PLANNING GUIDE -Connecticut's Official State …



PLANNING GUIDE FOR

DEPARTMENT OF MOTOR VEHICLES EMPLOYEES

RETIRING FROM STATE SERVICE

Department of Motor Vehicles

Bureau of Administration

Human Resources, Labor Relations and Payroll Division

January, 2009

TABLE OF CONTENTS

INTRODUCTION ................................................................................. 3

BRIEF OVERVIEW OF TIER I RETIREMENT……………… ……. 5

BRIEF OVERVIEW OF TIER II AND TIER IIA RETIREMENT…... 7

BRIEF OVERVIEW OF HAZARDOUS DUTY RETIREMENT……. 8

CONNECTICUT STATE EMPLOYEES RETIREMENT

Survivor Benefits………………………………………………. 9

Benefit Payment Options………………………………………. 9

Examples of Options…………………………………………… 10

Vested Benefits………………………………………………… 12

Health Insurance……………………………………………….. 13

Dental Insurance……………………………………………….. 13

Health Insurance for Optionees………………………………... 14

Vacation/Sick Time Accruals and Personal Leave Days……… 14

Retirement Date………………………………………………... 14

Cost of Living Allowances (COLA’S) ………………………… 15

Group Life Insurance…………………………………………... 16

Deferred Compensation………………………………………... 16

Credit Union……………………………………………………. 16

Direct Deposit………………………………………………….. 16

Pension Deductions…………………………………………….. 16

PROCEDURES FOR RETIRING

Notice of Retirement Date……………………………………... 17

Required Documents…………………………………………… 17

FREQUENTLY ASKED QUESTIONS……………………………… 19

APPENDIX A -- Summary for Non-Disability Pension Benefits, Retiree

Health Insurance and Cost of Living Allowances (COLA)

PLANNING GUIDE FOR

DEPARTMENT OF MOTOR VEHICLES EMPLOYEES

RETIRING FROM STATE SERVICE

INTRODUCTION

Making the decision to retire can be overwhelming. Being well informed should help to alleviate any anxiety you may be feeling. Try to gather as much information as possible as you consider whether or not to retire. If you have any questions or need information about planning for your retirement, the following resources may be of assistance to you when deciding your retirement options:

➢ Refer to the applicable State Employees Retirement System (SERS) summary plan descriptions for Tier I, Tier II and Tier IIA prepared by the Office of the State Comptroller (OSC) and available on the OSC website at osc.state.ct.us/empret/.

➢ Refer to “Your Personal Statement of Benefits” which is distributed to employees annually. This benefits statement provides dollar amounts of your benefit based on a normal retirement and specific to the retirement plan you are in.

➢ Check the Retirement Division's web-site at osc.state.ct.us/empret/ for valuable information on medical, dental and supplemental benefits, as well as additional links for information on the State’s deferred compensation plan and to the Social Security Administration.

➢ The Retirement & Benefits Services Division of the OSC provides retirement counseling. Effective January 1, 2009, the Retirement & Benefit Services Division no longer provides individual pre-retirement counseling sessions for SERS Tier I, Tier II and Tier IIA members. The Division provides SERS members with the opportunity to attend scheduled group counseling sessions. The information provided at these group sessions pertains to the retirement process including the benefit calculation. Therefore, any requests to attend a group session should come only from SERS members who are within six to eighteen months of the date of their retirement. Attendance at a pre-retirement counseling session is not mandatory: a member does not have to attend a session in order to be able to retire from state service. Attendance at these group sessions is by appointment only. Contact the Counseling Unit at 860-702-3490 for scheduling details.

➢ Your financial or tax advisor can provide assistance in determining the most suitable benefit payment option and tax withholding information specific to your personal and financial situation.

➢ The DMV Human Resources, 203.805.6268, and Payroll, 203.805.6308, Offices can assist you with the procedures, forms and necessary documents for retirement. Worksheets for calculating your own Tier I, Tier II or Hazardous Duty benefit are available on the DMV Intranet Site at insidedmv/ by clicking on “Forms”. You only need to fill in a few areas in the form, and your benefit estimate will be calculated automatically. Human Resources and Payroll can assist you with any questions you may have on the worksheet.

