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RETIREMENT As an employee of the University, you are eligible to participate in one of three retirement plans, subject to eligibility requirements. The three plans are: the State Employee's Retirement System (SERS), Alternate Retirement Program (TIAA-CREF) and the Teacher's Retirement System.
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AN EXAMPLE:
Suppose you retire at age 63. Let's assume your average salary equals $27,000 and you have 10 years of credited service.
Here's how your basic annual benefit is figured:
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Please note: in this example, the breakpoint for 1996 is $24,300.
TIER I PLAN ELIGIBILITY
If you were hired on or before July 1, 1984 and elected to participate in the State Employees Retirement System, you are a member of Plan A, Plan B or Plan C of the Tier I plan. Membership was elected between October 1, 1973 and December 31,1973 if you were hired prior to April 1,1973; mandated thereafter by statute if you were hired prior to July 2, 1984, or elected by you in lieu of membership in or by transfer of membership, if eligible, from Tier II or another state system, through October 1, 1985, the last date on which a transfer of membership was allowed.
As a Tier I member, if you leave state service and are reemployed you may also be a member of the Tier I plan if your break in service was less than five years or less than your total period(s) of previous service for which contributions were made, whichever is longer; if you are a vested member of the system; or if you were retired and have been reemployed on a permanent basis for at least 6 months of continuous service.
As a member of Tier I you may receive additional retirement credit, in accordance with the Connecticut General Statutes, for various other types of service, although you were required to purchase this service when you had the opportunity to do so. Such purchases include, but are not limited to the following:
Military Service WW II 12-07-41 - 12-31-47
Korean Conflict 06-27-50 - 01-31-55
Vietnam Era 12-22-61 - 07-01-75
National Emergency Service (maximum of three years), prior Connecticut public school service, prior service under the Connecticut Municipal Employees' Retirement System, service as a member of the General Assembly, instate or out of state private educational institution service, if qualified. Please refer to your plan description for specific information.
TIER I PLAN
Tier I provides for the following types of retirement options:
NORMAL: Age 55 with 25 years of service
Age 65 with 10 years of service
Age 70 with 5 years credited service
EARLY: Age 55 with 10 years of actual state service
Age 60 with 10 years of credited service
DISABILITY: Job-Related (No minimum length of service)
Non-Job Related (With 5 years retirement service credit)
HAZARDOUS DUTY: Any age with 20 years of hazardous duty service.
PRE-RETIREMENT DEATH BENEFITS
In the event of your death while still employed, the System is designed to provide certain benefits to your surviving spouse and children or designated beneficiary depending upon your age and length of credited service upon your death.
The benefit options have various eligibility requirements and payment options. Detailed information is available in the SERS Summary Benefits booklet.
VESTED RIGHT TO A BENEFIT
As a Tier 1 member, you may have earned a vested right to a retirement benefit when you leave State service if you are under age 55 with 10 years actual state service or under age 60 with 10 years credited service. The last five years must be continuous service, without a severance of a year or more.
HOW BENEFITS ARE FIGURED (Tier I)
NORMAL RETIREMENT:
Your benefit is based on a formula.
As a member, you may retire with a normal retirement benefit on the first day of any month in which you attain age 65 with at least 10 years service, or age 55 with at least 25 years of service. The normal retirement benefit is calculated using one of two formulas, depending on whether you are in Plan B, or either Plan A or C. The formulas take into account service and average salary.
The Benefit Formulas:
For Plan B members, the basic normal retirement benefit will be calculated as follows.
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Formula Used Until Age 65 or Receipt of a Social Security Disability Reward, if Earlier
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If you are a Plan B member, your benefits are reduced at age 65 or upon receipt of a Social Security disability award, whichever occurs earlier. If you are a Plan A or Plan C member, your benefits are not subject to a reduction upon receipt of Social Security benefits.
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Formula Used Beginning At Age 65 or Receipt of a Social Security Disability Award, if Earlier
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For a Plan A or Plan C member, the basic benefit will be calculated as follows :
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Both the Plan B and the Plan A or C formulas will give you an annual retirement benefit. To find your monthly benefit, divide by 12.
AN EXAMPLE:
Suppose you retire at age 58 and you have 28 years of full-time service. Let's assume your average salary equals $30,000 and you are a Plan B member. Here's how your basic annual benefit is figured using the Plan B formula:
Formula Used Until Age 65
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At that time, your Plan B benefit will be recalculated, as follows:
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If you were a Plan A or Plan C member, your basic annual benefit would remain the same each year for your lifetime (no reduction at receipt of Social Security).
