Sec. 10-183e. Credited service.
Sec. 10-183l. Teachers' Retirement Board. Valuation of fund.
Sec. 10-183b. Definitions. As used in this chapter, unless the context otherwise requires:
(1) “Actuarial reserve basis” means a basis under which the liabilities of the retirement system are determined under acceptable actuarial methods and under which assets are accumulated under a program designed to achieve a proper balance between the accumulated assets and the liabilities of the system.
(2) “Amortization of unfunded liabilities” means: (A) For fiscal years ending on or before June 30, 2019, a systematic program of annual payments determined as a level per cent of expected member annual salaries in lieu of a lump sum payment; and (B) for fiscal years ending on or after June 30, 2020, a systematic program of annual payments, transitioning equally over five consecutive fiscal years from a level per cent of expected annual member salaries to a level payment, in lieu of a lump sum payment.
(3) “Annual salary” means the annual salary rate for service as a Connecticut teacher during a school year but not including unused sick leave, unused vacation, terminal pay, coaching or extra duty assignments, unless compensation for coaching or extra duty assignment was included in salary for which contributions were made prior to July 1, 1971. In no event shall annual salary include amounts determined by the board to be included for the purpose of inflating the member's average annual salary. The inclusion in annual salary of amounts paid to the member, in lieu of payment by the employer for the cost of benefits, insurance, or individual retirement arrangements which in prior years had been paid by the employer and not included in the member's annual salary, shall be prima facie evidence that such amounts are included for the purpose of inflating the member's average annual salary. Annual salary shall not (A) include payments the timing of which may be directed by the member, (B) include payments to a superintendent pursuant to an individual contract between such superintendent and a board of education, of amounts which are not included in base salary, or (C) exceed the maximum amount allowed under Section 401(a)(17) of the Internal Revenue Code for the applicable limitation year, provided in no event shall the limitation under Section 401(a)(17) of the Internal Revenue Code apply to the annual salary of a member whose membership began prior to January 1, 1996, if such limitation would reduce the amount of the member's annual salary below the amount permitted for calculation of the member's retirement benefit under chapter 167a, without regard to the limitation under Section 401(a)(17) of the Internal Revenue Code. Annual salary shall include amounts paid to the member during a sabbatical leave during which mandatory contributions were remitted, provided such member returned to full-time teaching for at least five full years following the completion of such leave.
(4) “Average annual salary” means the average of the three highest annual salaries received as an active member.
(5) “Board” means the Teachers' Retirement Board.
(6) “Child” means a natural child, an adopted child, or a stepchild of a deceased member who has been a stepchild for at least one year immediately prior to the date on which the member died. A child is a “dependent child” of a deceased member if at the time of the member's death (A) the member was living with the child or providing or obligated to provide, by agreement or court order, a reasonable portion of the support of the child, and (B) the child (i) is unmarried and has not attained age eighteen, or (ii) is disabled and such disability began prior to the child's attaining age eighteen.
(7) “Contributions” means amounts withheld pursuant to this chapter and paid to the board by an employer from compensation payable to a member. Prior to July 1, 1989, “mandatory contributions” are contributions required to be withheld under this chapter and consist of five per cent regular contributions and “one per cent contributions”. From July 1, 1989, to June 30, 1992, “mandatory contributions” are contributions required to be withheld under this chapter and consist of five per cent regular contributions and one per cent health contributions. From July 1, 1992, to June 30, 2004, “mandatory contributions” are contributions required to be withheld under this chapter and consist of six per cent “regular contributions” and one per cent health contributions. From July 1, 2004, to December 31, 2017, “mandatory contributions” are contributions required to be withheld under this chapter and consist of six per cent regular contributions and one and one-fourth per cent health contributions. From January 1, 2018, to December 31, 2019, inclusive, “mandatory contributions” are contributions required to be withheld under this chapter and consist of seven per cent “regular contributions” and one and one-fourth per cent health contributions. On and after January 1, 2020, “mandatory contributions” are contributions required to be withheld under this chapter and consist of seven per cent “regular contributions” and one and one-fourth per cent health contributions, except that no health contributions shall be required for an employee of the state that (A) has completed the vesting service necessary to receive health benefits provided to retired state employees, and (B) does not participate in any group health insurance plans maintained for retired teachers. Nothing in this subdivision shall affect any other obligation of such a state employee to contribute to the state's retiree health care trust fund. “Voluntary contributions” are contributions by a member authorized to be withheld under section 10-183i.
(8) “Coparticipant” means a person who the member elects at the time of retirement to receive guaranteed lifetime benefits upon the death of the member.
(9) “Credited interest” means interest at the rate from time to time fixed by the board consistent with industry standards and practices. Such interest shall be applied to a member's account based on the balance as of the previous June thirtieth. Credited interest shall accrue on any mandatory contributions which were due but not remitted prior to the close of the school year for which salary was paid.
(10) “Current service” means service rendered in the current fiscal year.
(11) “Dependent former spouse” means a former spouse of a deceased member who (A) has in his or her care a dependent child of the deceased member; and (B) was receiving, or was entitled to receive, from the deceased member at the time of the death of the deceased member, at least one-half of his or her support; and (C) has not remarried; and (D) is the parent of the child or adopted the child while married to the member and before the child attained age eighteen or, while married to the member, both of them adopted the child before the child attained age eighteen.
(12) “Dependent parent” means a parent of a deceased member who (A) has reached the age of sixty-five; and (B) has not married after the death of the member; and (C) was receiving at least one-half of his or her support from the member at the time of the member's death and files proof of such support within two years of the date of the member's death; and (D) is not receiving, or entitled to a federal or state old age benefit based on the parent's own earnings, equal to or greater than the amount the parent would be entitled to as a dependent parent under this chapter. A “parent of a deceased member” is (i) the mother or father of a deceased member, (ii) a stepparent of a deceased member by a marriage entered into before the member attained age sixteen, or (iii) an adopting parent of a deceased member who adopted the deceased member before the member attained age sixteen.
(13) “Designated beneficiary” means a person designated on a form prescribed by the board by a member to receive amounts that may become payable under this chapter as the result of the member's death. If a designated beneficiary is not living at the time of the death of a member, the amounts that would have been payable to the designated beneficiary shall be paid to the member's estate.
(14) “Disabled” means the inability to perform any teaching service, whether or not such service is performed full-time or part-time, in a public or nonpublic school or a nonschool setting, on a volunteer basis or for compensation, within or without the state, or engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that (A) is permanent or can be expected to last continually for not less than twelve months from the onset of such impairment, or (B) can be expected to result in death or to be of long-continued and indefinite duration, except that during the first twenty-four months that a member is receiving a disability allowance, “disabled” means the inability to perform the usual duties of the member's occupation by reason of any such impairment.
