RETIREMENT SERVICES DIVISION MEMORANDUM 2018-02

January 31, 2018

TO THE HEADS OF ALL STATE AGENCIES

I. INTRODUCTION

The purpose of this memorandum is to provide general information for all state agencies and specific information for higher education agencies for the appropriate enrollment of employees hired from July 31, 2017 through the present pursuant to the 2017 agreement between the State and the State Employees Bargaining Agency Coalition (SEBAC).

At its January 18, 2018 meeting the State Employees Retirement Commission (Commission) unanimously approved a recommendation to direct the Retirement Services Division (Division) to work with the agency employers to alert those employees that were first hired on or after July 31, 2017 and were erroneously placed in Tier III that the proper placement for this population is Tier IV. The subset of employees within this population that are employed by institutions of higher education and the Board of Regents central office are entitled to elect membership in one of the following plans: (1) the Alternate Retirement Program; (2) the SERS Hybrid Plan, (3) if eligible the Teachers Retirement System; or (4) remain in Tier IV.

Pursuant to the Commission's decision and in recognition of the delay in the implementation of the 2017 SEBAC agreement, such employees hired between July 31, 2017 and September 14, 2017 have until February 28, 2018 to make their one-time irrevocable retirement plan election.

II. GENERAL INFORMATION

The 2017 SEBAC agreement provided for the implementation of a new State Employees Retirement System retirement plan.
State employees first hired on or after July 31, 2017 should have become members of the new Tier IV retirement plan unless they were employed in a position statutorily defined as a state teacher or a professional staff member in higher education and consequently eligible to choose membership in another state retirement plan.

However, the delay in the ratifying the 2017 agreement caused a delay in the Division's processes for making the necessary changes needed to implement the new retirement plan. As such employees hired from July 31, 2017 through the date the updated enrollment forms and CORE_CT payroll codes became available were placed in the Tier III retirement plan including those individuals employed in a position statutorily defined as a state teacher or a professional staff member in higher education.

A. Core-CT HMRS Payroll Retirement Coding

New SERS Tier IV and ARP Core-CT HRMS retirement deduction codes have been created as follows:

Agencies must identify all new employees hired on or after July 31, 2017 who were added to CORE_CT with Tier III payroll retirement coding and change such employees coding to SERS Tier IV. As the amount of employee contributions required for Tier IV membership are higher than those required for Tier III membership, retroactive plan contributions adjustments will be required for such employees.

III. SPECIFIC INFORMATION FOR HIGHER EDUCATION AGENCIES

In the Division's Memorandum 2017-04 agencies were advised of the availability of the updated CO-931h form to be completed for employees hired in a position statutorily defined as a state teacher or a professional staff member in higher education on or after July 31, 2017 as these individuals were eligible to choose membership in the SERS Tier IV retirement plan, the Alternate Retirement Program, the SERS Hybrid Plan and if eligible the Teachers Retirement System on the first day of employment. Pursuant to the Commission's decision and in recognition of the delay in the implementation of the 2017 SEBAC agreement, such employees hired between July 31, 2017 and September 14, 2017 have until February 28, 2018 to make their one-time irrevocable retirement plan election. Agencies must identify affected employees and advise them of this important deadline. Agencies should document their notification process as employees who do not respond will automatically default into the applicable State Employee Retirement Plan depending on the respective bargaining unit as agreed upon through the collective bargaining process.

Special Note for the University of Connecticut: Adjunct faculty members at the University of Connecticut who do not make an election within the period noted above will be defaulted to membership in ARP.

IV. CONCLUSION

To allow our office to remain in compliance with the Commission'
s decision it is important that all agencies initiate the completion of the appropriate CO-931form for all employees hired since July 31, 2017. It is the responsibility of each state agency that they advise their employees of the information provided above.

Any questions regarding the information provided herein may be directed to Assistant Division Director Colin Newman at 860-702-3482 or by email at colin.newman@ct.gov. 

Very truly yours,
STATE EMPLOYEES RETIREMENT COMMISSION
KEVIN LEMBO, SECRETARY EX OFFICIO

BY:

John Herrington, Director
Retirement Services Division

JH/cn

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