OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 ↓ (860) 240-0200

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

sSB-24

AN ACT CONCERNING EDUCATIONAL COMPETITIVENESS.

AMENDMENT

LCO No.: 5293

File Copy No.: 416

Senate Calendar No.: 303

OFA Fiscal Note

State Impact:

Municipal Impact: None

Explanation

The amendment allows public school teachers with service in nonpublic or parochial schools to purchase up to five years additional credited service in the Teachers' Retirement System (TRS) . The purchase provision requires that teachers pay one-half and the state pay one-half the actuarial value of the additional credited services.

There are over 50, 000 active teachers who are members of the TRS. It is not known at this time how many teachers have service in nonpublic or parochial schools but it is estimated to be several hundred. The average cost of one year of additional credited service is $16, 000 ($8, 000 teacher cost and $8, 000 state cost) . Based on the state average of 2.5 years of service purchased; for every 100 teachers who purchase nonpublic or parochial school service the cost to the TRS would be $2.0 million

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 chamber thereof for any purpose. In general, fiscal impacts are based upon a variety of informational sources, including the analyst's professional knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.