➢ Your insurance providers can address specific questions you may have about your benefits upon retirement:

Anthem Blue Cross and Blue Shield 1-800-922-2232

statect

Health Net 1-800-255-5019

stateofct

UnitedHealthcare (Medical) 1-800-385-9055

stateofct

Caremark 1-800-318-2572

(prescription drug benefits, any medical plan)

members/stateofct

UnitedHealthcare (Dental) 1-800-896-4834

statect

CIGNA (Dental) 1-800-244-6224



**********

This booklet is intended to be a guide to the most commonly asked questions regarding retirement issues. It is neither a legal document nor a comprehensive explanation of all retirement matters. If any conflict is found between the contents of this guide and the retirement statutes or regulations, the latter are the authoritative references.

BRIEF OVERVIEW OF TIER I RETIREMENT

The complete Summary Plan Description for Tier I is available on the OSC website at osc.state.ct.us/empret/tier1summ/. Tier I primarily applies to employees hired into State service before July 2, 1984. Tier I members are eligible for a retirement pension when they reach:

Age 55 with at least 25 years of service, (normal retirement) or

Age 65 with at least 10 years of service, (normal retirement) or

Age 70 with at least 5 years of service, (age 70 retirement) or

Age 55 with at least 10 years of service, (early retirement).

The Tier I pension formula is based on a benefit percentage for each year of service, the number of years of service, and the average of the employee's three (3) highest year’s earnings.

There are three (3) different plans within the Tier I Retirement Program. They are Plan A, Plan B and Plan C. These plans are commonly referred to as defined benefit plans.

Plan A members contribute 5% of their salary and do not pay Social Security contributions. Members therefore, are not eligible to receive Social Security Benefits based on their service with the State.

Plan B members contribute 2% of their salary up to the Social Security wage maximum and 5% above the Social Security wage maximum.

Plan C members contribute 5% of their salary and pay Social Security contributions.

For Plans A, B and C the following formula is used in determining the retirement benefit at age 55 and with 25 years of service:

Two percent (.02) x Years of Service x Average Salary.

Example #1:

A retiree age 55 with 25 years of full-time service and an average salary of $50,000, using the formula for Plans A, B, and C, would receive the following retirement benefit:

.02 x 25 x $50,000 = $25,000 Annual or $2,083 Per Month.

For Plan B members, the following reduction formula is used at the age upon which full retirement age is reached under the Social Security Act, or upon receipt of a Social Security Disability Award, if earlier (assume an average salary of $50,000 with 25 years of service):

One percent (.01) x Years of Service x $4,800 Plus

Two percent (.02) x Years of Service x Average Salary over $4,800.

Example #2:

Salary $50,000

Less $ 4,800 X .01 x 25 = $ 1,200

$45,200 X .02 x 25 = 22,600

$23,800 Annual ( 12 = $1,983 Per Month

The Plan B reduction for a surviving spouse receiving a benefit under Tier I will take place at age 62, or upon receipt of a Social Security Disability Award, if earlier.

BRIEF OVERVIEW OF TIER II AND TIER IIA RETIREMENT

The complete Summary Plan Description for Tier II and IIA is available on the OSC website at osc.state.ct.us/empret/. Tier II applies to employees hired from July 2, 1984 through June 30, 1997 with no break in State service. Tier IIA applies to employees hired since July 1, 1997. (For information about plan eligibility after a break in service, please see page 21.)

The primary difference between Tier II and IIA is that II A is contributory, that is, you contribute 2% of your salary to the retirement plan.

Tier II and IIA members are eligible for a retirement pension when they reach:

Age 60 with at least 25 years of vesting service, (normal retirement) or

Age 62 with at least 10 years of vesting service, (normal retirement) or

Age 62 with at least 5 years actual State service (normal retirement) or

Age 70 with at least 5 years of vesting service, (age 70 retirement) or

Age 55 with at least 10 years of vesting service, (early retirement).

The Tier II and IIA formula is as follows:

One and one-third percent (.0133) x Average Salary Plus

One-half of one percent (.005) x Average Salary in excess of the year’s breakpoint

x years of credited service (to 35 year maximum) And

One and five-eighths Percent x Average Salary

x years of credited service over 35 years

Example #3:

A person age 62 with 10 years of full-time credited service with an average salary of $50,000 would receive the following retirement benefit:

.0133 x $50,000 = $665

Plus

.005 x $ 1,200 * = 6

$671

x 10 yrs. of credited service (to a maximum of 35)

$6,710 Annual ( 12 = $559 Per Month

*This amount represents the figure arrived at after deducting the 2008 breakpoint, $48,800 from the Average Salary of $50,000.

