The retirement plans described below are the current versions available to new hires. If you were hired prior to 7/1/17 or are a postdoctoral research associate hired prior to 1/14/22, your plan features will be different. Information about the SERS Tier I, II, IIA, and III Plans can be found at the following website: https://www.osc.ct.gov/rbsd/stateretire.htm. For ARP participants, the employer and employee contributions may vary and are identified in your paycheck deductions and Prudential statements.
The following chart describes the SERS Tier IV retirement plan for employees hired on or after 7/1/17.
| Type of Plan | Defined Benefit |
|---|---|
| Eligibility | State Employees (full- and part-time) |
| Employee Contribution | 5% (8% Hazardous Duty) of compensation (pre-tax)(plus up to an additional 2% for adverse actuarial performance) Mandatory 1% of compensation (pre-tax) to a defined contribution plan |
| Employer Contributions | Actuarially determined 1% of compensation (pre-tax) to a defined contribution plan |
| Benefit Calculation | Formula based, in part, on average of 5 highest years earnings and years of service. |
| Investment Method | Professional Managed |
| Investment Risk | Employer |
| Earliest Benefit Eligibility | Age 58 +10 years of vesting service |
| Normal Retirement Age | Age 63, 25 years of vesting service Age 65, 10 years of vesting service Hazardous Duty Retirement: Any age after completing 25 years of hazardous duty service |
| Disability Retirement | Yes, at any time for service-related disability. If unrelated to service, 10 years of vesting service required. |
| Minimum Vesting Period | 10 years vesting service |
| Benefit Form | Lifetime monthly benefit payment |
| Cost of Living Adjustments | Yes |
| Additional Employee Contributions? | No |
| Pre-Retirement Death Benefit? | Spousal benefit, if employee met age and service required for immediate retirement or completed 25 years of service (at any age). If not, contributions are refunded. |
| Purchase of Service Credit | Allowed (restrictions apply) |
| Rollovers from other retirement plans? | No |
| Limit on wages used to calculated contributions | IRS Limits Apply |
| Employee Social Security & Medicare Participation | Both |
| Portability | None |
| More Information | www.osc.ct.gov/rbsd/stateretire.htm |
The State Employees Retirement System Hybrid Plan (Hybrid) is available to AAUP, UCPEA, Management/Confidential, and Law School Faculty. It is a defined benefit plan (pension) with a cash-out option. Employees contribute 8%, plus an additional 2% for adverse actuarial performance. There is a mandatory 1% contribution to 401a, which the State matches.
Employees must serve for 10 years to vest in the Hybrid Plan. At retirement, vested employees have a choice of a SERS benefit (pension) or a cash out employee contributions. If the cash out option is chosen, the employee receives their contributions, plus a 5% State match, plus 4% interest.
- Plan Document
- Enrollment Form
- Beneficiary Form
The following chart describes the SERS Hybrid Plan retirement plan for employees hired on or after 7/1/17.
State Employees Retirement System Hybrid Plan
| Type of Plan | Defined Benefit with a “CashOut” Option |
|---|---|
| Employee Contribution | 8% of compensation (pre-tax)(plus up to an additional 2% for adverse actuarial performance) Mandatory 1% of compensation (pre-tax) to a defined contribution plan |
| Employer Contributions | Actuarially determined 1% of compensation (pre-tax) to a defined contribution plan |
| Benefit Calculation | Formula based, in part, on average of 5 highest years earnings and years of service. |
| Investment Method | Professional Managed |
| Investment Risk | Employer |
| Earliest Benefit Eligibility | Age 58 +10 years of vesting service |
| Normal Retirement Age | Age 63, 25 years of vesting service Age 65, 10 years of vesting service |
| Disability Retirement | Yes, at any time for service-related disability. If unrelated to service, 10 years of vesting service required. |
| Minimum Vesting Period | 10 years vesting service |
| Benefit Form | Lifetime monthly benefit payment OR One-time, lump-sum “cash out” |
| Cost of Living Adjustments | Yes, if lifetime monthly benefit payment elected |
| Additional Employee Contributions? | No |
| Pre-Retirement Death Benefit? | Spousal benefit, if employee met age and service required for immediate retirement or completed 25 years of service (at any age). If not, contributions are refunded. |
| Purchase of Service Credit | Allowed (restrictions apply) |
| Rollovers from other retirement plans? | No |
| Limit on wages used to calculated contributions | IRS Limits Apply |
| Employee Social Security & Medicare Participation | Both |
| Portability | None |
| More Information | www.osc.ct.gov/rbsd/stateretire.htm |
The following chart describes the Alternate Retirement Program (ARP) for employees hired on or after 7/1/17 and for postdoctoral research associates hired on or after 1/14/22.