(15) “Employer” means an elected school committee, a board of education, the State Board of Education, the Office of Early Childhood, the Technical Education and Career System, the Board of Regents for Higher Education or any of the constituent units, the governing body of the Children's Center and its successors, The University of Connecticut Board of Trustees, the E. O. Smith School, or any other activity, institution or school employing members.
(16) “Formal leave of absence” means any absence from active service in the public schools of Connecticut formally granted by a member's employer as evidenced by contemporary records of the employer, provided in the case of an absence due to illness, medical or other evidence of such illness may, at the discretion of the Teachers' Retirement Board, be accepted in lieu of evidence of the formal granting of a leave.
(17) “Formal application of retirement” means: (A) the member's application, birth certificate or notarized statement supported by other evidence satisfactory to the board, in lieu thereof, (B) records of service, if such records are required by the board to determine a salary rate or years of creditable service, (C) a statement of payment plan, including, if applicable, the fixed period of time selected by a member under Plan C or the coparticipant's share designated under Plan D, (D) in the case of an application for a disability benefit, a physician's, a physician assistant's or an advanced practice registered nurse's statement of health, and (E) any other documentation required by the board.
(18) “Funding” means the accumulation of assets in advance of the payment of retirement allowances in accordance with a board-approved actuarial methodology.
(19) “Member” means any Connecticut teacher employed (A) on, and compensated for, the first school day, in accordance with the member's contractual schedule, and (B) for an average of at least one-half of each school day after the first school day, except that no teacher who under any provision of the general statutes elects not to participate in the system shall be a member unless and until the teacher elects to participate in the system. A member teaching in a nonpublic school classified as a public school by the board under the provisions of this section may continue as a member as long as the member continues to be a teacher in such school even if the school ceases to be so classified. A former teacher who has not withdrawn his or her accumulated contributions shall be an “inactive member”. A member who, during the period of a formal leave of absence granted by his or her employer, but not exceeding an aggregate of ten school months, continues to make mandatory contributions to the board, retains his or her status as an active member.
(20) “Normal cost” means the amount of contribution which the state is required to make into the retirement fund in order to meet the actuarial cost of current service.
(21) “Public school” means any day school conducted within or without this state under the orders and superintendence of a duly elected school committee, a board of education, the State Board of Education, the Office of Early Childhood, the Board of Regents for Higher Education, or any of its constituent units, The University of Connecticut Board of Trustees, the board of governors or any of its constituent units, the Technical Education and Career System, the E. O. Smith School, the Children's Center and its successors, the State Education Resource Center established pursuant to section 10-4q of the 2014 supplement to the general statutes, revision of 1958, revised to January 1, 2013, the State Education Resource Center established pursuant to section 10-357a, joint activities of boards of education authorized by subsection (b) of section 10-158a and (A) any institution supported by the state at which teachers are employed or any incorporated secondary school not under the orders and superintendence of a duly elected school committee or board of education but located in a town not maintaining a high school and providing free tuition to pupils of the town in which it is located, and which has been approved by the State Board of Education under the provisions of part II of chapter 164, or (B) on and after July 1, 2023, any school operated by an interdistrict magnet school operator described in section 10-264s, provided such institution, secondary school or school is classified as a public school by the retirement board.
(22) “Retirement allowance” means payments for life derived from member contributions, including credited interest, and contributions from the state.
(23) “Retired member” means a member who receives a retirement benefit computed pursuant to section 10-183g.
(24) “School year” means the twelve months ending on June thirtieth of each year.
(25) “Surviving spouse” means a widow or widower of a deceased member who (A) was living with the member at the time of the member's death, or receiving, or entitled by court order or agreement to receive, regular support payments from the member, and (B) has not remarried.
(26) “Survivor” means a surviving spouse, a dependent former spouse, a dependent child and a dependent parent.
(27) “System” means the Connecticut teachers' retirement system.
(28) “Teacher” means any: (A) Person, including, but not limited to, a teacher, permanent substitute teacher, principal, assistant principal, supervisor, assistant superintendent or superintendent who is employed by a public school in a professional capacity while possessing a certificate or permit, except a school business administration endorsement, issued by the State Board of Education, provided on and after July 1, 1975, such certificate shall be for the position in which the person is then employed, except as provided for in section 10-183qq; (B) person possessing a certificate or permit issued by the State Board of Education, who was hired before July 1, 2022, and who provides health and welfare services for children in a nonprofit school, as provided in section 10-217a, under an oral or written agreement; (C) person who is engaged in teaching or supervising in a program in the state that leads to a high school diploma at a school for adults if the annual salary paid for such service is equal to or greater than the minimum salary paid for a regular, full-time teaching position in the day schools in the town where such service is rendered; (D) member of the professional staff employed at the State Board of Education, the governing body of the public school, kindergarten to grade twelve, inclusive, system, who is currently a member in the system and maintains certification; (E) member of the professional staff employed in an educational role at the Office of Early Childhood, the Board of Regents for Higher Education or any of the constituent units, or the Technical Education and Career System; (F) faculty member employed by The University of Connecticut in an educational role; and (G) staff member employed in an educational role at the State Education Resource Center established pursuant to section 10-4q of the 2014 supplement to the general statutes, revision of 1958, revised to January 1, 2013, or the State Education Resource Center established pursuant to section 10-357a, employed in a professional capacity while possessing a certificate or permit issued by the State Board of Education, provided such staff member was hired prior to July 1, 2022. A “permanent substitute teacher” is a person who serves as a substitute teacher in the same assignment for an entire school year.
(29) “Unfunded liability” means the actuarially determined value of the liability for service before the date of the actuarial valuation less the accumulated assets in the retirement fund.
(30) “Internal Revenue Code” means the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended, and any regulations promulgated under or interpretations of said code that may affect this chapter.
(31) “Limitation year” means the twelve-month period beginning each July first and ending each June thirtieth.
(32) “Educational role” or “educational capacity” means having duties and responsibilities that would require a certificate issued by the State Department of Education if performed in a public school.
(P.A. 78-208, S. 1, 35; P.A. 79-436, S. 1, 6; 79-541, S. 1, 6; 79-625, S. 1, 6; P.A. 80-300; 80-302; 80-371; 80-483, S. 41, 186; P.A. 82-218, S. 37, 46; 82-472, S. 31, 183; P.A. 83-449, S. 1, 5; 83-528, S. 1, 2; P.A. 84-241, S. 2, 5; 84-487, S. 1, 2; P.A. 85-594, S. 1, 4; P.A. 86-316, S. 1, 3; P.A. 88-4; P.A. 89-26, S. 3, 4; 89-276, S. 1, 3; P.A. 92-205, S. 1, 12; May Sp. Sess. P.A. 92-14, S. 1, 11; P.A. 00-187, S. 63, 75; P.A. 03-232, S. 7; P.A. 05-99, S. 1; P.A. 06-196, S. 194; P.A. 07-126, S. 1, 2; P.A. 08-76, S. 1, 2; 08-112, S. 4; P.A. 11-48, S. 277, 278; P.A. 14-39, S. 71–73; 14-212, S. 14, 15; P.A. 16-39, S. 5; June Sp. Sess. P.A. 17-2, S. 586; P.A. 19-73, S. 1; 19-117, S. 86; P.A. 21-186, S. 1; 21-196, S. 4; P.A. 22-118, S. 172, 292–294; P.A. 23-159, S. 20; 23-204, S. 318.)
