SB 396 Summary

• Changes the definition of "average annual salary" from "three years of highest salary" to explicitly mean "the three highest annual salaries received as an active member," clarifying salary calculations for retirement benefits.

• Increases mandatory employee contributions from 7% to 8.25% of salary (changing from 7% regular plus 1.25% health contributions to 8.25% regular contributions), effective January 1, 2020, with exceptions for state employees meeting certain health benefit criteria.

• Eliminates the Children's Center and its successors as an employer under the retirement system for members hired on or after July 1, 2022, while grandfathering in previously hired members.

• Makes membership in benefit options mandatory for retiring members (changing "may elect" to "shall elect") and establishes detailed procedures for benefit option elections, spousal options, and period-certain versus coparticipant benefit selections.

• Effective July 1, 2022, with amendments affecting definitions, contribution rates, retirement benefits calculations, survivor benefits, and administrative procedures for the Connecticut teachers' retirement system.