2008 Legislation
Public Act No. 08-112, AN ACT INCREASING THE HEALTH INSURANCE SUBSIDY TO RETIRED TEACHERS AND CONCERNING CREDITED SERVICE FOR TEACHERS' RETIREMENT
This act was signed by Governor on May 27, 2008.
TRB will pay a subsidy of $220 per month to a board of education on behalf of a retired member, spouse, surviving spouse or civil union partner who has (1) attained the required age to participate in Medicare Part A (Hospital Insurance), (2) does not have sufficient quarters on her/his behalf or as a spouse to qualify for such coverage without paying a premium to purchase Medicare Part A and (3) is paying a minimum premium of at least $220 per month toward her/his health plan, excluding the cost of dental insurance, through her/his board of education. Effective July 1, 2008
Allows a member to purchase in excess of ten (10) years of out of state service, provided the member pays the full actuarial cost resulting from the purchase of such out of state service in excess of ten (10) years). Effective July 1, 2008
Prohibits the rescinding of retirement credit of a member who was not notified prior to December 1, 2003 that she/he was not properly certified for the position in which the teacher is or was employed. If the member is notified on or after July 1, 2008 that she/her was not properly certified for his or her position, she/he will not receive retirement credit until being properly certified for her/his position. Effective on passage May 27, 2008
Public Act 08-76, AN ACT REVISING STATUTES CONCERNING THE TEACHERS' RETIREMENT SYSTEM TO CONFORM TO THE INTERNAL REVENUE CODE.
This act was signed by the Governor on May 27, 2008. To amend sections of the general statutes concerning the Teachers' Retirement System to limit the additional voluntary contributions a member may contribute, limit the maximum amount of the annual allowable retirement benefit and incorporate Internal Revenue Code minimum distribution rules.
Provides for a grandparent clause that allows a TRB member, who became a member of the system prior to January 1, 1996, to be exempt from the maximum annual earnings limitation allowed under Section 401(a) 17 of the Internal Revenue Service Code.
Changes the definition of credited interest from “which shall be substantially earned by the funds of the system” to consistent with industry standards and practices.
Conforms the annual retirement benefit maximum annual limit to Section 415 of the Internal Revenue Code. For 2008, this limit is $185,000 or 100% of compensation for the highest 3 years, whichever is less. This amount is adjusted annually and actuarially adjusted based on the age at retirement. Also, requires that a member cannot make after tax Voluntary contributions in excess of the annual limitation imposed under Section 415(c).
For post January 1, 1996 TRB membership, requires that the maximum annual earnings comply with the maximum earnings limitation of Section 401(a) 17 of the Internal Revenue Code. For 2008, that limitation is $230,000.