History: P.A. 79-436 added definitions of “actuarial reserve basis”, “amortization of unfunded liabilities”, “current service”, “funding”, “normal cost” and “unfunded liability”, inserting terms in alphabetical order and renumbering subdivisions accordingly; P.A. 79-541 redefined “disabled”, deleting distinction between eligibility for survivor's benefits and for disability benefits; P.A. 79-625 redefined “member” to specifically exclude teachers who elect not to participate in retirement system; P.A. 80-300 redefined “teacher” to include assistant principals and assistant supervisors and professional staff members of state boards of education and of higher education or constituent units and to add qualifying phrase re certificates; P.A. 80-302 redefined “member” to include teachers who, while on formal leaves of absence, continue to make mandatory contributions; P.A. 80-371 redefined “formal application of retirement” to require that statements be notarized and be “supported by other evidence satisfactory to the board”; P.A. 80-483 made technical grammatical correction in definition of “member”; P.A. 82-218 replaced board of higher education with board of governors pursuant to reorganization of higher education system, effective March 1, 1983; P.A. 82-472 changed “Edwin O. Smith” to “E. O. Smith” in Subdivs. (14) and (19); P.A. 83-449 amended the definition of “disabled” in Subdiv. (13) by adding exception that during the first 24 months a member is receiving a disability allowance, “disabled” means the inability to perform the usual duties of his occupation by reason of any such impairment; P.A. 83-528 amended the definition of “annual salary” in Subdiv. (3) to exclude amounts determined by the board to be included for the purpose of inflating average annual salary and to exclude payments whose timing may be directed by a member and to specify that inclusion in annual salary of amounts paid to a member in lieu of payment by employer for the cost of benefits, etc. which were paid in prior years by employer, is prima facie evidence such amounts are included to inflate average annual salary; P.A. 84-241 added “of higher education” to board of governors' title in Subdiv. (25); P.A. 84-487 amended definition of teacher in Subdiv. (25) to make existing provision requiring possession of teacher's certificate for “position in which the person is then employed” effective “on and after July 1, 1975”; P.A. 85-594 redefined “amortization of unfunded liabilities” to be a systematic program of “annual payments determined as a level per cent of expected member annual salaries”; P.A. 86-316 added definition of “formal leave of absence” in Subdiv. (15), renumbered remaining Subdivs. and made technical changes in Subdivs. (8), (12), (18), (20), (22) and (25); P.A. 88-4 amended Subsec. (26) to expand types of certificates enumerated in Subdiv. (1) to include any “other certificate or permit issued by the state board of education”; P.A. 89-26 in Subdiv. (26) redefined “teacher” to provide that the person who is a teacher be employed in a professional capacity and made a technical change; P.A. 89-276 amended definition of “member” in Subdiv. (18) to delete provision that no teacher who has attained age 61 may become a member for the first time; P.A. 92-205 redefined “annual salary” to exclude payments to a superintendent pursuant to an individual contract between such superintendent and a board of education, of amounts not included in base salary, and redefined “mandatory contributions” to increase 5% contributions to 6%; May Sp. Sess. P.A. 92-14 changed effective date of P.A. 92-205, S. 1 from June 10, 1992, to July 1, 1992; P.A. 00-187 redefined “annual salary” in Subdiv. (3) to add provision relating to sabbatical leaves, redefined “credited interest” in Subdiv. (8) to require assessment on any mandatory contributions which were due but not remitted prior to the close of the school year for which salary was paid and to make a technical change, and redefined “formal application of retirement” in Subdiv. (16) to remove reference to “legal teacher's certificate”, effective July 1, 2000; P.A. 03-232 amended Subdiv. (6) defining “child” by inserting commas, amended Subdiv. (7) defining “contributions” to redefine “mandatory contributions” prior to July 1, 1989, as consisting of 5% “regular contributions” and 1% “contributions”, from July 1, 1989, to June 30, 1992, as consisting of 5% “regular contributions” and 1% “health contributions”, from July 1, 1992, to June 30, 2004, as consisting of 6% “regular contributions” and 1% “health contributions”, and on or after July 1, 2004, as consisting of 6% “regular contributions” and 1.25% “health contributions”, amended Subdiv. (11) defining “dependent parent” by substituting lower case Roman numerals for upper case alpha designators in the definition of “parent of a deceased member”, and amended Subdiv. (26) defining “teacher” by substituting upper case alpha designators for Arabic numerals, effective July 1, 2003; P.A. 05-99 amended definitions of “employer” and “public school” in Subdivs. (14) and (20), respectively, to include successors of the Children's Center, effective July 1, 2005; P.A. 06-196 made a technical change in Subdivs. (6) and (7), effective June 7, 2006; P.A. 07-126 amended Subdiv. (20) to redefine “public school” to include State Education Resource Center and amended Subdiv. (26) to redefine “teacher” by adding Subpara. (E) re State Education Resource Center, effective July 1, 2007; P.A. 08-76 redefined “annual salary” in Subdiv. (3), redefined “credited interest” in Subdiv. (8) and added Subdiv. (28) defining “Internal Revenue Code” and Subdiv. (29) defining “limitation year”, effective May 27, 2008; P.A. 08-112 redefined “teacher” in Subdiv. (26), effective May 27, 2008; P.A. 11-48 amended Subdiv. (14) and Subdiv. (26) to replace “board of governors” and “Board of Governors of Higher Education” with “Board of Regents for Higher Education” and make conforming changes, effective July 1, 2011; P.A. 14-39 redefined “employer” in Subdiv. (14), redefined “public school” in Subdiv. (20) and redefined “teacher” in Subdiv. (26) to include Office of Early Childhood, effective May 28, 2014; P.A. 14-212 redefined “public school” in Subdiv. (20) and redefined “teacher” in Subdiv. (26) to add “of the 2014 supplement to the general statutes, revision of 1958, revised to January 1, 2013,” re Sec. 10-4q and to include State Education Resource Center, effective June 13, 2014; P.A. 16-39 amended Subdiv. (16) by adding “or an advanced practice registered nurse's”; June Sp. Sess. P.A. 17-2 amended Subdiv. (7) to redefine “contributions”, effective October 31, 2017; P.A. 19-73 amended Subdiv. (7) to redefine “contributions”; P.A. 19-117 amended Subdiv. (2) to redefine “amortization of unfunded liabilities”, effective on the date the Treasurer certifies, pursuant to section 10-183vv, that the amount on deposit in the Connecticut Teachers' Retirement Fund Bonds Special Capital Reserve Fund equals or exceeds the required minimum capital reserve, as defined in said section; P.A. 21-186 redefined “disabled” in Subdiv. (13) and “formal application of retirement” in Subdiv. (16), effective July 1, 2021; P.A. 21-196 amended Subdiv. (16) by adding reference to physician assistant; P.A. 22-118 amended Subdiv. (4) to redefine “average annual salary”, added new Subdiv. (8) to define “coparticipant”, redesignated existing Subdivs. (8) to (21) as Subdivs. (9) to (22), amended redesignated Subdiv. (9) to replace “be assessed” with “accrue”, amended redesignated Subdiv. (13) to redefine “designated beneficiary”, amended redesignated Subdiv. (15) to redefine “employer”, amended redesignated Subdiv. (18) to redefine “funding”, amended redesignated Subdiv. (19) to redefine “member”, amended redesignated Subdiv. (21) to redefine “public school”, added new Subdiv. (23) to define “retired member”, redesignated existing Subdivs. (22) to (29) as new Subdivs. (24) to (31), amended redesignated Subdiv. (28) to redefine “teacher”, added Subdiv. (32) to define “educational role” or “educational capacity”, and made technical changes, effective July 1, 2022; P.A. 23-159 amended Subdiv. (21) to redefine “public school”, effective July 1, 2023; P.A. 23-204 amended Subdiv. (28) to redefine “teacher” and make technical changes, effective July 1, 2023.
