
July 26, 2006 |
2006-R-0463 | |
ABILITY TO EARN STATE RETIREMENT CREDIT WHILE IN TOWN ELECTED OFFICE | ||
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By: John Moran, Principal Analyst | ||
You asked if state retirement statutes allow a legislator who leaves the General Assembly to take an elected, paid town office (such as mayor) to continue to build credit toward his state retirement based on his time in the local office. You also wanted to know if the person's local salary is used to calculate his retirement benefit if that salary is higher than his state salary.
State law allows a legislator, or any state employee, who is elected to a town office to choose to remain a member of the state employee retirement system and earn up to 10 years of credit towards a state retirement while holding the municipal office (CGS § 5-181b). He must continue to make the necessary employee contributions to his retirement plan while in that office (this applies to the Tier I and Tier IIA plans).
The employee cannot use the municipal time being credited for his state retirement toward any other retirement plan.
An employee's retirement benefit is based on his highest three earning years regardless of whether they are with the state or a municipality. The average of an employee's three highest earning years is used as a factor in calculating the employee's retirement benefit. The higher the final average, the higher the retirement benefit.
JM: dw