Teachers’ Retirement Board

At a Glance

DARLENE PEREZ, Administrator

Leanne Appleton, Assistant Administrator

Established - 1917

Statutory authority – CGS Chapter 167a

Central office - 21 Grand Street,

Hartford, CT 06106

Average number of full-time employees - 29

Recurring operating expenses - $ 2,199,785

Appropriation expended for Funding Normal Cost and Past Service Liabilities and Health Services - $432,851,495

Organizational structure - Administrative Division, Benefit Services Division, Accounting Division,

Information Systems Division.

Mission

The mission of the Teachers' Retirement Board is to obtain adequate funding to pay all benefits and to effectively administer the retirement system; to protect and administer the statutory rights and benefits of members of the State Teachers' Retirement System, and to provide pre/post retirement services.

Statutory Responsibility

The provisions of the Teachers' Retirement System are contained in Chapter 167a of the Connecticut General Statutes to provide retirement, disability, survivorship and health insurance benefits for Connecticut public school teachers and their beneficiaries. The benefits of the program are funded by employee contributions, state appropriations and investment income. The program is intended to provide financial security at retirement for career Connecticut public school teachers, to replace lost income as a result of a disability and to provide benefits to survivors of teachers who die while actively teaching. Members of the system are informed of their rights, benefits and responsibilities to claim benefits by receiving annual statements of benefits, newsletters and topical publications. In addition, individual counseling programs are available, on a limited basis, to assist members in the retirement planning process.

Public Service

The agency is committed to providing each member with the necessary information to make intelligent and informed decisions regarding disability, retirement, survivor, and health benefits. Each non-retired member receives an Annual Statement of Benefits that provides a complete record of their credited service and earnings history. In addition, the agency publishes a newsletter, The TRiB, and a variety of topical publications and brochures to assist in dealing with retirement issues. The agency continues to improve and expand its website www.ct.gov/trb to provide better and timely access of information to members.

Improvements/Achievements 2006-07

The agency continues to adjust its recent organizational changes, reviewing existing procedures and establishing new or adjusting existing procedures to allow us to continue to meet our statutory requirements of issuing retirement benefits to all current and newly retired members and or beneficiaries in a timely manner. We continue to strive for accuracy in the payment of all benefits.

Reducing Waste

The agency continues to save thousands of dollars by utilizing its website as a resource for active and retired members. Bulletins, forms and important notifications are posted to the website for member access, saving office supplies and postage costs. The average savings is approximately $55,000 annually.

Strategic Planning

The number of members retiring is growing each year and these members rely upon us to provide them with specific financial retirement information. The goal of the agency is to restore and maintain an adequate workforce to keep up with the growing demands.

The processes with the Agency are still paper driven therefore it is the goal of the Agency to make its website interactive. This requires the agency to develop a strategic plan within the next two to three years. This project will allow members to gain access to their account information and initiate changes to certain aspects of their own account, such as name, address, taxes, etc., through a secure web access.

We are also participate in a pension benchmarking survey to see what other improvements may help us to serve our membership more efficiently.

Administration - Personnel

Management of the Teachers’ Retirement System is vested in the Teachers’ Retirement Board. The following persons were members of the Teachers’ Retirement Board on June 30, 2007:

Teacher Members

Mrs. Clare H. Barnett Chairperson

Danbury Teacher

Rosalyn B. Schoonmaker

Vice-Chairperson

Retired Teacher

Bridgeport

Marion S. Jewell

Retired Teacher

Darien

Mary Nicholas

Vernon Teacher

Public Members

Eugene Cimiano

Hartford, CT

Elaine T. Lowengard

West Hartford, CT

Deborah Freedman

Simsbury, CT

Martin M. Lilienthal

Meriden, CT

William T. Murray

Danbury Teacher

Honorable

Mark K. McQuillan

Commissioner

State Department

of Education

Honorable

Michael P. Starkowski

Commissioner

Department

of Social Services

Dr. Thomas I. Knox, Jr. M.D

West Hartford, CT

2005-2006 2006-2007

AGENCY STAFF (FUNDED) 29 29

MEMBERSHIP

Active 52,579 53,546

Inactive 8,325 9,444

Retired 25,221 28,042

RETIREMENT DURING THE YEAR 1,682 1,704

Regular retirement 1,119 1,169

Disability retirement 28 34

Early Retirement 439 409

Proratable 48 61

Deferred retirement 48 61

Average age at retirement 59.69 60.17

Average length of service 31.62 31.16

Average salary base $72,792 $74,055

Average annual retirement allowance $44,935 $44,935

AVERAGE ANNUAL RETIREMENT ALLOWANCES

All retirements $37,701 $39,721

Regular retirement $45,114 $47,384

Disability retirement $25,844 $26,103

Early retirement $35,037 $36,774

Proratable retirement $15,595 $16,450

Deferred retirement $11,689 $12,263

RETIREMENT FUND BALANCE 7/1 $6,753,001,734 $6,738,975,482

RETIREMENT PAYMENTS DURING THE YEAR

Total Retirement Payments $1,050,132,506 $1,159,443,411

REFUNDS OF TEACHERS CONTRIBUTIONS $10,823,529 $6,212,663

Total Expenditures for benefits $1,060,956,035 $1,165,656,074

RECEIPTS OF THE RETIREMENT FUND 2005-2006 2006-2007

Teacher contributions, including

Installment payments $ 234,089,789 $242,334,763

Teachers’ personal payments $59,440,494 $34,152,964

Investment Income $393,043,955 $1,254,006,756

State appropriation for Funding normal

cost and past service liabilities $396,248,844 $412,101,958

Interest late assessments (ERIP Plans) $14,250 $1,980

Early Retirement Payments $2,802,639 $2,659,720

STIF Income $434,434 $291,063

Transfer to Health Fund ($39,144,621) ($40,070,052)

Total revenue $1,047,243,522 $1,905,479,152

Retirement Fund Balance 6/30 $6,738,975,482 $7,478,798,560

(investments valued at cost)

2005-2006 2006-2007

HEALTH INSURANCE FUND

BALANCE 7/1 $12,029,036 $20,545,453

Receipts from

Teacher Contributions $53,418,409 $61,423,462

Active and Retired

Investment Income $496,286 $1,567,189

General Fund Income $17,662,849 $20,749,537

Payments to retirees/school districts ($63,061,127) ($62,251,292)

Health Insurance Fund Balance 6/30 $20,545,453 $42,034,349