Sec. 7-436i. MERS 2.0 retirement benefit tier.
Sec. 7-459e. Retirement Commission-created defined contribution retirement plan.
Sec. 7-459f. Alternative annuity plan.
Sec. 7-436i. MERS 2.0 retirement benefit tier. (a) As used in this section:
(1) “Active service” means service with a participating municipality for which contributions are required pursuant to subsection (f) of this section;
(2) “Aggregate service” has the same meaning as provided in section 7-425;
(3) “Average annual pay” means the average annual amount of the regular pay an employee received during the five years of active service in which the employee received the highest amount of regular pay;
(4) “Base pay” means the annual salary, wages or earnings of an employee, not including other pay, payments received pursuant to chapter 568 or payouts for accrued vacation time, sick leave or compensatory time;
(5) “Continuous service” has the same meaning as provided in section 7-425;
(6) “Fund” has the same meaning as provided in section 7-425;
(7) “Member” means a member of the municipal employees retirement plan under this part;
(8) “MERS 2.0” means the set of rules applicable to members who first become eligible for membership on or after the applicable date set forth in subsection (b) of this section;
(9) “Other pay” means overtime pay, bonuses and all other compensation of an employee other than an employee's regular pay;
(10) “Public safety employee” means a uniformed member of a municipality's paid fire department or a regular member of a municipality's paid police department; and
(11) “Regular pay” means the base pay of an employee, plus other predictable ongoing compensation as determined pursuant to regulations adopted in accordance with chapter 54 by the Connecticut Municipal Employees Retirement Commission, provided overtime pay shall not be included as predictable ongoing compensation.
(b) The set of rules set forth under this section shall be known as MERS 2.0, which shall operate as another benefit tier within the municipal employees retirement plan set forth in this part.
(1) Any municipality not participating in the municipal employees retirement system may enroll in MERS 2.0 on any date on or after the later of (A) July 1, 2026, or (B) the date of the expiration of a collective bargaining agreement that was applicable to such municipality and in effect on July 1, 2026. For a municipality that has enrolled in MERS 2.0 pursuant to this subdivision, any member who first becomes eligible for membership in the municipal employees retirement system on any date on or after the date of such enrollment shall be enrolled in MERS 2.0.
(2) For a participating municipality, any member who first becomes eligible for membership in the municipal employees retirement system on any date on or after the later of (A) July 1, 2027, or (B) the date of the expiration of a collective bargaining agreement that was applicable to the member's position and in effect on July 1, 2027, shall be enrolled in MERS 2.0.
(c) The provisions of this part shall apply to MERS 2.0 in the same manner and with the same force and effect as if the provisions of said part had been incorporated in full into this section and had expressly referred to MERS 2.0, unless excepted under this section. Where there is a conflict between a provision of said part and this section, the provisions of this section shall prevail with respect to MERS 2.0.
(d) Any member participating in MERS 2.0 shall be eligible for retirement and, provided such member has had five years of continuous service or fifteen years of active aggregate service in a participating municipality, to receive a retirement allowance upon completing the following:
(1) (A) Thirty years of aggregate service in a participating municipality, or (B) five years of continuous service and upon attaining the age of sixty-five years; and
(2) For members who are public safety employees, (A) twenty-five years of aggregate service in a participating municipality, or (B) five years of continuous service and upon attaining the age of fifty-five years.
(e) Notwithstanding the provisions of subsection (d) of this section, any member of MERS 2.0, other than a public safety employee, who (1) is separated from the service of the municipality by which the member is employed, except for cause, (2) has completed at least five years of continuous service but fewer than thirty years of aggregate service, and (3) has not attained the age of sixty-five years, shall have the option of receiving a retirement allowance at any time on or after attaining the age of fifty-five years, provided the retirement allowance shall be payable in such amount as determined by the Connecticut Municipal Employees Retirement Commission to be the actuarial equivalent of the retirement allowance that would have been payable except for the election of such option. Retirement allowances under subsection (d) of this section shall not be subject to the actuarial reduction under this subsection.
