AN ACT AUTHORIZING TEACHERS WHO ARE MEMBERS OF THE TEACHERS' RETIREMENT SYSTEM TO CONTRIBUTE UP TO ONE-HALF THE COST OF RETIREMENT INCENTIVE PLANS ESTABLISHED BY BOARDS OF EDUCATION.

OFFICE OF FISCAL ANALYSIS

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Hartford, CT 06106 ¯ (860) 240-0200

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sHB-5723

AN ACT AUTHORIZING TEACHERS WHO ARE MEMBERS OF THE TEACHERS' RETIREMENT SYSTEM TO CONTRIBUTE UP TO ONE-HALF THE COST OF RETIREMENT INCENTIVE PLANS ESTABLISHED BY BOARDS OF EDUCATION.

AMENDMENT

LCO No.: 5525

File Copy No.: 585

House Calendar No.: 389

State Impact: None

Municipal Impact: None

Explanation

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

The final section of the amendment 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 preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly, solely for the purposes of information, summarization and explanation and does not represent the intent of the General Assembly or either House thereof for any purpose.