Connecticut General Statutes/Title 7/Chapter 113/Section 7-436

CGS § 7-436. Retirement benefits, monthly allowances.

(a) Members not covered by Social Security. After retirement, in accordance with the provisions of this part and except as provided in subsection (g) of this section, each member of the municipal employees' retirement system who is not covered by the Old Age and Survivors Insurance System shall receive, during such member's lifetime, a retirement allowance payable in monthly installments at an annual rate equal to one-twelfth of two per cent of the member's average annual pay for the three highest-paid years of service, multiplied by the number of months of such member's aggregate service.

(b) Members covered by Social Security who are not yet eligible to receive Social Security benefits. After retirement, in accordance with the provisions of this part and except as provided in subsection (h) of this section, each member of the municipal employees' retirement system who (1) is covered by the Old Age and Survivors Insurance System, (2) retires before attaining the age at which such member first becomes eligible to receive Social Security benefits, and (3) who has not qualified for a Social Security disability award, shall receive, until such member attains such age or qualifies for a Social Security disability award, if earlier, a retirement allowance payable in monthly installments at an annual rate equal to one-twelfth of two per cent of the member's average annual pay for the three highest-paid years of service, multiplied by the number of months of such member's aggregate service.

(c) Members eligible to receive Social Security benefits. On and after January 1, 2002, except as provided in subsection (h) of this section, the following formula shall be used for the purpose of calculating the monthly allowance of each member covered by the Old Age and Survivors Insurance System on the first of the month after such member attains the age at which such member first becomes eligible to receive Social Security benefits or qualifies for a Social Security disability award, if earlier: One-twelfth of one and one-half per cent of such member's average annual pay for the three highest-paid years of service up to the breakpoint for the year in which such member separated from service, plus one-twelfth of two per cent of such member's final average annual pay in excess of the breakpoint for the year in which such member separated from service, multiplied by such member's years of retirement credit and fractions thereof. Such allowance shall be reduced in recognition of any optional form of retirement income elected in accordance with section 7-439g. For the purposes of this section, “breakpoint” has the same meaning as “year's breakpoint” as provided in section 5-192f.

(d) Disability retirees. Notwithstanding the provisions of subsections (a) to (c), inclusive, of this section, the retirement allowance for permanent and total disability arising out of and in the course of such member's employment, as defined in the Workers' Compensation Act, shall not be less than one-twelfth of one-half of the member's annual pay at the time such member's disability was incurred. Any amount or amounts received under the Workers' Compensation Act shall be deducted from such allowance, except that any member who has received a specific indemnity award under section 31-307 or 31-308 shall not have the amount of such indemnity award deducted from such member's allowance. The retirement allowance provided under this subsection shall be reduced by the amount of any retirement allowance concurrently payable under the provisions of section 7-431, and by the amount of any retirement allowance concurrently payable by the state employees' retirement system or the retirement system of any municipality not participating under the provisions of this part, on account of a period of service for which credit has been transferred to the Municipal Employees' Retirement Fund under the provisions of section 7-442b, or the monthly equivalent thereof if payable other than monthly. No retirement allowances under this section, before the reduction prescribed in the preceding sentence plus workers' compensation payments and benefits under the Old Age and Survivors Insurance System on account of service in a participating municipality, if any, shall exceed one-twelfth of the member's average annual pay during the three highest-paid years of municipal service, and, subject to the foregoing maximum limit, no such allowance plus payments shall be less than one thousand dollars annually.

(e) Additional cost of living allowances for certain retirees. Each employee or spouse of a deceased employee retired under the Municipal Employees' Retirement Act Fund B prior to July 1, 1971, shall be entitled, in addition to his or her original monthly retirement allowance, to an additional cost of living monthly allowance computed on the basis of his or her monthly retirement allowance, less any prior cost of living increases to which he or she was previously entitled, using the table in subdivision (1) of this subsection.