(f) Each member participating in MERS 2.0 shall contribute to the fund five per cent of such member's regular pay, except that each member who is a public safety employee shall contribute to the fund eight per cent of such member's regular pay.
(g) (1) Except as provided in subsection (e) of this section, after retirement, in accordance with the provisions of this section, each member participating in MERS 2.0 shall receive, during such member's lifetime, a retirement allowance payable in monthly installments equal to one-twelfth of one and eight-tenths per cent of the member's average annual pay or, for members who are public safety employees, one-twelfth of two and two-tenths per cent of such employee's average annual pay, multiplied by the number of months of such member's aggregate service.
(2) For the purpose of calculating a member's average annual pay, the member's regular pay for a year in which such member held more than one position or in which the regular pay for such member's position changed shall be the sum of the regular pay for all positions held by the member during such year, except that the regular pay for each position shall be multiplied by the fraction of one year for which the member held such position.
(h) The provisions of the following sections shall apply to members participating in MERS 2.0, as applicable: (1) Section 7-432 concerning disability retirement allowances; (2) section 7-433b concerning survivors' benefits for firemen and policemen; (3) subsections (b) to (d), inclusive, of section 7-439g concerning preretirement death benefits; and (4) subsection (a) and subparagraph (G) of subdivision (1) of subsection (b) of section 7-439b concerning cost of living adjustments.
(P.A. 25-174, S. 183.)
History: P.A. 25-174 effective June 30, 2025.
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Sec. 7-438. Continuation of retirement allowance upon other public employment. Participation in state or municipal retirement system. (a) Any member retired under this part who again accepts employment from the state or from any municipality of the state other than a participating municipality shall continue to receive his or her retirement allowance while so employed, and shall be eligible to participate, and shall be entitled to credit, in the state retirement system or such retirement system of such municipality, as applicable, for the period of such employment.
(b) If a member is retired under this part and again accepts employment from the same municipality from which he or she was retired or any other participating municipality, he or she shall be eligible to participate, and shall be entitled to credit, in the municipal employees' retirement system for the period of such municipal employment. Such member shall receive no retirement allowance while so employed except if (1) such employment is for less than twenty hours per week, (2) his or her services are rendered for not more than ninety working days in any one calendar year, provided any member reemployed for a period of more than ninety working days in one calendar year shall reimburse the Municipal Employees' Retirement Fund for retirement income payments received during such ninety working days, or (3) such member does not participate in the municipal employees' retirement system during the period of his or her reemployment.
(c) Notwithstanding the provisions of subsections (a) and (b) of this section, if a uniformed member of a paid municipal fire department or regular member of a paid municipal police department is retired under this part and subsequently accepts employment in a public safety position from any school district or regional school district, which district is a participating municipality, he or she shall continue to receive his or her retirement allowance while so subsequently employed, but he or she shall not be eligible to further participate or be entitled to additional credit in the municipal employees' retirement system for the period of such subsequent employment.
(1949 Rev., S. 892; P.A. 73-519; P.A. 77-122; P.A. 86-243, S. 6, 10; P.A. 87-83, S. 2; P.A. 11-251, S. 3; P.A. 22-39, S. 1; P.A. 24-151, S. 83; P.A. 25-39, S. 8.)