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Sec. 10-183e. Credited service. (a)(1) A member shall receive a month of credited service for each month of service, from September to June, inclusive, as a teacher, provided the member makes the mandatory contribution for each month. Ten months of credited service shall be deemed to be one year of credited service. A member may not accumulate more than one year of credited service during any school year.
(2) The board may grant a member a month of credited service for a month during which such member was employed after the first school day but not later than the fifth school day of such month if (A) such month was the member's first month of service as a teacher, (B) such month of credited service is needed by the member in order to qualify for a normal retirement benefit, and (C) the mandatory contribution for such month is paid.
(b) Any member may purchase, as provided in subsection (c) of this section, additional credited service, but not to exceed an aggregate of one year in the case of service described in subdivision (2) of this subsection for each two years of active full-time service as a Connecticut teacher; and not to exceed an aggregate of one year in the case of absence described in subdivision (8) of this subsection for each five years of active full-time service as a Connecticut teacher, provided if any such absence exceeds thirty consecutive school months, such additional credited service shall be limited to thirty school months; and not to exceed an aggregate of ten years for all service described in this subsection, except for the sum total of any service described in subdivisions (2) and (17) of this subsection. In no event may any service described in this subsection be purchased if the member is receiving or is, or will become, entitled to receive a retirement benefit based upon such service from any governmental system other than the teachers' retirement system or the federal Social Security System. Additional credited service includes:
(1) Service as a teacher in a school for military dependents established by the United States Department of Defense;
(2) Service as a teacher in a public school of another state of the United States, its territories or possessions;
(3) Service in the armed forces of the United States in time of war, as defined in section 27-103, or service in said armed forces during the period beginning October 27, 1953, and ending January 31, 1955;
(4) Service in a permanent full-time position for the state;
(5) Service as a teacher at The University of Connecticut prior to July 1, 1965;
(6) Service as a teacher at the Wheeler School and Library, North Stonington, prior to September 1, 1949;
(7) Service as a teacher at the Gilbert Home, Winsted, prior to September 1, 1948;
(8) Any formal leave of absence as provided in regulations adopted by the board, if the member subsequently returns to service for at least one school year;
(9) Service as a teacher at the American School for the Deaf, the Connecticut Institute for the Blind or the Newington Children's Hospital;
(10) Forty or more days of service as a substitute teacher, or the equivalent service rendered at less than half-time, in a single public school system within the state of Connecticut in any school year, provided (A) eighteen days of such service shall equal one month of credited service under subsection (a) of this section, and (B) on and after July 1, 2022, such days of service shall be rendered within one school year;
(11) Service in the armed forces of the United States, other than service described in subdivision (3) of this subsection, not to exceed thirty months;
(12) Service as a full-time, salaried, elected official of the state or any political subdivision of the state during the 1978 calendar year or thereafter, if such member subsequently returns to service as a teacher in a public school for at least one school year;
(13) Service in the public schools of Connecticut as a member of the federal Teacher Corps, not to exceed two years;
(14) Service in the United States Peace Corps;
(15) Service in the United States VISTA (Volunteers in Service to America) program;
(16) Service in the public schools of Connecticut as a social work assistant, from January 1, 1969, to December 31, 1986, inclusive, if such member became a certified school social worker and remained in service in the public schools of Connecticut as a social worker after certification; and
(17) Service prior to July 1, 2007, as a member of the staff of the State Education Resource Center, employed in a professional capacity while possessing a certificate or permit issued by the State Board of Education.
(c) Credited service described in subdivisions (3), (8), (10) and (17) of subsection (b) of this section shall be deemed to be service in the public schools of Connecticut.
(d) Additional credited service shall be purchased by a member (1) prior to the effective date of such member's retirement, or (2) at the time a surviving spouse elects benefits under the provisions of subsection (d) of section 10-183h. Any purchase of such service shall be accomplished by the member paying to the board an amount determined on the basis of actuarial factors adopted by the board that reflect the present value of one-half of the full actuarial cost of the benefit increase that will be derived by the purchase of such service, except that in the case of purchase of service described in subdivision (17) of subsection (b) of this section, or in the case of purchase of service described in subdivision (2) of said subsection (b) in excess of ten years, the present value of the full actuarial cost. Such factors shall consider the member's age at the time of purchase, actual or projected salary, and the earliest date on which the member would be eligible for a normal retirement allowance. Payments for additional credited service may be made in a lump sum by transfer of funds from the member's accumulated one per cent contributions withheld prior to July 1, 1989, with credited interest and accumulated voluntary contributions with credited interest plus such other amounts as may be required to complete the purchase.
(e) For purposes of computing benefit amounts under section 10-183g, whole months of credited service, including additional credited service, in excess of whole years shall be used in determining aggregate accumulations of credited service.
(f) Any member who has been elected to a full-time or part-time position in an organization which has been duly designated as the teachers' representative or who has been elected to a full-time or part-time position in a state-wide, national or international bargaining organization may, during the time such member so serves, continue membership and may make, or have made for such member, payments of contributions for such time, provided the organization which such member represents shall pay the full actuarial cost that would otherwise be incurred by the state for the time such member serves in excess of one year. If payment is made during such periods or at any time before retirement, such member shall receive credit for such service and shall be considered as serving as a teacher in the public schools of Connecticut for the purpose of computing length of service, and for the purpose of computing average annual salary, and shall be considered by the retirement board as though such member were remaining in such member's latest teaching position.