For Early Retirement, your basic normal benefit amount is reduced by one quarter of one per cent (.0025) for each month you retire prior to attaining age 60 if you have at least 25 years vesting service, or age 62 if you have at least 10 years vesting service. These reductions are required because your benefits are expected to be paid over a longer period time.

BRIEF OVERVIEW OF HAZARDOUS DUTY RETIREMENT

UNDER TIER I (PLANS A, B and C), TIER II AND TIER IIA

Motor Vehicle Inspectors, Sergeants and Lieutenants who are POST certified may retire at any age with 20 years of hazard duty service (HDS). Tier 1 hazardous duty members contribute 4% of their salary up to the Social Security wage maximum and 5% above the Social Security wage maximum; Tier II, 4%; Tier IIA, 5%. Additional information concerning hazardous duty is available on the OSC website at osc.state.ct.us/rbsd/hazduty/. The formula for calculating the retirement benefit is the same for all Tier I, Tier II and Tier IIA retirement plans as follows:

Fifty percent (.50) for 20 years HDS x Average Salary Plus

Two percent (.02) x all service over 20 (including HDS and other credited service)

x Average Salary

Example #4

A hazardous duty member who retires with an average salary of $50,000 and 25 years of service would receive 50% of his/her average salary for 20 years, or $25,000, plus 10% for the additional five years, or $5,000, as follows:

.50 x $50,000 = $25,000

.02 x 5 yrs. x $50,000 = 5,000

$30,000 Annual ÷ 12 = $2,500 Per Month

Tier 1, Plan A and C, Tier II and Tier IIA members would receive the above basic benefit for life.

Tier 1, Plan B members would receive the above benefit until the age upon which full retirement age is reached under the Social Security Act, or upon receipt of a Social Security Disability Award, if earlier. Following is the reduction formula:

One and one-quarter percent (.0125) x HD prior to 7/1/88 (maximum 20 years) Plus

One percent (.01) x all additional service (over 20 years) prior to 7/1/88 (incl. HD and other credited service) x $4,800

Example #5

The hazardous duty member in Example #4 has 25 years of service. Five (5) of those years were prior to 7/1/88, including a combination of 3 years of hazardous duty and 2 years of other credited service. Using the reduction formula, this member’s monthly benefit would be reduced by $23 per month upon reaching the full Social Security retirement age:

.0125 x 3 yrs. = .0375

.01 x 2 yrs. = .0200

.0575 x $4,800 = $276 Annual ÷ 12 = $23 Per Month

CONNECTICUT STATE EMPLOYEES RETIREMENT

The information on the following pages applies to all three (3) Retirement Plans, unless specified otherwise.

After you retire and begin receiving your pension, should you have a question regarding your retirement check please contact the Office of the State Comptroller, Retirement Division, 55 Elm Street, Hartford, CT 06106 at the telephone number(s) below:

|Retirement Payroll Unit |860-702-3528 |

|Email: osc.retireepayrollunit@po.state.ct.us |

|Retiree Health Insurance Unit |860-702-3533 |

Survivor Benefits

Your spouse may receive monthly benefits if you die before retirement and while actively employed or while on an approved leave of absence, provided:

• You are eligible for normal, age 70 or early retirement

• You have 25 years of service at any age

The eligible amount is similar to the 50% Spousal Option. (Please see Benefit Payment Options Section below and on the next page.)

Benefit Payment Options

You may choose to receive your retirement income in the form best suited to your personal needs. If you elect to have your retirement benefits paid to someone else when you die, the recipient would be your "optionee". Your benefit payment option cannot be changed after retirement for any reason. If you have been married for at least one year prior to the commencement of your retirement benefits, written spousal consent will be required if you do not provide a lifetime guarantee (50% or 100% option) for that spouse - accordingly if you are married you cannot elect certain options unless your spouse executes the waiver of survivor benefits (Form CO-1047). Regardless of your option choice or marital status, you must submit proof and/or attest to your marital status within one year prior to the date your retirement benefits are to commence. The optional forms of payment available are:

Option 1 (D) - Straight Life Annuity

This option provides you with the highest monthly benefit for your lifetime. However, all payments stop at your death.