History: P.A. 73-519 permitted retirees resuming employment with state or municipality to continue to receive benefits if not employed by same department or agency from which they retired, reversing previous provisions and deleting restriction concerning number of months to be employed, and excluded resumed work period from credit in system or contributions; P.A. 77-122 added Subsec. (b) re reemployment in same department or agency; P.A. 86-243 permitted retired members who become employed by the state to participate in the state retirement system for the period of state service; P.A. 87-83 amended Subsec. (a) to be applicable to retired members who are employed by a nonparticipating municipality or the state and amended Subsec. (b) to provide that any retired member employed by a participating municipality shall be entitled to retirement credit for such service; (Revisor's note: In 2003 a reference in Subsec. (b) to “Municipal Retirement Fund” was replaced editorially by the Revisors with “Municipal Employees' Retirement Fund” for consistency with customary statutory usage); P.A. 11-251 amended Subsec. (b) to exclude employment of less than 20 hours per week from prohibition on receiving a retirement allowance while employed by municipality, effective July 13, 2011, and applicable to members who retire on or after January 1, 2000; P.A. 22-39 amended Subsec. (b) by adding Subdiv. (3) re participation in municipal employees' retirement system during reemployment, added Subsec. (c) re receipt of retirement allowance and prohibition on eligibility for additional credit for retired uniformed member of paid municipal fire department or regular member of paid municipal police department who accepts subsequent employment in public safety capacity, and made technical changes; P.A. 24-151 amended Subsec. (a) to allow retired member who accepts employment from a municipality other than a participating municipality to participate and be entitled to credit in such municipality's retirement system, effective June 6, 2024; P.A. 25-39 made a technical change in Subsec. (a).
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Sec. 7-459e. Retirement Commission-created defined contribution retirement plan. (a) Not later than July 1, 2026, the Connecticut Municipal Employees Retirement Commission shall create a defined contribution retirement plan to be known as the MERS defined contribution plan.
(b) (1) Each member of the municipal employees retirement system shall contribute one-fourth of one per cent of such member's pay to the MERS defined contribution plan.
(2) In addition to the contributions under subdivision (1) of this subsection, each member participating in MERS 2.0 shall contribute five per cent of such member's other pay to the MERS defined contribution plan, except that each member who is a public safety employee shall contribute eight per cent of such member's other pay to the MERS defined contribution plan.
(3) Payroll deductions for each member of the MERS defined contribution plan shall be made by the appropriate municipal employer.
(4) Each participating municipality shall contribute to the MERS defined contribution plan an amount equal to the contributions required under subdivision (2) of subsection (b) of this section from members participating in MERS 2.0 who are employees of such municipality.
(5) The Connecticut Municipal Employees Retirement Commission shall serve as the administrator of the MERS 2.0 defined contribution plan. Said commission may (A) make deposits or payments to such plan, subject to the terms of such plan, and (B) contract with a private corporation or private institution for the provision of consolidated billing services and other administrative services for such plan.
(6) As used in this section, “MERS 2.0”, “other pay” and “public safety employee” have the same meanings as provided in section 7-436i.
(P.A. 25-174, S. 184.)
History: P.A. 25-174 effective June 30, 2025.
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Sec. 7-459f. Alternative annuity plan. (a) The Connecticut Municipal Employees Retirement Commission may establish and implement an annuity plan that shall be an alternative to the municipal employees retirement system under this part, provided any such annuity plan is approved with the unanimous vote of the trustees set forth in subdivisions (3) and (4) of subsection (b) of section 7-448a. No municipality participating in the municipal employees retirement system as of the date such plan is implemented shall be eligible to participate in such annuity plan. The commission shall prescribe the manner in which such annuity plan may be adopted by any municipality, as defined in section 7-425, that is not participating in the municipal employees retirement system.
(b) Any such annuity plan shall provide that a municipality that adopts such plan shall have the option to transfer to such plan the accounts and assets of any defined contribution retirement plan previously adopted by such municipality. Payroll deductions for each member of the annuity plan implemented under this section shall be made by the appropriate municipal employer.
(c) The State Comptroller shall serve as the administrator of the annuity plan established under this section. The State Comptroller may (1) enter into contractual agreements on behalf of the state with members of such plan to defer any portion of such member's compensation from the adopting municipality, (2) make deposits or payments to such plan, subject to the terms of such plan, and (3) contract with a private corporation or private institution for the provision of consolidated billing services and other administrative services for such plan.
(P.A. 25-174, S. 185.)
History: P.A. 25-174 effective June 30, 2025.
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