(P.A. 78-208, S. 4, 35; P.A. 79-407; 79-625, S. 2, 6; P.A. 80-376, S. 1; 80-408, S. 1; P.A. 82-293, S. 1, 2; 82-466, S. 1; P.A. 84-295, S. 1, 2; 84-440; P.A. 86-316, S. 2, 3; P.A. 87-410, S. 1, 3; P.A. 89-275; 89-342, S. 1, 5; P.A. 90-308, S. 5, 15; P.A. 92-205, S. 10–12; May Sp. Sess. P.A. 92-14, S. 1, 11; P.A. 93-379, S. 5, 8; P.A. 97-301, S. 1, 8, 10; P.A. 98-251, S. 1, 7; P.A. 02-117, S. 1; P.A. 03-232, S. 2, 14; P.A. 06-190, S. 2, 6; P.A. 07-126, S. 3; P.A. 08-112, S. 2; P.A. 14-212, S. 16; P.A. 22-118, S. 174; P.A. 23-159, S. 19.)
History: P.A. 79-407 added Subsec. (i) re continuance of membership by members elected to full-time position in organization which is teachers' bargaining representative; P.A. 79-625 amended Subsec. (g) to include provisions re deferred vested retirement benefits; P.A. 80-376 allowed prior members to purchase additional credited service only after 1 year from date of latest resumption of membership, whereas previously prior members could purchase credited service only until 1 year from date of latest membership resumption in Subsec. (b); P.A. 80-408 amended Subsec. (b)(3) to include military service between October 27, 1953, and January 31, 1955, and deleted word “wartime” throughout section; P.A. 82-293 amended Subsec. (b) to allow credited service for teaching at American School for the Deaf, Connecticut School for the Blind and Newington Children's Hospital and amended Subsec. (c) to allow 5 years for purchase of service credit for teaching at American School for the Deaf, Connecticut School for the Blind and Newington Children's Hospital; P.A. 82-466 added Subsec. (b)(9) re purchase of retirement credit for service as a substitute teacher; P.A. 84-295 amended Subsec. (i) to include member “who has been elected to a full-time position in the state-wide bargaining organization with which the local bargaining organization is affiliated” and replaced reference to “subsection (b) of section 10-153” with reference to “section 10-153b”; P.A. 84-440 restructured provisions re purchase of additional credited service, limited total number of years which may be purchased to 10, repealed reciprocity requirement in Subsec. (b)(2) re out-of-state teaching service and added requirement re 2 years active full-time teaching service in Connecticut for each year of out-of-state service purchased, repealed provision authorizing prior member to purchase service after teaching in Connecticut public schools for 1 year after resumption of membership, amended Subsec. (b)(10) re substitute teaching service to require such service to be in Connecticut, added Subsec. (b)(11) re armed forces service, amended provisions in Subsec. (c) re cost of and time limits for purchase of additional credited service, repealed Subsecs. (d) and (e) re special purchase provisions and renumbered remaining Subsecs.; P.A. 86-316 amended Subsec. (b) to delete limitation of subsection to any member “except an inactive member”, to provide that purchase of additional credited service for an absence described in Subdiv. (8) may not exceed an aggregate of 1 year for each 5 years of active full-time service as a Connecticut teacher and to provide that if any such absence exceeds 30 consecutive school months, such additional credited service shall be limited to 30 school months; amended Subsec. (b)(8) to refer to “formal” rather than “authorized” leave of absence; P.A. 87-410 amended Subsec. (a) to authorize board, under certain conditions, to grant a month of credited service for a month during which a member was employed after the first school day but not later than the fifth school day; P.A. 89-275 amended Subsec. (g) to increase number of years of credited service which may be purchased for service in bargaining organization from 4 to 8; P.A. 89-342 amended Subsec. (c) to limit use of accumulated 1% contributions for purchase of additional credited service to contributions withheld prior to July 1, 1989, and to clarify that such contributions and voluntary contributions include credited interest; P.A. 90-308 added Subsec. (b)(12) re service as an elected official; P.A. 92-205 added Subsec. (b)(13) re service as a member of the federal teacher corps and Subsec. (g) to expand provision re election to full-time position in state-wide bargaining organization to include national or international bargaining organization; May Sp. Sess. P.A. 92-14 changed effective date of P.A. 92-205 but did not affect the date applicable to this section; P.A. 93-379 added Subsec. (b)(14) permitting purchase of retirement credit for Peace Corps service, effective June 30, 1993; P.A. 97-301 amended Subsec. (b)(12) to require that credited service as an elected official must be service as a full-time, salaried, elected official and amended Subsec. (g) to include election to part-time position and to delete 8-year limit on continued membership, effective July 8, 1997; P.A. 98-251 amended Subdiv. (10) of Subsec. (b)(10) re additional credited service for 40 or more days of service as a substitute teacher, to include the equivalent service rendered at less than half-time, effective June 8, 1998; P.A. 02-117 amended Subsec. (b)(10) to reduce number of days of substitute teaching from 20 to 18, effective July 1, 2002; P.A. 03-232 amended Subsec. (c) to require that a member purchase additional credited service prior to retirement, deleted reference to optional payment form pursuant to Sec. 10-183j and deleted existing formula for payment for purchase of service, added reference to benefits under Secs. 10-183g and 10-183jj, and added new formula for purchase of service based on actuarial factors adopted by board which reflect present value of one-half of full actuarial cost of benefit increase to be derived by purchase of such service, and specified that factors consider member's age, actual or projected salary, and earliest date when member would be eligible for normal retirement allowance, effective October 1, 2004, and amended Subsec. (g) to delete “with which the local bargaining organization is affiliated, under the provisions of section 10-153b”, and to make certain technical changes, effective July 1, 2003; P.A. 06-190 amended Subsec. (b) by adding provisions re service in VISTA and certain service as social work assistant as Subdivs. (15) and (16), respectively, effective July 1, 2006; P.A. 07-126 added Subsec. (b)(17) re State Education Resource Center and amended Subsec. (c) by adding exception re Subsec. (b)(17), effective July 1, 2007; P.A. 08-112 amended Subsec. (b) to include service described in Subdiv. (2) as exception to limitation on additional credited service to aggregate of 10 years and to make a technical change and amended Subsec. (c) to include reference to purchase of service described in Subsec. (b)(2) in excess of 10 years and to make a technical change, effective July 1, 2008; P.A. 14-212 amended Subsec. (b)(17) by adding “of the general statutes, revision of 1958, revised to January 1, 2007,” re Sec. 10-4q, effective June 13, 2014; P.A. 22-118 amended Subsec. (a) to designate existing provisions re receipt of month of credited service as new Subdiv. (1) and to amend same to add “, from September to June, inclusive,”, to delete “Teachers' Retirement Board may grant a member”, to add “member makes the mandatory contribution for each month”, and to add provisions re 10 months of credited service and accumulation of more than 1 year of credited service during 1 school year, to designate existing provisions re board granting month of credited service as new Subdiv. (2), to redesignate existing Subdivs. (1) and (2) as Subparas. (A) and (B) and to add Subpara. (C) to require mandatory contribution for the month is paid, amended Subsec. (b) to add reference to public school in Subdiv. (2), to delete “at Hartford” in Subdiv. (9), to designate existing provisions re 18 days of service as Subpara. (A) and to add Subpara. (B) re days of service on and after July 1, 2022, in Subdiv. (10), to add reference to teacher in a public school in Subdiv. (12), and to add reference to schools of Connecticut in Subdiv. (16), added new Subsec. (c) re certain credited service to be deemed service in the public schools of Connecticut, redesignated existing Subsec. (c) as new Subsec. (d) and amended same to delete Subdiv. (3), deleted existing Subsecs. (d) and (e), redesignated existing Subsecs. (f) and (g) as new Subsecs. (e) and (f), and made technical and conforming changes, effective July 1, 2022; P.A. 23-159 amended Subsec. (b) by adding “the sum total of any” and replacing “subdivision (2)” with “subdivisions (2) and (17)”, amended Subsec. (b)(17) by deleting “established pursuant to section 10-4q of the general statutes, revision of 1958, revised to January 1, 2007”, and amended Subsec. (c) by adding “and (17)” and making a conforming change, effective July 1, 2023.
