Connecticut State Employees

Retirement Commission

 

 

At a Glance

 

PETER R. BLUM, Chairman

NANCY WYMAN, Secretary Ex Officio

Established – 1939

Statutory authority – CGS Chapters 65, 66, 104, 113, 774, 872, 886, pension agreement

Central office - 55 Elm Street

Hartford, CT 06106

Average number of full-time employees - 87

Average number of part-time employees - One

Organizational structure - The Connecticut State Employees Retirement Commission as of June 30, 2003 consisted of fifteen Commissioners: Peter R. Blum, Chairman; Robert Baus, Actuarial Trustee; Carmen E. Boudier, Employee Trustee; Stephen Caliendo, Management Trustee; Charles Casella, Employee Trustee; Robert D. Coffey, Management Trustee; Thomas P. Culley, Employee Trustee; Stephen Greatorex, Management Trustee, Salvatore Luciano, Employee Trustee; Steven Perruccio, Employee Trustee; Claude Poulin, Actuarial Trustee; Linda J. Yelmini, Management Trustee; three vacant, Management Trustees.

     The operating agency for the Commission is the Retirement & Benefit Services Division of the Comptroller’s Office – Steven Weinberger, Director.

 

Statutory Responsibility

     The Connecticut State Employees Retirement Commission administers the State Employees Retirement System; the Alternate Retirement Program for eligible employees of the Board of Higher Education; the Connecticut Municipal Employees Retirement Systems A and B; the State’s Attorneys Retirement System; Public Defenders Retirement System; Special Statutory Retirement Benefits; the Judges and Compensation Commissioners Retirement System; and the Connecticut Probate Judges and Employees Retirement System.

 

Improvements/Achievements 2002-03

     During the year the Commission met and ruled on 5,617 retirement applications and additional matters relating to the administration of the retirement systems.  In addition, the Medical Examining Board considered 339 disability retirement applications; of this number 275 were approved.

 

Information Reported as Required by State Statute

 

State Employees Retirement System

     The statement of operations of this system for the fiscal year ended June 30, 2003 is as follows:

                                                                                                               

Year ended June 30, 2003

Assets at Cost – July 1, 2002                                                                                         $4,824,538,173.13

 

Receipts:

                Employee Contributions                                                                                           $50,953,367.26

                Federal and Other Reimbursements                                                                        $139,668,920.20

                Transfers to Higher Education                                                                                   $(44,125,679.00)

 

                State Retirement Contribution Payments –

                General Fund                                                                                                       $285,694,490.00

 

                State Retirement Contribution Payments –

                Transportation Fund                                                                                          $40,214,000.00

 

                Interest and Investment Income                                                                       $319,466,082.99

 

                Gain on Sale of Investments                                                                          $10,185,030.78

 

Disbursements:

                Refunds on Termination, or Death                                                                          $4,311,346.19

               

Retirement Allowances Paid                                                                        $696,803,446.48

 

                Interest Awarded                                                                                                                         $1,763,952.97

 

                Professional Services                                                                                        $92,251.00

 

                Banking Service Charges                                                                                   $34,974.31

 

                Retirement Commission Services                                                                             $183,396.51

 

                Loss on Sale of Investments                                                                          $1,152,865.16

 

                                                                                                                                     ___________________

 

Net Assets At Cost – June 30, 2003                                                                $ 4,922,252,152.74

 

      The State is continuing to fund these retirement benefits under the funding plan established by the 1971 General Assembly, as modified by Public Act 83-533 and the 1988-1994 Pension Arbitration Award, and subsequent collective bargaining agreements with the State Employees Bargaining Agent Coalition.

     Approximately 60,231active and 1,746 inactive (vested) employees were members as of June 30, 2003.

