OLR Bill Analysis

SB 746

AN ACT AMENDING THE MUNICIPAL EMPLOYMENT RETIREMENT SYSTEM FOR NEWLY HIRED EMPLOYEES.

SUMMARY

Beginning with municipal employees hired on or after October 1, 2017, this bill excludes overtime pay from the employee's retirement calculation for members of the Connecticut Municipal Employees Retirement System (CMERS). Under current law, overtime pay is counted in the calculation towards annual pay, which is one of the factors used to determine a retirement benefit.

Under the bill, pay counted toward retirement includes salary, wages or earnings of the employee, including workers' compensation payments and the monetary value, as determined by the state Retirement Commission, of any board, lodging, fuel, or laundry provided to the employee.

It is not clear whether the new provision would apply under an existing union contract of a bargaining unit that is part of CMERS. Presumably, the new provision would be applied to future contracts agreed to after the bill's effective date.

EFFECTIVE DATE: October 1, 2017

BACKGROUND

CMERS

Established in statute, CMERS is the municipal retirement system administered by the state comptroller's office. Municipalities choose to join and CMERS includes over 200 employee groups from more than 80 municipalities and a number of other entities, including tax districts and local and regional boards of education (a single town may have separate groups for police officers, firefighters, general town employees, and housing authority employees in CMERS).

Split Committee (Pursuant to Joint Rule 5(c))

The House Labor and Public Employees Committee defeated a motion for a favorable report by a 5-4 vote.

COMMITTEE ACTION

Labor and Public Employees Committee

Senate Favorable

Yea

2

Nay

1

(03/09/2017)