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Sec. 10-183l. Teachers' Retirement Board. Valuation of fund. (a)(1) On and after July 1, 1991, the management of the system shall continue to be vested in the Teachers' Retirement Board, whose members shall include the Treasurer, the Secretary of the Office of Policy and Management and the Commissioner of Education, or their designees, who shall be voting members of the board, ex officio. (2) On or before June 15, 1985, and quadrennially thereafter, the members of the system shall elect from their number, in a manner prescribed by said board, two persons to serve as members of said board for terms of four years beginning July first following such election. Both of such persons shall be active teachers who shall be nominated by the members of the system who are not retired and elected by all the members of the system. On or before July 1, 1991, and quadrennially thereafter, the members of the system shall elect from their number, in a manner prescribed by said board, three persons to serve as members of said board for terms of four years beginning July first following such election. Two of such persons shall be retired teachers who shall be nominated by the retired members of the system and elected by all the members of the system and one shall be an active teacher who shall be nominated by the members of the system who are not retired and elected by all the members of the system. (3) On or before July 1, 2011, and quadrennially thereafter, the members of the system shall elect from their number, in a manner prescribed by said board, one person to serve as a member of said board for a term of four years beginning July first following such election. Such person shall be an active teacher who shall be nominated by the members of the system who are not retired, elected by all the members of the system and a member of an exclusive representative of a teachers' bargaining unit that is not represented by the members of the board elected under subdivision (2) of this subsection. (4) On or before October 1, 2023, and quadrennially thereafter, the retired members of the system shall elect from their number, in a manner prescribed by said board, two persons to serve as members of said board for a term of four years beginning October first following such election. Both of such persons shall be (A) retired teachers who are receiving a pension benefit from the system, and (B) nominated and elected by the members of the system who are retired. (5) If a vacancy occurs in the positions filled by the members of the system who are not retired, said board shall elect a member of the system who is not retired to fill the unexpired portion of the term. If a vacancy occurs in the positions filled by the retired members of the system, said board shall elect a retired member of the system to fill the unexpired portion of the term. The Governor shall appoint five public members to said board in accordance with the provisions of section 4-9a, one of whom shall be the mayor, first selectman or chief elected official of a municipality. On and after October 31, 2017, the Governor shall fill the next vacant position on the board that is appointed by the Governor with a person who is the mayor, first selectman or chief elected official of a municipality. The members of the board shall serve without compensation, but shall be reimbursed for any expenditures or loss of salary or wages which they incur through service on the board. A majority of the membership of the board shall constitute a quorum for the transaction of any business.
(b) In carrying out its duties, the board may employ a chief administrator with a title established by the board, who shall also serve as secretary of the board, an administrative officer and such staff as may be necessary. Their salaries shall be paid by said board with the approval of the Secretary of the Office of Policy and Management. Said board shall employ the services of one or more actuaries, each of which shall be an individual or firm having on its staff a fellow of the Society of Actuaries, to carry out the actuarial duties of this section and sections 10-183b, 10-183r, and 10-183z and for such related purposes as the board deems advisable. The cost of such services shall be charged to the funds provided for in section 10-183r. Said board shall arrange for such actuary to prepare an actuarial valuation of the assets and liabilities of the system as of June thirtieth, annually. On the basis of reasonable actuarial assumptions approved by the board, such actuary shall determine the actuarially determined employer contribution required to meet the actuarial cost of current service and the unfunded accrued liability. Such valuation shall be completed prior to December first, annually. Said board shall adopt all needed actuarial tables and may adopt regulations and rules not inconsistent with this chapter, including regulations and rules for payment of purchased service credits and repayment of previously withdrawn accumulated contributions. Said board shall establish an operational budget necessary for the management of the system. The board may enter into such contractual agreements, in accordance with established procedures, as may be necessary for the discharge of its duties.
(P.A. 78-208, S. 11, 35; 78-303, S. 85, 136; P.A. 79-436, S. 4, 6; P.A. 80-478, S. 2, 3; P.A. 83-533, S. 43, 54; P.A. 84-207, S. 1, 2; 84-255, S. 9, 21; P.A. 87-296, S. 1, 2; P.A. 91-188, S. 1, 2; P.A. 93-146, S. 2, 3; 93-262, S. 1, 87; P.A. 97-301, S. 3, 10; June Sp. Sess. P.A. 01-1, S. 41, 54; P.A. 02-89, S. 14; P.A. 03-278, S. 24; P.A. 11-48, S. 40; June Sp. Sess. P.A. 17-2, S. 68; P.A. 21-186, S. 4; P.A. 22-118, S. 91; P.A. 23-63, S. 1.)
