AN ACT CONCERNING THE COMMENCING DATE OF BENEFIT PAYMENTS, OPTIONS OF CERTAIN SURVIVING SPOUSES AND HEALTH BENEFIT PLANS UNDER THE TEACHERS' RETIREMENT SYSTEM.

OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 ¯ (860) 240-0200

http: //www. cga. ct. gov/ofa

sHB-5726

AN ACT CONCERNING THE COMMENCING DATE OF BENEFIT PAYMENTS, OPTIONS OF CERTAIN SURVIVING SPOUSES AND HEALTH BENEFIT PLANS UNDER THE TEACHERS' RETIREMENT SYSTEM.

Agency Affected	Fund-Effect	FY 07 $	FY 08 $
Teachers' Retirement Bd.	Teachers' Retirement Fund - Cost	Indeterminate	Indeterminate

Municipalities	Effect	FY 07 $	FY 08 $
Various Municipalities	Potential Savings	Indeterminate	Indeterminate

Explanation

This bill makes three technical changes that conform the Teachers Retirement statutes to current practice. These provisions have no fiscal impact.

The final section of the bill allows certified school social workers to purchase additional credited service in the Teachers' Retirement System (TRS), not to exceed ten years. As is the case with the existing purchase provisions, the teacher must pay one-half of the actuarial value of the additional credited service and the state bears the cost of the remaining half. On average, the unfunded liability of the TRS will increase $7,000 for each year of additional service credit. While there are 750 school social workers, it is not known how many of these employees are eligible to purchase retirement credit for service as social work assistants from 1969 through 1986. The exact fiscal impact related to this change must be calculated by the TRS actuary.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.