(1) Such cost of living allowances shall commence on July 1, 1973, and shall be computed at the rates set forth in the following table:

Fiscal YearOf Retirement YearEnding June 30th

Rates %Of Increase

1949

40.0

1950

42.7

1951

41.2

1952

33.9

1953

30.9

1954

30.4

1955

30.0

1956

30.4

1957

28.3

1958

24.8

1959

21.9

1960

21.1

1961

19.5

1962

18.1

1963

16.8

1964

15.1

1965

14.6

1966

14.1

1967

12.9

1968

6.0

1969

4.0

1970

4.0

1971

4.0

(2) The limitation of the maximum retirement allowance provided in subsection (a) of this section shall not be applicable to increases under this subsection.

(f) Part-time employees. For purposes of determining eligibility for retirement benefits for part-time employees under this section, a member's part-time service shall be payable to a member whose service consists solely of part-time service without variation in the number of hours worked during all periods of his municipal service, such member's service shall be treated as full-time service. For purposes of computing the retirement benefit payable to a member whose service consists of part-time and full-time service or whose service consists of part-time service rendered in different proportions to a full-time schedule, such member's years of service and average salary shall be proportionately adjusted to produce a retirement benefit equivalent to that payable if his service had been rendered at an unvarying rate. As used in this subsection, “part-time service” means service by a member who customarily works less than a full-time schedule but no less than twenty hours per week.

(g) Certain members not covered by Social Security who satisfy additional age and service requirements. (1) The provisions of this subsection shall apply only to members of the municipal employees' retirement system who (A) are not covered by the Old Age and Survivors Insurance System, and (B) retire on or after July 1, 2025, after (i) attaining the age of sixty years and completing at least thirty years of aggregate service, or (ii) attaining the age of fifty-five years and completing at least twenty-seven years of active service as a member of a paid municipal fire department or as a regular member of a paid municipal police department.

(2) The monthly allowance for each such member shall be equal to the sum of subparagraphs (A) and (B) of this subdivision as follows: (A) One-twelfth of two per cent of such member's average annual pay for the three highest-paid years of service, multiplied by three hundred sixty or, for a member of a municipal fire or police department, by three hundred twenty-four; and (B) one-twelfth of two and two-tenths per cent of such member's average annual pay for the three highest-paid years of service, multiplied by the number of months of the member's aggregate service in excess of three hundred sixty or, for a member of a municipal fire or police department, in excess of three hundred twenty-four.

(h) Certain members covered by Social Security who satisfy additional age and service requirements. (1) The provisions of this subsection shall apply only to members of the municipal employees' retirement system who (A) are covered by the Old Age and Survivors Insurance System, and (B) retire on or after July 1, 2025, after (i) attaining the age of sixty years and completing at least thirty years of aggregate service, or (ii) attaining the age of fifty-five years and completing at least twenty-seven years of active service as a member of a paid municipal fire department or as a regular member of a paid municipal police department.

(2) For a member who retires before attaining the age at which such member first becomes eligible to receive Social Security benefits and who has not qualified for a Social Security disability award, the monthly allowance for each such member until such member attains such age or qualifies for a Social Security disability award, if earlier, shall be equal to the sum of subparagraphs (A) and (B) of this subdivision as follows: (A) One-twelfth of two per cent of such member's average annual pay for the three highest-paid years of service, multiplied by three hundred sixty or, for a member of a municipal fire or police department, by three hundred twenty-four; and (B) one-twelfth of two and two-tenths per cent of such member's average annual pay for the three highest-paid years of service, multiplied by the number of months of the member's aggregate service in excess of three hundred sixty or, for a member of a municipal fire or police department, in excess of three hundred twenty-four.

(3) For a member who attains the age at which such member first becomes eligible to receive Social Security benefits or qualifies for a Social Security disability award, if earlier, the monthly allowance for each such member shall be equal to the sum of subparagraphs (A) and (B) of this subdivision as follows: (A) One-twelfth of one and one-half per cent of such member's average annual pay for the three highest-paid years of service up to the breakpoint for the year in which such member separated from service, plus one-twelfth of two per cent of such member's average annual pay for the three highest-paid years of service in excess of the breakpoint for the year in which such member separated from service, multiplied by three hundred sixty or, for a member of a municipal fire or police department, by three hundred twenty-four; and (B) one-twelfth of one and seven-tenths per cent of such member's average annual pay for the three highest-paid years of service up to the breakpoint for the year in which such member separated from service, plus one-twelfth of two and two-tenths per cent of such member's average annual pay for the three highest-paid years of service in excess of the breakpoint for the year in which such member separated from service, multiplied by the number of months of the member's aggregate service in excess of three hundred sixty or, for a member of a municipal fire or police department, in excess of three hundred twenty-four.