History: P.A. 78-303 allowed substitution of banking commissioner for bank commissioner and commissioner of education for secretary of the state board of education in Subsec. (a) to fulfill intent of P.A. 77-614 which changed names above and made insurance and banking departments divisions within the department of business regulation, effective January 1, 1979; P.A. 79-436 amended Subsec. (b) to include provisions for employment and duties of actuaries; P.A. 80-478 amended Subsec. (a) to increase number of members from five to nine, including four public members; P.A. 83-533 restructured board, substituting commissioner on aging for banking commissioner and increasing number of teacher representatives from 1 to 3 and reducing public members from 4 to 3; P.A. 84-207 amended Subsec. (a) to authorize appointment of designees by commissioner members, required board to fill vacancy in position filled by member of the system who is “not retired” or “retired” by electing a member who is “not retired” or “retired”, respectively, inserted new Subsec. (b) re membership and terms of board on and after July 1, 1985, relettering former Subsec. (b) as Subsec. (c) and added new Subsec. (d) validating membership and actions of board, notwithstanding failure of board to elect members in accordance with Subsec. (a); P.A. 84-255 amended Subsec. (a) by adding provision that commissioner of education may appoint a designee to serve on the board; P.A. 87-296 deleted provision in Subsecs. (a) and (b) that claims for reimbursement of board members shall be subject to approval of secretary of office of policy and management; P.A. 91-188 increased membership of board from 11 to 12, effective July 1, 1991, required that additional member be a retired teacher, and increased number of members required for approval of a decision of the board from 5 to 6; P.A. 93-146 amended Subsec. (b) to remove the insurance commissioner from the teacher's retirement board and to increase the number of public members from 4 to 5, effective June 14, 1993; P.A. 93-262 authorized substitution of commissioner and department of social services for commissioner and department on aging, effective July 1, 1993; P.A. 97-301 amended Subsec. (c) to authorize board to enter into contractual agreements necessary for discharge of its duties, effective September 1, 1997; June Sp. Sess. P.A. 01-1 amended Subsec. (c) to require, commencing December 1, 2002, the valuation to be completed prior to December first biennially, effective July 1, 2001; P.A. 02-89 deleted as obsolete former Subsec. (a) re the membership of the board, redesignated existing Subsecs. (b) and (c) as Subsecs. (a) and (b) and deleted as obsolete former Subsec. (d) re the continuation in office of certain members and the validation of certain actions of the board; P.A. 03-278 made technical changes in Subsec. (a), effective July 9, 2003; P.A. 11-48 amended Subsec. (a) by designating existing provision re management of system as Subdiv. (1) and amending same by replacing reference to number of members including Commissioner of Social Services with provision re members including Treasurer and Secretary of the Office of Policy and Management and adding “voting” re members, by designating existing provision re election of active and retired teachers as Subdiv. (2), by adding Subdiv. (3) re election of active teacher and by designating existing provision re vacancy as Subdiv. (4), effective June 13, 2011; June Sp. Sess. P.A. 17-2 amended Subsec. (a) by adding provisions re one public member appointed by Governor to be mayor, first selectman or chief elected official of a municipality, and Governor to fill next vacant position with mayor, first selectman or chief elected official, effective October 31, 2017 and applicable to appointments made on or after said date; P.A. 21-186 amended Subsec. (a) by replacing “the effective date of this section” with “October 31, 2017”, and replacing requirement that board decisions be approved by 6 members or a majority of the members present, whichever is greater, with provision re quorum, amended Subsec. (b) by changing “a secretary” to provision re chief administrator and administrative officer, and replacing “clerical and other assistance” with “staff”, “normal cost” with “actuarially determined employer contribution” and “such funds as are” with “an operational budget”, effective July 1, 2021; P.A. 22-118 amended Subsec. (b) to change provision requiring actuarial valuation every 2 years to require annual actuarial valuation, and made technical and conforming changes, effective July 1, 2022; P.A. 23-63 amended Subsec. (a) by adding new Subdiv. (4) re election of two persons to serve as members on or before October 1, 2023, and quadrennially thereafter and redesignating existing Subdiv. (4) as Subdiv. (5), effective June 26, 2023.
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Sec. 10-183vv. Connecticut Teachers' Retirement Fund Bonds Special Capital Reserve Fund. Fund pledged to payment on bonds. Certification of fund balance. Termination. (a)(1) There is established the Connecticut Teachers' Retirement Fund Bonds Special Capital Reserve Fund. The purpose of the fund shall be to provide, and it is determined that such fund does provide, adequate provision for the protection of the holders of bonds of the state issued pursuant to section 10-183qq and any bonds refunding such bonds. The fund shall secure the payment of the principal of and interest on such bonds and shall be held in trust for the benefit of the holders of the bonds secured thereby, separate and apart from other funds of the state.
(2) The fund established pursuant to subdivision (1) of this subsection shall contain (A) any moneys required by law to be deposited in the fund, including, but not limited to, deposits from the Connecticut Lottery Corporation in accordance with section 12-812, and (B) any financial guaranty or guaranties obtained by the Treasurer for purposes of the fund, which may include any letter of credit, surety bond, insurance policy, guaranty or similar instrument, issued by a bond or insurance company or other financial institution that has a long-term rating within the top two rating categories of at least one nationally recognized statistical rating organization at the time of issuance of such financial guaranty, as determined by the Treasurer to be in the best interest of the state. Such financial guaranty shall be in a form prescribed by the Treasurer, valued at par and payable or available to be drawn upon on or before any date by which debt service on the bonds secured thereby is required to be paid. In connection with such financial guaranty, the Treasurer may enter into any other necessary or appropriate agreements on behalf of the state, including intercreditor provisions if there is more than one financial guaranty. The Treasurer may pledge the full faith and credit of the state, and pledge the moneys required to be deposited in the fund to the state's payment obligations under any agreement entered into pursuant to this subdivision. As part of the contract of the state with the other parties to any agreement entered into pursuant to this subdivision for which the full faith and credit of the state is pledged to the state's payment obligations under such agreement, appropriation of all amounts necessary for the punctual payment of the obligations of the state under any such agreement is hereby made and the Treasurer shall pay such amounts as the same become due. Notwithstanding the provisions of subsection (b) of this section, the costs of any agreement entered into pursuant to this subdivision may be paid from amounts in the fund.
(3) The Superior Court shall have jurisdiction to enter judgment against the state founded upon any agreement entered into pursuant to subdivision (2) of this subsection. Any action brought under this subdivision shall be brought in the superior court for the judicial district of Hartford. The jurisdiction conferred on the Superior Court by this subdivision includes any set-off, claim or demand on the part of the state against any plaintiff commencing an action under this subdivision. Such action shall be tried to the court without a jury. All legal defenses, except governmental immunity, shall be reserved to the state. Any action brought under this subdivision shall be privileged in respect to assignment for trial upon motion of either party.
(4) After obtaining a financial guaranty or guaranties pursuant to subdivision (2) of this subsection, if the moneys deposited in the fund, together with the amount available under such financial guaranty or guaranties, exceeds the required minimum capital reserve, the amount of such excess may be released as provided in subsection (d) of this section. It is determined that the Connecticut Teachers' Retirement Fund Bonds Special Capital Reserve Fund, if so funded in whole or in part by such a financial guaranty or guaranties, continues to provide, and does provide, adequate provision for the protection of the holders of bonds of the state issued pursuant to section 10-183qq and any bonds refunding such bonds.
