State Employees Retirement Commission
At a Glance
PETER R. BLUM, Chairman
NANCY WYMAN, Secretary Ex Officio
Established – 1939
Statutory authority - Chapters 65, 66, 104, 113, 774, 872, 886, pension agreement
Central office - 55 Elm Street,
Hartford, CT 06106
Average number of employees:
Full-time - 87
Part-time - 1
Organizational structure -
The Connecticut State Employees Retirement Commission as of June 30, 2005 consisted of fifteen Commissioners: Peter R. Blum, Chairman; Robert Baus, Actuarial Trustee; Stephen Caliendo, Management Trustee; Charles Casella, Employee Trustee; Robert D. Coffey, Management Trustee; Richard Cosgrove, Jr., Management Trustee; Thomas P. Culley, Employee Trustee; Paul Fortier, Employee Trustee, Stephen Greatorex, Employee Trustee, Mary Johnson, Management Trustee; Salvatore Luciano, Employee Trustee; Steven Perruccio, Employee Trustee; Claude Poulin, Actuarial Trustee; Linda J. Yelmini, Management Trustee; 1 vacant Management Trustee.
The operating agency for the Commission is the Retirement & Benefit Services Division of the Comptroller’s Office – Thomas C. Woodruff, Director.
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 System; 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 2004-05
During the year the Commission met and ruled on 627 retirement applications and additional matters relating to the administration of the retirement systems. In addition, the Medical Examining Board considered 333 disability retirement applications; of this number 372 were approved. A major redesign of the Alternate Retirement Plan (ARP) was achieved for implementation in January, 2006.
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, 2005 is as follows:
Assets at Cost – July 1, 2004 $4,922,252,152.74
Year ended June 30, 2005
Employee Contributions 51,698,753.03
Federal and Other Reimbursements 161,167,205.62 Transfers to Higher Education (45,718,388.05)
State Retirement Contribution Payments –
General Fund 354,400,568.00
State Retirement Contribution Payments –
Transportation Fund 48,916,000.00
Interest and Investment Income 329,385,108.58
Gain on Sale of Investments 45,272,672.96
Refunds on Termination, or Death 3,397,094.08
Retirement Allowances Paid 882,466,656.95
Interest Awarded 773,410.77
Professional Services 123,810.10
Banking Service Charges 28,515.77
Retirement Commission Services 308,115.22
Loss on Sale of Investments 43,324,455.37
Net Assets At Cost – June 30, 2005 $4,948,673,306.57
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 58,672 active and 2,999 inactive (vested) employees were members as of June 30, 2005.
Subsequent to revised certification by the Commission on December 18, 2003, based upon the actuary’s
recommendation, the General Assembly made the following appropriation:
General Fund Appropriation $354,400,568.00
Special Transportation Fund Appropriation 48,916,000.00
Recoveries from Other Funds 115,446,120.47 *
Appropriation Request for Fiscal Years
Starting July 1,
recoveries for FY04 of $2,470,652.92 were credited subsequent to the close of
04, therefore a shortage of $1,194,515.48 was reported.
**certifications of $516,298,168.00 exceeded
Police and Firemen Survivors Benefit Fund
This fund provides income for the dependents of deceased policemen and firemen of municipalities which elect to join. Seven municipalities were participating as of June 30, 2005. There were 98 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, 2005. Fund “B” applies to the benefits established in 1947 as amended to date. There were 100 municipalities participating in Fund “B” as of June 30, 2005.
Active membership was 8,508 with 4,977 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, 2005 this system had 390 active members, with 219 retirees and 29 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, 2005 this system had three active members, with 11 retirees and six 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, 2005 this system had 217 active members with 122 retired judges, eight retired compensation commissioners, one family support magistrate,84 widows(ers) of judges and one widow of a 84family support magistrate receiving benefits, two widows of compensation commissioners receiving benefits, one judge, one compensation commissioner and 1 family support magistrate are in terminated vested status.
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, 2005 this system had one active member with four retirees and one widow(er) receiving benefits.