Connecticut Seal

General Assembly

 

Raised Bill No. 6583

January Session, 2011

 

LCO No. 4353

 

*04353_______CE_*

Referred to Committee on Commerce

 

Introduced by:

 

(CE)

 

AN ACT CONCERNING PUBLIC EMPLOYEES BENEFITS SOLVENCY.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. (Effective from passage) (a) On or before January 1, 2012, the Connecticut State Employees Retirement Commission, established under section 5-155a of the general statutes, shall determine on an actuarial basis the amount required to insure on a whole life basis each state employee employed by the state as of January 1, 2012, and shall certify such amount to the Treasurer.

(b) On or before June 30, 2012, the Treasurer shall contract with an insurance company licensed to do business in the state, at a cost not to exceed the amount certified under subsection (a) of this section, to provide individual whole life insurance policies on each state employee employed by the state as of January 1, 2012. Each such policy shall designate the state as the sole beneficiary. The cost of such policies shall be paid from the State Employees Retirement Fund.

(c) All proceeds paid to the state as beneficiary of any policy purchased under subsection (b) of this section shall be paid to the Treasurer for deposit in the State Employees Retirement Fund.

This act shall take effect as follows and shall amend the following sections:

Section 1

from passage

New section

Statement of Purpose:

To create a mechanism for funding the state's pension obligations by allowing the Treasurer to use pension fund moneys to buy certain insurance premiums, the benefits of which shall return to the pension fund.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]