Connecticut

Overview

Major public retirement systems in Connecticut include the Connecticut State Employees Retirement System (SERS), the Connecticut Teachers Retirement Board (TRB), and the Connecticut Municipal Employees’ Retirement System (MERS).

CT SERS administers pension and other benefits to state employees. Assets are managed by the state treasurer, who serves as sole trustee. The system is administered by the Retirement Division of the state comptroller.

CT TRB administers pension and other benefits to public school teachers in the state. Assets are managed by the state comptroller, who serves as the sole trustee.

Plan Design

Connecticut teachers, and state & local employees hired before July 1, 2017 participate in a defined benefit plan. State employees hired since July 1, 2017 participate in a combination (DB+DC) hybrid plan. 

According to the US Government Accountability Office, 55 percent of employees of state and local government in Connecticut participate in Social Security.

Access plan design detail

Authorizing Statutes and Board Structure

The state treasurer serves as the sole trustee of the Connecticut State Employees’ Retirement System. An Investment Advisory Council is responsible for reviewing and proposing revisions to the treasurer's investment policy statement, and for reviewing investments made by the treasurer. The council is made up of The Secretary of the Office of Policy and Management and the State Treasurer, who serve as ex-officio members and five appointed public members experienced in matters relating to investments.
See more: Constitutional and Statutory Functions of the State Treasurer

CT Gen Stat § 10-183c. establishes the Teachers’ Retirement System. CT Gen Stat § 10-183l. establishes the Teachers’ Retirement Board, which includes 14 members. 

Fiduciary Duty/Prudence Standard

CT Gen Stat § 45a-203 directs the Treasurer to invest "with the care of a prudent investor". 

CT Gen Stat § 3-13d. specifies the following investment restriction:
Notwithstanding the provisions of this section or any other provision in the general statutes, the Treasurer shall not invest more than sixty per cent of the market value of each such trust fund in common stock, except in the event of a stock market fluctuation that causes the common stock percentage to increase and the Treasurer deems it in the best interest of such trust fund to maintain a higher percentage of equities, provided the Treasurer shall not allow the market value of each such trust fund in common stock to exceed sixty-five per cent for more than six months after such fluctuation occurs.

Legal Protections of Retirement Benefits

No explicit constitutional protection for public pension benefits. Statutory protection exists for vested employees who satisfy eligibility requirements by becoming eligible to receive benefits. Courts also recognized the state's statutory pension scheme establishes a property interest entitled to protection from arbitrary legislative action under the due process provisions of the state constitution. See Pineman v. Oechslin, 488 A.2d 803 (1985). Municipal pensions are protected by CT Stat. §7-148 providing that the "rights or benefits granted to any individual under any municipal retirement or pension system shall not be diminished or eliminated." Source: Robert Klausner, Esq., State Constitutional Protections for Public Sector Retirement Benefits

See also the following search tools:

Retirement System Account Interest Policies Economic Actuarial Assumptions Retirement and Investment Board Characteristics
Information about interest rates applied to account balances of inactive plan participants Assumed rates of investment return and inflation Composition and characteristics of public retirement and investment oversight boards
Mortality Assumptions Plan Design Features Post-retirement Employment Policies
Public retirement system actuarial assumptions for mortality Numerous elements of retirement plan design Policies governing return-to-work for retirement system annuitants

More Data

Flag of Connecticut (September 9, 1897)

Population (2023) 3,617,176

Connecticut public pension statistics, per U.S. Census Bureau as of FY 2023 ($ in 000s)

Assets

$60,176,783

Active Members

135,090

Annuitants

142,090

Benefits Paid

$6,407,821

Employee Contributions

$787,297

Employer Contributions

$45,704,589

Systems

206

More Data

Other Resources


Become A Member

Becoming a member of NASRA offers a unique opportunity to join a community committed to the sound, efficient, and innovative stewardship of public retirement systems. Membership connects you with a network of professionals and experts, providing valuable insights into managing public retirement systems with a focus on sustainability and risk-averse strategies.

By joining NASRA, you gain the tools and resources to enhance the management of public retirement systems, ensuring their long-term success and reliability for generations to come.


 

What's New at NASRA: Latest Update on Employee Contributions to Public Pensions

NASRA updates six key briefs annually on public pension management. The latest focuses on employee contributions to public pensions. Unlike private sector pensions, state and local government employees contribute to their retirement benefits, a crucial practice for stable pension funding. Post-2008 financial downturn, many plans increased these contributions. This brief examines the contribution plans’ design, policies, and trends, underlining their importance in pension sustainability.