OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 ↓ (860) 240-0200
AN ACT CONCERNING OPERATORS OF ATHLETIC ACTIVITIES, COACHES AND REFEREES AND THE EMPLOYER-EMPLOYEE RELATIONSHIP.
LCO No.: 6242
File Copy No.: 42
House Calendar No.: 67
OFA Fiscal Note
FY 17 $
FY 18 $
Teachers' Retirement Bd.
Teachers' Retirement Fund - Potential Cost
Municipal Impact: None
The amendment allows a member of the Connecticut Teachers Retirement System (TRS) with service as a member of the General Assembly to purchase up to four years of additional credited service in the TRS.
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 TRS unfunded liability is increased by the remaining half. On average, the unfunded liability of the TRS will increase by $8,000 for each year of additional service credit purchased.
There are over 50,000 active teachers in the TRS. It is not known how many teachers have service that qualifies under the amendment and would purchase the additional credit.
The state's contribution to the TRS in FY 17 will not be impacted as it was determined based on the June 30, 2014 valuation.1 The fiscal impact of any purchases related to the amendment made by June 30, 2016 will be part of the June 30, 2016 valuation used to calculate the state's contribution for FY 18 and FY 19.
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.
1 The June 30, 2014 valuation showed that the TRS has assets of $15.5 billion, liability of $26.3 billion and unfunded liability of $10.8 billion resulting in a funded ratio of 59%.