Please read carefully. If you elect Option D, at the time of your death not only do all pension payments stop, but health insurance for any dependents – including your spouse – you were covering through the State Employees Retirement System also ends. Those dependents would be offered the choice of assuming the full (100%) cost of the group health insurance for a limited period only (currently 3 years). Then all health insurance benefits available through the state would cease. Reimbursement for your dependent's Medicare Part B (normal premiums) will also end at your death.

Option 2 (A) - 50% or 100% Spousal Option

This option provides a reduced monthly benefit to you for life, but provides for continued payments to your current spouse. After your death, a percentage of that benefit, either 50% or 100%, whichever you choose, will continue for the lifetime of your current spouse. If you have been married for at least one year prior to the commencement of your retirement benefits, written spousal consent (a waiver) will be required if you do not provide a lifetime guarantee for that spouse. If you retire and have not designated in writing the benefit payment option you would prefer or have not obtained the consent of your spouse, your benefit will be paid according to your marital status when you apply for retirement benefits. Benefit options are elected when retirement forms are signed unless a spousal option had been applied for and put into effect prior to October 1, 1982.

If your current spouse dies, you will continue to receive the reduced retirement allowance. If you divorce your current spouse, s/he will still receive the benefit payable after your death. In the event of remarriage after the death or divorce of your current spouse, Option 2(A) is not transferable to your new spouse and you would continue to receive the reduced retirement allowance.

Option 3 (B) - Contingent Annuitant

This option provides for continued payments after your death to the contingent annuitant you choose who can be someone other than your spouse. The option provides a reduced monthly benefit to you for life. After your death, a percentage of that benefit, either 50% or 100%, whichever you choose, will continue for the lifetime of your annuitant. If you select this option, the state sponsored health coverage and the payment of any reimbursement of the Medicare Part B normal premiums would be extended at the time of your death to your annuitant (if your annuitant is your spouse or eligible dependent) for as long as the monthly benefit continues. After retirement, if your annuitant dies before you, you will continue to receive your reduced retirement allowance for the remainder of your lifetime with no income payments continuing after your death. After retirement, you cannot name another contingent annuitant to receive the benefits or change the percentage of reduced income.

Option 4 (C) – 10 Year or 20 Year Period Certain.

This option provides a reduced monthly benefit to you for your lifetime with payments guaranteed from your retirement date for 10 or 20 years (whichever you choose) to your contingent annuitant. If you should die within 10 years (120 payments) or 20 years (240 payments) from your date of retirement, the remaining payments will be made to your contingent annuitant(s). Because this is a period certain option, if your annuitant dies before you, you may choose a new designated annuitant (after you provide the Division with a certified copy of the death certificate). If you die before your annuitant and your annuitant dies before the expiration of the selected period, the commuted value of the remaining guaranteed payments shall be paid in one lump sum to the annuitant’s estate.

Options using retirement benefit from Example #1 on page 3:

|Option Plan |Ages |Annual |Reduced |Retiree |Spouse |

| | |Benefit |% |Receives $ |Receives $ |

|1 (D) |Straight Life |Retiree 55 |$25,000 |0 |$25,000 |0 |

| | | | | |Annual | |

|2 (A) |50% Husband & Wife |Retiree 55 Spouse 52|$25,000 |.9019 |$22,548 |$11,274 |

| | | | | |Annual |Annual |

|3 (B) |Contingent Annuitant - |Retiree 55 |$25,000 |.8214 |$20,535 |$20,535 |

| |100% (50% same as 2(A) |Spouse 52 | | |Annual |Annual |

| |above) | | | | | |

|4 (C) |10 Year |Retiree 55 * |$25,000 |.9800 |$24,500 |$24,500 |

| | | | | |Annual |Annual |

| | | | | | | |

| |20 year |Retiree 55 * | |.9193 |$22,983 |$22,983 Annual |

| | | | | |Annual | |

* The optionee's age is not relevant for this option.

Important items to note:

The benefit option payment you choose cannot be changed after retirement. Therefore, it is very important that you elect your “option” following careful review of your personal and financial situation as against all of the available choices.

A benefit option that continues an income to a surviving optionee reduces a retiree’s annual benefit.

If you have been married for at least one year prior to the commencement of your retirement benefits, written spousal consent will be required if you do not provide a lifetime guarantee (50% or 100% option) for that spouse. Failure to submit the required waiver and documentation prior to your effective date of retirement may result in a delay of retirement income payments.

