SB 00873 Summary

• Establishes the Connecticut Teachers' Retirement Fund Bonds Special Capital Reserve Fund to secure payment of principal and interest on bonds issued for teacher retirement obligations, with deposits from the Connecticut Lottery Corporation.

• Requires the Connecticut Lottery Corporation to transfer excess lottery revenues to the reserve fund until it reaches a required minimum capital reserve amount, after which excess funds go to the General Fund.

• Changes the amortization of unfunded liabilities from a 40-year period to a 30-year closed period for liabilities as of June 30, 2018, with future gains and losses amortized over separate 25-year periods beginning in fiscal year 2020.

• Requires the Teachers' Retirement Board to approve a credited interest percentage of no more than 4% per annum and a return assumption of 6.9% per annum within 14 business days after the state budget act for the biennium ending June 30, 2021 becomes effective, or the reserve fund provisions terminate.

• Appropriates $380,901,255 from the General Fund for the fiscal year ending June 30, 2019, for deposit into the reserve fund to help stabilize the teachers' retirement system.