THE ALTERNATE RETIREMENT PROGRAM:
The Alternate Retirement Program (ARP) is available to Unclassified employees of the University. ING is the Third Party Administrator (TPA) for this program. If you choose not to elect the ARP within six months of employment, you automatically become a member of SERS, TIER IIA. The ARP is a defined contribution plan. Contributions are defined as a total of 13% of salary, and are applied to 24 investment options from well-known mutual fund and insurance companies. The ARP provides immediate vesting of all contributions.
Once enrolled, you will receive a confirmation from ING and a Personal Identification Number (PIN) to access your account on the automated toll-free line and the Internet. Changes in future allocations may be made at any time. Transfers may be made by telephone or by accessing your account on the Internet.
A State of Connecticut Defined Contribution Plan custom website at www.CTdcp.com provides you a direct link to account information and transaction capability. Please check the website for comprehensive information on the ARP.
COST
Employee Contribution: 5% of gross income
Employer Contribution: 8% of gross income
SALARY REDUCTION (TAX BENEFIT)
As an ARP member, your 5% contributions are made by salary reduction and therefore are tax-deferred from federal and state income tax up to Internal Revenue Code limits.
DETERMINING RETIREMENT INCOME
If you are a member of the ARP, quarterly comprehensive statements are sent to you. Fund performance reports will be included with your statements. You will be able to take advantage of one-on-one sessions to discuss your specific issues (e.g., asset allocation, pre-retirement counseling, retirement planning).
TERMINATION OF EMPLOYMENT
Your account is fully portable. You can roll over your account to another employer-sponsored retirement account or traditional IRA. (For employer-sponsored retirement accounts, you must check with the plan administrator to determine if your new retirement account accepts rollovers.)
SMALL SUM POLICY/WITHDRAWAL
The small sum policy provides for the return of a portion of the accumulations in the ARP for those terminated ARP members who participated for less than five (5) years. Such terminated members may receive the portion of the accumulations that are attributable to their contributions plus any investment earnings. The portion of accumulations that are attributable to the state’s contributions will be returned to the state. Additional withdrawal timeframes and surrender charges may apply.
SERVICES
The Third Party Administrator provides ARP participants with comprehensive services.
In addition to the custom website, customer service is available toll-free at 1-800-584-6001.
RELATED WEB SITES
ING (http://www.ing.com/index.jsp)
Social Security Administration (http://www.ssa.gov/)
TIAA-CREF (http://www.tiaa-cref.org)
State of CT Defined Contribution Home Page
(http://www6.ingretirementplans.com/SponsorExtranet/Connecticut/_
TEACHER'S RETIREMENT SYSTEM (TRS)
Managerial staff, instructional and administrative faculty of the University are eligible for membership in the Teacher's Retirement System. TRS is a defined benefit plan which provides a pension based upon the average of your three highest year's earnings, age at retirement and length of service. TRS requires a pre-tax contribution of 7% from your salary on a bi-weekly basis.
Under the Teacher's Retirement System, you are eligible for Normal Retirement if your retire:
at age 60 or later and
you have completed a combination of 20 years of public school service in Connecticut and/or at Central Connecticut State University.
You may also be eligible for Normal Retirement at any age if you have completed a combination of 35 years of public school service in Connecticut and/or CCSU.
HOW BENEFITS ARE FIGURED
You may calculate your Normal Retirement benefit by using the following formula:
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Formula Used Beginning At Age 65 or Receipt of a Social Security Disability Award, if Earlier
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For example, suppose you retire at age 64 with 22.5 years of Credited Service. Assume your Average Salary was $54,000. Here is how the formula works:
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BENEFIT LIMITS
Under the retirement system, the maximum benefit you can receive is 75% of your average annual salary.
PRE-RETIREMENT DEATH BENEFITS
In the event of your death while still employed, the System is designed to provide certain benefits to your surviving spouse and children or designated beneficiary depending upon your age and length of credited service when you die.
The benefit options have various eligibility requirements and payment options. Detailed information is available in the TRS Summary Benefits booklet.
APPLYING FOR BENEFITS
In order to receive your retirement benefits, you must file an application with the Teacher's Retirement Board. Your benefits are effective the first of the month following the date you filed your application.
The application may be obtained from the Teacher's Retirement Board, 21 Grand Street, Hartford, CT 06106.
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1615 Stanley Street, New Britain, CT 06050 860.832.CCSU or toll free instate 1-888-733-2278 |
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Last Update: Tuesday January 10, 2006 |