Connecticut General Statutes 10-183ww – Credited interest percentage and return assumption. Revised actuarial valuation and certification to General Assembly
(a) Not later than fourteen business days after the last action necessary to make effective a state budget act for the biennium ending June 30, 2021, subject to the approval of the Teachers’ Retirement Board, the credited interest percentage for member accounts, except voluntary accounts containing only those contributions made pursuant to section 10-183i shall be not more than four per cent per annum and the return assumption shall be six and nine-tenths per cent per annum. Notwithstanding the provisions of sections 10-183vv, 12-801, 12-806 and 12-812, if the board fails to revise such percentage and adopt such return assumption: (1) No moneys shall be deposited in the Connecticut Teachers’ Retirement Fund Bonds Special Capital Reserve Fund, established in section 10-183vv; (2) the Treasurer’s duties and obligations under section 10-183vv shall terminate; and (3) the pledges made in section 10-183vv shall not be in effect.
Terms Used In Connecticut General Statutes 10-183ww
- Actuarial reserve basis: means a basis under which the liabilities of the retirement system are determined under acceptable actuarial methods and under which assets are accumulated under a program designed to achieve a proper balance between the accumulated assets and the liabilities of the system. See Connecticut General Statutes 10-183b
- Amortization: Paying off a loan by regular installments.
- Board: means the Teachers' Retirement Board. See Connecticut General Statutes 10-183b
- Contributions: means amounts withheld pursuant to this chapter and paid to the board by an employer from compensation payable to a member. See Connecticut General Statutes 10-183b
- Credited interest: means interest at the rate from time to time fixed by the board consistent with industry standards and practices. See Connecticut General Statutes 10-183b
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Member: means any Connecticut teacher employed (A) on, and compensated for, the first school day, in accordance with the member's contractual schedule, and (B) for an average of at least one-half of each school day after the first school day, except that no teacher who under any provision of the general statutes elects not to participate in the system shall be a member unless and until the teacher elects to participate in the system. See Connecticut General Statutes 10-183b
- System: means the Connecticut teachers' retirement system. See Connecticut General Statutes 10-183b
(b) If the board revises such percentage and adopts such return assumption in accordance with subsection (a) of this section, the board shall, on or before July 1, 2019, and notwithstanding the provisions of subsection (a) of section 10-183z: (1) Request a revised actuarial valuation for the fiscal years ending June 30, 2020, and June 30, 2021, based on changes to the benefit program, amortization period and the systematic program of annual payments applied to determine the amortization of unfunded liabilities of the Connecticut teachers’ retirement system as provided in subdivision (2) of section 10-183b and section 10-183z; and (2) certify to the General Assembly for such fiscal years the amount necessary, based on such revised actuarial valuation, to maintain the Teachers’ Retirement Fund on an actuarial reserve basis.