STATE EMPLOYEES RETIREMENT COMMISSION MEDICAL EXAMINING BOARD For DISABILITY RETIREMENT |
55 ELM STREET HARTFORD, CONNECTICUT 06106-1775 Telephone (860) 702-3480 Facsimile (860) 702-3489 |
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STATE OF CONNECTICUT | ||
RETIREMENT SERVICES DIVISION OFFICE OF THE STATE COMPTROLLER |
ATTENTION: | All Human Resources and Payroll Officers |
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SUBJECT: | STATE EMPLOYEES RETIREMENT SYSTEM INFORMATION PROCEDURES FOR PROCESSING EMPLOYEE RETIREMENT APPLICATIONS |
I. INTRODUCTION
The purpose of this memorandum is to provide agency human resources' staff with direction concerning the processing of State Employees Retirement System (SERS) retirement applications.
SERS member's retirement applications will fall into one of the following two general categories: eligible for direct transition from active employment to immediate retirement or vested for future retirement benefits.
II. SERS MEMBERS ELIGIBLE FOR IMMEDIATE RETIREMENT
Please refer to the attached SERS Tier I, Tier II, Tier IIA, Tier III and the Hybrid Plan Eligibility Requirements chart (Attachment I) to determine the eligibility of an employee for immediate retirement. If an employee is eligible for an immediate retirement, the following resources are available to help them transition into retirement.
A. Retirement Information and Counseling Sessions
B. Retirement Application Process
Agencies must process retirement applications (CO-898) for employees who are eligible and ready to retire and must submit original paperwork to the Retirement Services Division prior to the effective date of retirement.
The calculation of the average salary used to compute the retirement benefit includes the determination of the three highest paid years of state service. Accordingly, Part III of the retirement application should be completed reflecting actual wages earned except for members whose earnings will be subject to the federal limitation under IRC, Section 401(a)(17) which limits the compensation upon which retirement benefits calculated.
Up to date CORE-CT records identifying vacation accrual balances must be submitted with the retirement application if a member's accrued vacation days are being used to fulfill the member's minimum requirements for early or normal retirement.
For easy reference, refer to the Check List for Retirement Applications (Attachment II) and Additional Information with Retirement Application (Attachment III) attached to this memorandum.
Important Note: New retirees must complete and submit IRS Form W4P and CT-W4P for federal and state withholding tax.
All retirement forms are now available online at the following link: http://osc.ct.gov/agencies/forms/retire/index.html
Any questions Human Resource staff have concerning the retirement application process should be referred to the Retirement Audit Unit at 860-702-3521.
C. Retirement Disability Application Process
If and employee becomes disabled as a Tier I member and has five (5) years of service, the employee may be eligible for disability retirement benefits. All other Tier members require ten (10) years of vesting to be eligible for a disability retirement benefit. If the employees disability is job related, the employee may be eligible to receive benefits regardless of his/her years of service.
The Retirement Application (CO-898) and Disability Retirement Application Medical Report (CO-649) must be completed. For individualized information, Human Resources staff may contact the Retirement Services Division Counseling Unit.
The determination of eligibility for state disability retirement benefits is made by the Medical Examining Board (MEB). If an employee qualifies for a disability retirement, the on-line benefit estimators should not be used to determine his or her retirement benefit.
III. VESTED SERS MEMBERS NOT ELIGIBLE FOR IMMEDIATE RETIREMENT
SERS members are generally vested after five (5) years of actual State service. Tier III and Hybrid Plan members hired after July 1, 2011 require ten (10) years of vesting. Again, please refer to the SERS Tier I, Tier II, Tier IIA, Tier III and the Hybrid Plan Eligibility Requirements chart to determine the eligibility of an employee for immediate or vested retirement (Attachment I).
A. Retirement Information and Counseling Sessions
Vested members are encouraged to view the Workshops on the Web and to utilize the Benefit Estimators to calculate their estimated future benefit based upon current plan provisions and benefit formulas. It is important to note that eligibility and formulas can change in the future. If such changes occur, the benefit estimators will be revised accordingly.
B. Retirement Application Process
Agencies should follow the same procedure for vested employees as they do for employees that transition directly into retirement. Except that the member should not complete an option form, spouse waiver form or marital status affidavit at this time. Instead, the application should be accompanied by a copy of the member's birth certificate and a completed Form CO-744V (health services after retirement) only.
The Audit Unit will send the option form, spouse waiver form and marital status affidavit to the member for completion several months before he or she reaches their minimum retirement age. It is important to note that a retirement benefit will not be automatic at the minimum retirement age: a vested rights retiree still must execute and return the forms sent to him or her. No retirement benefit will be paid until all required forms are received and properly executed.
It is even more important for the vested rights retiree to promptly notify
the Division of all address changes. This is the vested rights retiree's
responsibility and it is VERY important. A vested rights retiree cannot receive
a retirement benefit if he or she cannot be located.
Vested members who complete and submit an application for vested rights
retirement will receive an abbreviated annual statement of benefits each year.
Special Note: For SERS members that are either eligible for immediate retirement or will be eligible for a future vested rights retirement benefit and have a purchase request or an additional retirement credit request in progress, agencies should make an appropriate notation on the retirement application. Only bank checks will be accepted for service purchases at the time of retirement. This requirement is due to the fact that personal checks must clear through the bank before a retirement benefit can paid. Any questions regarding purchasing or the obtaining of additional retirement credit may be directed to the Retirement Purchasing Unit at 860-702-3511.
IV. CONCLUSION
Questions may be directed as follows:
Retirement Benefit Eligibility - Counseling Services Unit, 860-702-3490;
Retirement Application Process and Vested Rights - Audit Unit, 860-702-3521;
Refunds - Data Base Unit, 860-702-3515;
Purchases or Obtaining Additional Retirement Credit - Purchasing Unit, 860-702-3511.
Very truly yours,
STATE EMPLOYEES RETIREMENT COMMISSION
KEVIN LEMBO, SECRETARY EX OFFICIO
BY:
Brenda K. Halpin, Division Director
Retirement Services Division
BH/CN/BP/KS:eh
Attachments
I,
II,
III
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