OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

SB-746

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


OFA Fiscal Note

State Impact: None

Municipal Impact:

Municipalities

Effect

FY 18 $

FY 19 $

Municipalities participating in the Connecticut Municipal Employees' Retirement System (CMERS)

Savings

See Below

See Below

Explanation

The bill does not result in a savings to CMERS participating municipalities in FY 18 and FY 19 as the employer contribution rates have been established pursuant to the most recent CMERS actuarial valuation as of June 30, 2016. If a new valuation is completed reflecting this change and if permitted by the terms of individual municipal union contracts, there will be savings to participating municipalities. The savings in the near term is not anticipated to be significant as it only applies to new hires.

The Out Years

The bill will result in a savings to CMERS participating municipalities over the long term and will be reflected in the employer contribution rates reported in future actuarial valuations.