Connecticut Seal

General Assembly

File No. 221

    February Session, 2012

Substitute House Bill No. 5400

House of Representatives, April 2, 2012

The Committee on Labor and Public Employees reported through REP. ZALASKI of the 81st Dist., Chairperson of the Committee on the part of the House, that the substitute bill ought to pass.

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

Section 1

October 1, 2012

7-440

LAB

Joint Favorable Subst.

 

Municipalities

Effect

FY 13 $

FY 14 $

Municipalities participating in the Connecticut Municipal Employee Retirement System (CMERS)

Savings

$2.1 million

$5.3 million

Sources:

CMERS website and actuarial valuations

Yea

8

Nay

1

(03/20/2012)

TOP

1 Based on payroll data provided in the last full CMERS actuarial valuation as of July 1, 2008. Assumes total contribution rate remains constant.

2 PA 01-80 changed the benefit allowance for members covered by social security and reduced the pension vestment period from ten years to five years.

3 About one-fourth of public employees do not pay Social Security taxes on the earnings from their government jobs. Historically, Social Security did not require coverage of government employment because some government employers had their own retirement systems. In addition, there was concern over the question of the federal government's right to impose a tax on state governments. Nevertheless, these workers may still be eligible for Social Security benefits through their spouses' or their own earnings from other covered employment.

4 In lieu of a full valuation (the next to be completed as of July 1, 2012), this update rolled forward the system's liabilities, membership data, provisions, actuarial assumptions and methods from the previous year, and using updated asset information, determined the funding requirement and the funded status of the system.