     Subsequent to certification by the Commission on November 20, 2000, based upon the actuary’s recommendation, the General Assembly made the following appropriation:

                               

General Fund Appropriation                                                      $285,694,490.00

 

                                Special Transportation Fund Appropriation                                           $40,214,000.00

 

                                Recoveries from Other Funds                                                     $95,543,241.00

 

                Appropriation Request for Fiscal Years

                Starting July 1, 2002                                                                                         $421,451,731.00 *

 

* certification of $425,902,474.00 not met

 

Police and Firemen Survivors Benefit Fund

     This fund provides income for the dependents of deceased policemen and firemen of municipalities which elect to join.  Six municipalities were participating as of June 30, 2003.  There were 94 dependents of deceased employees receiving survivor benefits.

 

Federal Old-Age, Survivors, Disability and Health Insurance

     The Retirement Commission, by statute, is the agent for the State in all matters relating to the Social Security Agreement executed under Section 218 of the Social Security Act.  In that capacity, the Commission extended Social Security coverage to additional employees of several political subdivisions of the State.

 

Connecticut Municipal Employees Retirement System

     The Connecticut Municipal Employees Retirement Act provides for two retirement plans with separate funds for those political subdivisions which elect to participate.  Fund “A” applies to the benefits established in 1945 as amended to date.  There were no municipalities participating in Fund “A” as of June 30, 2003.  Fund “B” applies to the benefits established in 1947 as amended to date.  There were 99 municipalities participating in Fund “B” as of June 30, 2003.

     Active membership was 8,436 with 4,680 retirees and optionees receiving benefits.

     These systems are supported solely by the contributions of the municipalities and the employees, with no contributions by the State.  The rates of contribution by the municipalities are adjusted periodically in such a way that the assets of the funds, together with the present value of future contributions for which the municipalities are obligated, are kept approximately equal to the liabilities in order to maintain the funding on an actuarial basis.

     Public Act 83-383 provides a continuing cost-of-living adjustment (COLA) for municipal employee retirees, payable commencing each July first, if retired for disability, otherwise on the first of July following attainment of age 65 if retired prior to January 1, 2002, at a variable rate, not to exceed 5 percent, based on the assets and liabilities of the fund, provided no COLA adjustment is less than 3 percent.  Public Act 01-80 provides municipal employee retiring on and after January 1, 2002 with a COLA on the first July 1 following their retirement date.  The COLA ranges from 2.5 percent to 6 percent and is based on a formula tied to changes in the consumer price index.  Public Act 01-80 also allows municipal employees who retired before January 1, 2002, and before they turn 65, to receive a 2.5 percent COLA beginning July 1, 2002; on the first July 1 following such retired employees' 65th birthdays, the COLA reverts to the 3-5 percent COLA.

 

Connecticut Probate Judges and Employees Retirement System

     The Connecticut Probate Judges and Employees Retirement System provides income for retired probate court members.  As of June 30, 2003 this system had 381 active members, with 216 retirees and 25 widows(ers) receiving benefits.

 

State’s Attorneys Retirement System

     Under the terms of Sections 51-49, 51-278, 51-287, and 51-288 of the Connecticut General Statutes, the State’s Attorneys Retirement System provides for income to certain retired state’s attorneys and widows(ers) of state’s attorneys.  As of June 30, 2003 this system had four active members, with 12 retirees and seven widows(ers) receiving benefits.

 

Pensions and Retirement – Other Statutory

     Certain statutes provide retirement income for former governors and widows(ers) of former governors, retired county employees, retired law librarians and provisions for certain individuals as stipulated in special acts passed by the General Assembly.

 

Judges, Family Support Magistrates, and Compensation Commissioners Retirement System

     Public Act 81-46, effective October 1, 1982, created the Judges and Compensation Commissioners Retirement System to provide retirement income for judges, compensation commissioners and their widows(ers).  As of June 30, 2003 this system had 213 active members with 120 retired judges, eight retired compensation commissioners, one family support magistrate, 81 widows(ers) of judges and one widow of a family support magistrate receiving benefits.

 

Public Defenders Retirement System

     Public Act 84-421, effective July 1, 1985, created the Public Defenders Retirement System to provide retirement income for certain retired public defenders and widows(ers) of public defenders.  As of June 30, 2003 this system had one active member with four retirees and one widow(er) receiving benefits.