Short History

(1957, P.A. 447, S. 7; 1959, P.A. 316; 471, S. 2; 1967, P.A. 547, S. 1; 722, S. 1; 1969, P.A. 406; 1971, P.A. 644, S. 2; P.A. 73-619, S. 1, 3; P.A. 75-293, S. 5; P.A. 76-314; P.A. 77-102, S. 1, 2; P.A. 79-376, S. 14; P.A. 84-106, S. 3; P.A. 86-243, S. 1, 10; P.A. 93-356, S. 6; P.A. 01-80, S. 3; P.A. 07-217, S. 27; P.A. 23-182, S. 2; P.A. 24-151, S. 104.)

Long History

History: 1959 acts provided for computation of retirement benefits on basis of five highest-paid years of municipal service rather than five years immediately preceding retirement and included benefits under old age and survivors insurance system in restriction on maximum allowance payable; 1967 acts based calculations on three highest-paid years rather than five highest-paid years and added provision concerning benefits for fund B members retired before January 1, 1960; 1969 act deleted provisions concerning temporary retirement allowances; 1971 act simplified description of formula; P.A. 73-619 added Subsecs. (b) and (c) re cost-of-living increases and benefits for retirees whose municipalities later join fund B; P.A. 75-293 replaced “three highest-paid years of service” in Subdiv. (1) with “last ten years of service”; P.A. 76-314 amended Subsec. (c) to include members of fund B as well as retirees whose municipality transfers to fund B and added reference to Sec. 7-436a; P.A. 77-102 amended Subsec. (a) replacing “is not so derived” with “exceeds the average obtained in Subdivision (1)”; P.A. 79-376 substituted “workers' compensation” for “workmen's compensation”; P.A. 84-106 amended Subsec. (a) to provide that any workers' compensation specific indemnity award shall not be deducted from the member's retirement allowance; P.A. 86-243 amended Subsec. (a) to equalize the percentage of pay used to calculate benefits for all service years and to provide that a member's retirement allowance, plus workers' compensation and Social Security benefits, may not exceed 100%, instead of 75%, of his average annual pay and added Subsec. (d), establishing how part-time service shall be treated for benefit eligibility and calculation purposes; P.A. 93-356 amended Subsec. (c) to exclude retirees whose municipality transfers to fund B; P.A. 01-80 added new Subsec. (e) re formula for calculating the monthly allowance of each member covered by the Old Age and Survivors Insurance System; P.A. 07-217 made technical changes in Subsecs. (a) and (b), effective July 12, 2007; P.A. 23-182 amended Subsec. (a) to replace provisions re monthly retirement allowance with provisions re monthly retirement allowance for members not covered by Old Age and Survivors Insurance System and redesignate provisions re disability retirees as Subsec. (d) and make technical and conforming changes therein, added new Subsec. (b) re members covered by Old Age and Survivors Insurance System who retire before being eligible to receive Social Security benefits, added new Subsec. (c) re members covered by Old Age and Survivors Insurance System who are eligible to receive Social Security benefits, redesignated former Subsecs. (b) and (d) as Subsecs. (e) and (f), deleted former Subsec. (c) re allowance increase and former Subsec. (e) re monthly allowance for members covered by Old Age and Survivors Insurance System who are eligible to receive Social Security benefits, and added Subsecs. (g) and (h) re monthly allowances for members who satisfy additional age and service requirements, effective June 27, 2023; P.A. 24-151 made a technical change in Subsec. (c).

Citations

Does not apply to pensions derived from other than Municipal Employees' Retirement Act benefits. 175 C. 174. Cited. 178 C. 23.

Subsec. (a):

Where retirement was based on age and length of employment, benefits should not have been reduced by amount of workers' compensation award received for an injury. 178 C. 23.

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