Alternate Retirement Program (ARP)
| Type of Plan | Defined Contribution |
|---|---|
| Employee Contribution | 6.5% of compensation (pre-tax); employees may elect to contribute 5% of compensation (pre-tax) Postdoctoral research associates: 5% |
| Employer Contributions | 6.5% of compensation |
| Benefit Calculation | Based, solely, on contributions and investment performance |
| Investment Method | Employee-directed through menu of mutual or annuity funds |
| Investment Risk | Employee |
| Earliest Benefit Eligibility | Age 55 |
| Normal Retirement Age | Age 65 |
| Disability Retirement | No; employer-provided disability insurance policies. May continue 13% contributions to plan during disability. |
| Minimum Vesting Period | None (immediate) |
| Benefit Form | Flexible (lump sum, periodic, or monthly payment) |
| Cost of Living Adjustments | Not applicable |
| Additional Employee Contributions? | No |
| Pre-Retirement Death Benefit? | Account balance payable to spouse or named beneficiary, as applicable |
| Purchase of Service Credit | Not applicable |
| Rollovers from other retirement plans? | Allowed |
| Limit on wages used to calculated contributions | IRS Limits Apply |
| Employee Social Security & Medicare Participation | Both |
| Portability | Yes, if employee separates from service before 10 years of plan participation |
| More Information | www.CTdcp.com |
| For Postdoctoral Associates: Please note, should you elect to waive retirement as a Postdoc, and in the future are hired into a full-time retirement eligible position under a non-Postdoc title, you would be eligible to elect a retirement plan from the available plan options at that time. | |
Teachers Retirement System (TRS)
| Type of Plan | Defined Contribution |
|---|---|
| Eligibility | State employees in a position requiring CT teaching certification or employees teaching in CT higher education system (half-time or more). There may be CBA limitations. |
| Employee Contribution | 8.25% : (7% pension, 1.25% retiree insurance fund) of compensation (pre-tax), excluding earnings from coaching, summer school, or non-teaching. |
| Employer Contributions | Actuarially determined |
| Benefit Calculation | Formula based on average of 3 highest years earnings multiplied by years of service. |
| Investment Method | Professionally managed |
| Investment Risk | Employer |
| Earliest Benefit Eligibility | 20 years of service (15 in CT), age 55 25 years of service (20 in CT), any age |
| Normal Retirement Age | Age 60 + 20 years of CT service Any age, 35 years of service (25 in CT) |
| Disability Retirement | Yes, disability allowance available |
| Minimum Vesting Period | 10 years CT service |
| Benefit Form | Monthly benefit payment |
| Cost of Living Adjustments | Yes |
| Additional Employee Contributions? | Yes, into Voluntary Account (after tax only) |
| Pre-Retirement Death Benefit? | Spousal benefit payable if employee met age and service requirements for retirement. If not, survivorship benefit will be paid. |
| Purchase of Service Credit | Allowed (restrictions apply) |
| Rollovers from other retirement plans? | No |
| Limit on wages used to calculated contributions | IRS Limits Apply |
| Employee Social Security & Medicare Participation | Medicare only |
| Portability | None |
| More Information | www.CTdcp.com |
Retiree Health Fund Contributions
Generally, employees who qualify for State-paid healthcare under the State Employee Medical Plan are required to contribute 3% of their compensation on a pre-tax basis to offset the cost of future retiree healthcare benefits. Employees hired prior to 7/1/17 are required to contribute for 10 years; employees hired on or after 7/1/17 are required to contribute for 15 years. Employees who leave prior to becoming eligible for retiree health benefits qualify for a refund of their contributions.
Employees who have earned retiree health benefits through a previous employer can apply for an exemption. If granted, no Retiree Health Fund contributions will be required and the employee is exempted from eligibility for the Retiree Health Plan.
More information about the Retiree Health Fund is available at 3% Contribution for Retiree Health Coverage (ct.gov).
Eligibility for Retiree Health Plan
The rules regarding eligibility for participation in the Retiree Health Plan are based on hire date and retirement plan as outlined in Division Memorandum 2013-06.
Employees who are enrolled in the State’s Basic Life Insurance Plan at retirement will qualify for a reduced amount of life insurance free in retirement. For employees with 25 years or more of service, the amount will be one-half. That amount will be prorated for employees with less than 25 years of service. Employees who retire under a hazardous duty retirement receive one-half regardless of their years of service.
More information about the plan is available at the following website: https://www.osc.ct.gov/empret/grouplife/plandoc.htm#retire.
The State’s 403(b) and 457 plans are voluntary retirement savings plans that offer tax-favored ways to save for retirement. You have the option to defer income either on a pre-tax basis or after-tax (Roth) basis. The plans offer a wide variety of investment options and accept pre-tax funds (rollovers) from other 401, 403(b), and 457(b) government plans and traditional IRAs.
Information, including plan highlights and enrollment forms, is available at www.ctdcp.com or by calling 1-844-505-7283.