(5) During any period when any bonds secured by the fund remain outstanding, amounts on deposit in the fund or available under a financial guaranty shall not be commingled with other state funds and the state shall have no claim to or against, or interest in, the fund, except as hereinafter provided. Amounts in such fund shall be deposited in a separate account or accounts in a trust company or bank having the powers of a trust company within the state, which shall serve as the trustee of the fund. The Treasurer shall enter into an agreement with such trust company or bank in accordance with the provisions of this section, sections 10-183b, 10-183z, 10-183ww, 12-801, 12-806 and 12-812 and section 90 of public act 19-117*.
(b) The moneys held in the Connecticut Teachers' Retirement Fund Bonds Special Capital Reserve Fund or available under a financial guaranty, except as provided in this section, shall be pledged to payment on bonds secured by the fund and shall be used solely for the payment of the principal of bonds secured by the fund as such bonds become due by reason of maturity or sinking fund redemption, the purchase of such bonds, the payment of interest on such bonds and the payment of any redemption premium required to be paid when such bonds are redeemed prior to maturity. In the event the state has not otherwise timely made available moneys to pay principal or interest due on such bonds, the Treasurer shall direct the trustee of the fund to transfer from the fund to the paying agent for such bonds, or draw under such financial guaranty, to the extent available therefor, the amount necessary to timely pay such principal or interest then due. Except for the payment of the principal of bonds secured by the fund as such bonds become due and the payment of interest on such bonds, no moneys shall be withdrawn from the fund in such amount as would reduce the total amount on deposit in the fund plus the amount available under a financial guaranty or guaranties to less than the required minimum capital reserve. The pledge made by the state pursuant to this section shall be valid and binding from the time when the pledge is made. The lien of such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the state, irrespective of whether the parties have notice of the claims. Notwithstanding any provision of the Uniform Commercial Code, no instrument by which such pledge is created need be recorded or filed. Any moneys so pledged and later received by the state shall be subject immediately to the lien of the pledge without any physical delivery thereof or further act and such lien shall have priority over all other liens. For the purpose of evaluation of such fund, obligations acquired as an investment shall be valued at market. For purposes of this section, “required minimum capital reserve” means the maximum amount of principal and interest becoming due on bonds of the state issued pursuant to section 10-183qq, and any bonds refunding such bonds then outstanding, by reason of maturity or a required sinking fund installment in any succeeding fiscal year.
(c) The amounts payable from the Connecticut Lottery Corporation into such fund as provided in section 12-812 shall be sufficient for the payment of the principal of and interest on the bonds secured by the Connecticut Teachers' Retirement Fund Bonds Special Capital Reserve Fund when due, whether at maturity or by mandatory sinking fund installments.
(d) The Treasurer shall certify to the Governor, the Teachers' Retirement Board and the president of the Connecticut Lottery Corporation whenever the total amount on deposit in the Connecticut Teachers' Retirement Fund Bonds Special Capital Reserve Fund plus the amount available under a financial guaranty or guaranties exceeds the required minimum capital reserve and then shall direct the trustee for the fund to remit to the Treasurer for deposit into the Connecticut Baby Bond Trust, established under section 3-36b, any such excess amount.
(e) The Connecticut Teachers' Retirement Fund Bonds Special Capital Reserve Fund shall terminate and, after payment of any payment obligations under any agreement entered into pursuant to subsection (a) of this section, upon direction of the Treasurer, any moneys remaining therein shall be transferred to the Connecticut Baby Bond Trust: (1) Upon payment in full of the principal and interest on all bonds secured by the fund; (2) if there has been deposited in an irrevocable trust for the benefit of the holders of the bonds secured by the fund either (A) moneys in an amount that shall be sufficient to pay, when due, the principal of and interest on such bonds, and any redemption premium required to be paid when such bonds are redeemed prior to maturity, or (B) noncallable and nonprepayable direct obligations of, or obligations the timely payment of principal of and interest on which are unconditionally guaranteed by, the United States of America, the principal of and the interest on which when due, without reinvestment, will provide moneys that together with the moneys, if any, deposited with the trustee at the same time, shall be sufficient to pay when due the principal of and interest on such bonds, and any redemption premium required to be paid when such bonds are redeemed prior to maturity; or (3) if the amount of the annual required contribution to the fund for the Connecticut teachers' retirement system is determined in accordance with the provisions of subsection (b) of section 10-183l and section 10-183z, as such sections were in effect on April 30, 2008. The Treasurer shall direct the trustee of the Connecticut Teachers' Retirement Fund Bonds Special Capital Reserve Fund to enter into such contract with the trustee of the Connecticut Baby Bond Trust as the Treasurer deems necessary or appropriate to provide for such transfer so as to protect the interest of beneficiaries of the Connecticut Baby Bond Trust, subject to the use of amounts in the Connecticut Teachers' Retirement Fund Bonds Special Capital Reserve Fund for purposes of paying principal and interest on bonds secured by the fund.
(f) Pending the use or application of amounts in the fund, moneys in the fund may be invested and reinvested at the direction of the Treasurer in such obligations, securities and investments as are set forth in subsection (f) of section 3-20 and in participation certificates in the Short Term Investment Fund created under section 3-27a.
(g) The state pledges to the holders of the bonds of the state issued pursuant to section 10-183qq, and any bonds refunding such bonds, that the state shall not limit or alter the rights of such holders under this section or reduce the transfer or deposit of moneys into the fund pursuant to section 10-183ww or section 12-812 until all such bonds are fully paid or until provision for the payment of such bonds has been made as provided in subdivision (2) of subsection (e) of this section, provided nothing contained in this section shall preclude such limitation, alteration or reduction if adequate provision is made by law for the protection of the holders of such bonds.
(P.A. 19-117, S. 82; P.A. 23-204, S. 148.)
*Note: Section 90 of public act 19-117 is special in nature and therefore has not been codified but remains in full force and effect according to its terms.
History: P.A. 19-117 effective June 26, 2019; P.A. 23-204 amended Subsec. (a) by dividing provisions into subdivisions, deleting provision re contents of fund in Subdiv. (1), adding Subdivs. (2) to (4) and adding provision re financial guaranty in Subdiv. (5), amended Subsec. (b) by adding provisions re financial guaranty, amended Subsec. (d) by adding provision re financial guaranty and remitting excess to Connecticut Baby Bond Trust instead of General Fund, and amended Subsec. (e) by adding provision re payment obligation under agreement entered into under Subsec. (a), replacing reference to Budget Reserve Fund with Connecticut Baby Bond Trust, deleting Subdiv. (4) and adding provision re contract with trustee of Connecticut Baby Bond Trust, effective June 12, 2023.
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