| RETIREMENT PLAN | SERS TIER IV | SERS TIER IV HYBRID | ALTERNATE RETIREMENT PROGRAM | TEACHERS’ RETIREMENT SYSTEM |
|---|---|---|---|---|
| Type of Plan | Defined benefit and Defined contribution | Defined benefit with a “Cash Out” option and Defined contribution | Defined contribution 401(a) | Defined benefit |
| Eligibility | All state employees in retirement eligible positions | Teachers and professional staff members within the CT higher education system and central office staff of Department of Higher Education | Teachers and professional staff members within the CT higher education system and central office staff of Department of Higher Education | Municipal/State employees in a position that requires State Department of Education certification, or State employees of the CT Higher Education system in an educational role |
| Employee Contribution (% of pre-tax compensation) | 5% – defined benefit 1% – defined contribution | 8% – defined benefit 1% – defined contribution | 6.5% (default) or option to elect 5% – new ARP 5% – legacy ARP (entry date prior to 9/1/2017) | 8.25% Excludes earnings from coaching, summer school, or non-teaching positions |
| Employer Contribution (% of pre-tax compensation) | Actuarially determined – defined benefit 1% – defined contribution | Actuarially determined – defined benefit 1% – defined contribution | 6.5% – new ARP 7% – legacy ARP (entry date prior to 9/1/2017) | Actuarially determined |
| Benefit Calculation | Formula based in part on average of 5 highest years’ earnings & years of service. See Summary Plan Description | Formula based in part on average of 5 highest years’ earnings & years of service. See Summary Plan Description | Based solely on contributions and investment performance of account | Formula based in part on average of 3 highest years’ earnings & years of service |
| Investment Method | Professionally managed | Professionally managed | Employee directed | Professionally managed |
| Investment Risk | Defined benefit: Employer Defined contribution: Employee | Defined benefit: Employer Defined contribution: Employee | Employee | Employer |
| Earliest Benefit Eligibility | Age 58 + 10 years | Age 58 + 10 years | Age 55 + 10 years of participation Under 55 + less than 10 years: rollover only | Age 55: 20 years (15 in CT) Any age: 25 years (20 in CT) |
| Normal Retirement Age | Age 63 + 25 years Age 65 + 10 years | Age 63 + 25 years Age 65 + 10 years | Age 65 | Age 60 + 20 years of CT service Any Age + 35 years of service (25 in CT) |
| Disability Retirement | Yes, at any time for service-related disability Need 10 years vesting service for non-service-related disability | Yes, at any time for service-related disability Need 10 years vesting service for non-service-related disability | No, employer-provided disability insurance policies may continue 13% contributions to plan during disability (depending on employing agency) | Yes, disability allowance available |
| Minimum Vesting | 10 years vesting service | 10 years vesting service | Immediate vesting | 10 years of CT service |
| Benefit Form | Lifetime monthly benefit payment | Lifetime monthly benefit payment OR one-time lump sum “cash out” option | Flexible (lump sum, periodic, or monthly payment) | Lifetime monthly benefit payment |
| Cost of Living Adjustments | Yes | Yes, if retiree elects lifetime monthly benefit payment | Not Applicable | Yes |
| Can an employee make additional contributions? | No | No | No | Yes, into Voluntary Account (via payroll after-tax contributions only) |
| Purchase of Service Credit | Allowed (restrictions apply) See Summary Plan Description | Allowed (restrictions apply) See Summary Plan Description | Not Allowed | Allowed (restrictions apply) |
| Pre-Retirement Death Benefit | Spousal benefit if employee met age and service required for immediate retirement or completed 25 years service (at any age); otherwise contributions are refunded | Spousal benefit if employee met age and service required for immediate retirement or completed 25 years service (at any age); otherwise contributions are refunded | Account balance payable to spouse or named beneficiary, as applicable Retiree health benefits – must meet eligibility requirements | Yes, spousal benefit payable if employee met age and service requirements for retirement; otherwise, survivorship benefits will be paid |
| Rollovers from Other Retirement Plans | Defined benefit: Not Allowed Defined contribution: accepts rollovers of pre-tax dollars from other eligible retirement plans and IRAs | Defined benefit: Not Allowed Defined contribution: accepts rollovers of pre-tax dollars from other eligible retirement plans and IRAs | Accepts rollovers of pre-tax dollars from other eligible retirement plans and IRAs | Allowed, only within 2 months prior to retirement effective date for the purposes of annuitization (pre-tax only) |
| 2023 Limit on Wages Used to Calculate Contributions | $330,000 | $330,000 | Hired after January 1, 1996: 401(a)(17) compensation limit: $330,000 Hired prior to January 1, 1996: 415(c) contribution limit: $66,000 | $330,000 |
| Employee Social Security & Medicare Participation | Both | Both | Both | Medicare Only |
| For More Information | SERS Tier IV | SERS Tier IV | CTDCP.com | Teachers Retirement Board ct.gov/trb |
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