CT HB06586

Increases the Budget Reserve Fund threshold from 10% to 15% of net General Fund appropriations before surplus transfers are redirected to other uses.

Modifies Budget Reserve Fund transfers to include: 50% of projected surplus from January financial statement, proceeds from state property sales, amounts exceeding revised April revenue estimates, and year-end unappropriated surplus.

Directs surplus revenues above the Budget Reserve Fund cap to the State Employees Retirement Fund (up to 5% of unfunded past service liability) and debt reduction through redemption, open market purchases, or defeasance.

Requires surplus revenues through fiscal year 2017 to be used for redeeming short-term notes or reducing obligations under the financing plan authorized by Public Act 09-3.

Allows the Secretary of the Office of Policy and Management to direct court settlement payments to the other post employment benefits trust fund, State Employees Retirement Fund, or Teachers' Retirement Fund.