If you retire and have not designated in writing the benefit payment option you prefer, your benefit will be paid according to your marital status when payment begins.

Vested Benefits

Tier 1 members are eligible for health insurance and COLA with 10 years of actual state service. You can earn a vested right to a retirement benefit, if you have at least 10 years of service at the time you leave State Service and have been continuously employed by the State for the last 5 years without a severance of 1 year or more.

Tier II members are eligible for health insurance and COLA with 10 years of vesting service. Tier IIA members are eligible for health insurance and COLA with 10 years of actual state service. You can earn a vested right to a retirement benefit, if you have at least 5 years of actual state service or 10 years of vesting service at the time you leave State Service.

The above examples are all based on an age 55 retirements.

Please also refer to Appendix A for a summary of Tier I, Tier II and Tier IIA health insurance and COLA eligibility requirements.

Health Insurance

Health Insurance continues to be provided by our Agency for one (1) month from the date of your retirement. After that date, the Retirement Division covers you. There is no break in coverage. You will receive new I.D. cards from the insurance carrier. Please note that you may not receive these cards for several months.

Information with regard to health insurance for retirees may be found at the OSC website at . The OSC provides a planner entitled “Health Care Options for Prospective Retirees” which provides potential retirees valuable information about retiree health insurance benefits.

You may change your health insurance at your retirement. After that, if you wish to change health plans, the only time you may do so is during the one month of the year that is designated by the State Comptroller to be the "Open Enrollment" month.

The Point of Enrollment (POE) options are available at no charge to retirees or annuitants, and their spouses and/or dependents. POE plans restrict health care service to a defined network of physicians and other health care providers. Members who wish to use providers outside the network pay the full cost of those services.

Point of Service (POS) plans are also available, although the retiree must pay part of the cost. These plans allow enrollees to obtain health care services both from network providers (at a small co-payment) and from health care professionals outside the network. Charges for the latter are reimbursed at the rate of 80% of the plan allowance for in-network services beyond an annual deductible.

The retiree share of the health insurance premium is based on four factors: the type of plan, your retirement date, the number of family members enrolled and the Medicare status of each person enrolled. State retirees who qualify for health insurance do not need to purchase additional Medicare supplement insurance, also known as Medigap insurance.

Dental Insurance

Retirees may enroll in any dental plan which is available at the time of their retirement. The State pays an amount equal to 20% of the premium of the dental plan and the retiree pays the balance. You may choose different companies for your healthcare and dental insurance coverage. You do not have to cover the same dependents in your healthcare as you do in your dental plan, but you must also be enrolled in that particular plan.

Health Insurance for Optionees

If you elect Option 1 (D), at the time of your death not only do all pension payments stop, but health insurance for any dependents you were covering through the State Employees Retirement System also ends. Those dependents would be offered the choice of assuming the full (100%) cost of the group health insurance for a limited period only (currently 3 years). After this period, all health insurance benefits available through the State will cease. Dependent reimbursement for Medicare Part B (normal premiums) will also end at your death.

If you elect Option 2 (A), 3 (B) or 4 (C), the State sponsored health coverage and the payment of any reimbursement of the Medicare Part B normal premiums would be extended at the time of your death to your spouse and your qualified dependents.

Continuation of State sponsored health insurance coverage after retirement is limited to the member’s: (1) spouse (including civil union partners) and (2) qualified dependents. In order to be reimbursed for Medicare Part B, a copy of the Medicare card(s) must be provided to the State Retirement Division.

Please remember, the optional form of payment you choose cannot be changed after retirement.

Vacation/Sick Time Accruals and Personal Leave Days

Accrued vacation and sick time is paid out at retirement. Vacation time is paid out up to the maximum allowable limit provided by your collective bargaining contract, or by State regulation for those not covered by collective bargaining. Sick time is paid out at one-quarter (1/4) of your accrued amount not to exceed a maximum of 60 days. Personal leave days are not paid out at retirement. You are encouraged to use any unused personal leave days prior to your retirement.

