Bill Summary: SB 438 - Teachers' Retirement System Revisions

• Effective Date: July 1, 2020; makes comprehensive updates to Connecticut's Teachers' Retirement System statutes to align with current practices and legal requirements.

• Unfunded Liability Amortization: Changes the method from a level percentage of expected annual member salaries to a transition over five consecutive fiscal years from a percentage-based approach to a level payment structure.

• Mandatory Contributions: Maintains 7% regular contributions plus 1.25% health contributions effective January 1, 2020, with exceptions for certain state employees who have vested health benefits.

• Benefit Calculations and Eligibility: Updates provisions for normal, early, proratable, and deferred vested retirement benefits; increases maximum retirement age from 70½ to 72 for members attaining age 72 on or after January 1, 2020.

• Various Administrative Updates: Clarifies definitions (including "average annual salary" based on three highest annual salaries), updates benefit payment options (Plan N, C, and D), refines rules for retirement incentive plans, and modifies provisions for reemployed retired teachers and disability benefits.