living allowance, and repealed Subsecs. (m) and (n), effective July 1, 2007; P.A. 08-76
amended Subsec. (a) to eliminate reference to limits mandated by Sec. 415 of the Internal Revenue Code and added Subsec.
(r) re maximum dollar amount of retirement benefit to be paid under chapter, effective May 27, 2008.
See Sec. 1-2a re construing of references to "United States mail" or "postmark" to include references to any delivery
service designated by the Secretary of the Treasury pursuant to Section 7502 of the Internal Revenue Code of 1986 or any
successor to the code, as amended, and to any date recorded or marked as described in said Section 7502 by a designated
delivery service and construing of "registered or certified mail" to include any equivalent designated by the Secretary of
the Treasury pursuant to said Section 7502.
See Secs. 10-183aa, 10-183bb re disability retirement.
Subsec. (j):
Cited. 211 C. 464.