Retirement Date

In deciding the best date to retire, you should consider:

1. Your age at retirement

2. Your years of service

3. The shortest wait for a Cost of Living Allowance and

4. Your Federal and State income tax status.

Cost of Living Allowances (COLA'S)

If you transition directly from active state service to retirement, you will be eligible for an annual COLA (Cost of Living Allowance) which will range from a minimum 2.5% to a maximum of 6%. These increases are based on a formula which takes into account a portion of the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the 12 months immediately preceding your COLA anniversary date. The first increase will take place on the January 1st or July 1st (whichever comes first) after at least nine full months of retirement, and thereafter, on either the January or July anniversary date of your first increase.

IF YOU RETIRE ON ….. YOUR COLA WILL BE EFFECTIVE …...

January 1 January 1 (year later)

February 1 January 1

March 1 January 1

April 1 January 1

May 1 July 1 (year later)

June 1 July 1 “

July 1 July 1 “

August 1 July 1

September 1 July 1

October 1 July 1

November 1 January 1 (year later)

December 1 January 1 “

Group Life Insurance

A portion of the Group Life Insurance will be continued with the State paying the full cost. If you are retiring with 25 or more years of State service, you will receive Life Insurance equal to one-half of the amount of your eligible coverage, immediately preceding your retirement. However, your Life Insurance at retirement will never be less than $10,000.

For less than 25 years of State service, your Group Life Insurance coverage will be further and proportionally reduced based upon the number of years of service. You may elect to pay premiums to build the value of your insurance to the level that you maintained as an active employee. In order to do so, you must contact the Group Life Division of the Office of the State Comptroller within 30 days of the date of your retirement. Please direct your inquiry to (860) 702-3542.

Be sure that your beneficiary designations are up to date. Choosing or changing a retirement beneficiary does not change your life insurance beneficiaries.

Deferred Compensation

If you contribute to a deferred compensation account, you need to contact your agent or the Office of the State Comptroller at (860) 702-3543. They will notify you regarding the various options for payment. Please note that you must make your payment option selection within 90 days after your retirement.

Credit Union

Your account with the CSE Credit Union may be continued after your retirement. If you choose, you may have monthly deductions withheld from your pension by completing a Credit Union deduction slip. The Payroll Office can assist you with this before you retire. Once you are retired, you must coordinate changes directly with the Credit Union.

Note: On the deduction slip, the Agency Name is "Retirement Division Payroll".

Direct Deposit

Direct Deposit of your pension check is an available option and can be started at any time. If you are interested in Direct Deposit in a bank or credit union of your choice, you may obtain the necessary application from the Payroll Office before you retire; or you may contact the Retirement Division Payroll Unit at (860) 702-3528 any time after your retirement.

Pension Deductions

The only allowable deductions from your pension check are Federal and State withholding taxes, medical insurance premiums, CSE Credit Union deductions, dues and long term care premiums only if currently enrolled (you must coordinate continued LTC deductions directly with your provider). All other deductions that you had as an active employee will stop with your final paycheck from this Agency. You should also consult with a tax advisor to determine a monthly dollar amount to be deducted for State withholding taxes.

PROCEDURES FOR RETIRING

Step 1. Gather Information Necessary to Make Your Decision

Look to the resources mentioned in the Introduction on page 3 as you consider your retirement options.

Step 2. Contact the DMV Payroll Office

The Payroll Office will send you a letter providing information and forms which need to be completed to start the process. Included is the Notice of Retirement Date form which must be completed as explained in Step 3 below.

Step 3. Submit Your Notice of Retirement Date

Please submit your written Notice of Retirement Date to your immediate Supervisor with copies to your Bureau Chief/designee and the Payroll Office. Your retirement date must be made effective the first day of the calendar month. If possible please provide the Payroll Office with at least two months advance notice of your retirement date so that the necessary paperwork can be prepared for submission to the State Retirement Division. Official notice is considered to be the Notice of Retirement Date, signed by you and addressed to your

Supervisor stating the effective date of your retirement with copies sent to your Bureau Chief/designee and the Payroll Office.

Step 4. Submit Required Documents to the Payroll Office

It is necessary that you submit certain legal documents to the Payroll Office. You will also need to provide such information as the date of birth and Social Security Number for each person designated by you to participate in your retirement benefits. A list of documents and information required follows:

• Copy of your Birth Certificate*

• Copy of your Spouse's Birth Certificate*

• Copy of your Marriage Certificate

• Copy of your contingent annuitant's birth certificate*

• Medicare Card(s) - Hospital and Medical (if age 65 or older at date of retirement)

• Your Spouse or Contingent Annuitant and Beneficiary's Social Security Number

*If not available, then you may substitute any two documents in the list below:

• Census Record

• Religious Record

• Insurance Record

• Early School Record

• Military Record

• Passport

• Naturalization Papers

• Letter from Social Security

• Hospital Record

Step 5. Decide which Form of Benefit Payment Option is Best for You

There are a number of benefit payment options that are available under your retirement plan and which are described on pages 10 and 11. If you need additional information or assistance on this subject please contact DMV’s Human Resources Office, the Payroll Office or the State’s Retirement & Benefit Services Division (resource telephone numbers and websites are located in the Introduction on page 3).

Step 6. Decide the Best Healthcare and Dental Plan Coverage for You

Retirees may choose from a variety of health insurance plans that are designated as either Point of Enrollment (POE) or Point of Service (POS). Retirees may also enroll in any dental plan which is available at the time of their retirement. Medicare-enrolled retirees and dependents that join certain POE Medical Plans may be eligible for discounted premiums for their dental plans. For additional information and resources, please refer to pages 13 and 14.

Step 7. Payroll will Contact You for an Appointment

Once the required forms are completed and returned to the Payroll Office, a member of that Office will schedule an appointment to meet with you to review your forms and Retirement Application, obtain appropriate signatures for the remaining paperwork and answer any final questions you may have.

FREQUENTLY ASKED QUESTIONS ABOUT RETIREMENT

Who can I talk to regarding the procedures to be followed?

You may contact DMV’s Human Resources or Payroll Offices.

Who would I notify about my decision to retire?

Please submit your written Notice of Retirement Date to your immediate Supervisor, Bureau Chief/designee and the Payroll Office.

How much notice is required?

Your retirement date must be made effective the first day of the calendar month.

If possible, the Payroll Office prefers at least two months notice to prepare the necessary paperwork for submission to the State Retirement Division and to meet with you. Official notice is considered to be the Notice of Retirement Date which you have signed and addressed to your Supervisor, Bureau Chief/designee and Payroll Office stating the effective date of your retirement.

What documents do I need to submit to Payroll?

A complete list of documents can be found on pages 17 and 18. In general, you will need to submit copies of your Notice of Retirement Date and your birth certificate or acceptable substitutes. If applicable, you will also need to submit a copy of your spouse's birth certificate or acceptable substitutes, his/her Social Security number and a copy of your marriage certificate.

If you have named a contingent annuitant other than your spouse, you will need to submit a copy of the contingent annuitant's birth certificate or acceptable substitutes and his/her Social Security number.

If you name a beneficiary, you will need to submit that person's Social Security number.

If you or your spouse is 65 or older at the date of retirement, a copy of the Medicare card(s) for Part A (Hospital Insurance) and Part B (Medical Insurance) must be provided. This is required in order to be reimbursed for any Medicare Part B normal premium.

When does my retirement take effect?

Retirements always begin on the first day of the calendar month.

When can I expect to see my first retirement check?

Your first retirement check will be mailed out by the State Comptroller's Office at the end of the month in which your retirement becomes effective.

What does “full retirement age” mean under Tier 1, Plan B?

A Tier I, Plan B member’s retirement benefit is reduced when they reach “full retirement age” under the Social Security Act. While you can retire under Social Security any time between age 62 and full retirement age, your benefits will be reduced by a fraction of a percent for each month before you reach full retirement age. Full retirement age is based on your year of birth. For example, if you were born between 1943 and 1954, your full retirement age is 66. If you decide to start your Social Security benefit at age 62, you would receive 75% of your monthly benefit. The Social Security website retire2/ has a Retirement Planner which offers comprehensive information including a chart to help you determine your full retirement age under Social Security.

What happens to my group Life Insurance when I retire?

A portion of the group Life Insurance will be continued with the State paying the full cost. If you are retiring with 25 or more years of service, you will receive life insurance equal to one-half of the amount of your eligible coverage, immediately preceding your retirement. However, your life insurance at retirement will never be less than $10,000.

For less than 25 years of service, your coverage will be proportionally reduced based upon the number of years of service.

Upon retirement, will I be able to participate in the State's direct paycheck deposit program?

Yes, providing that you complete and submit the appropriate form.

What happens to my health and dental insurance?

Your health and dental insurance will be converted from active to retiree's insurance on the first day of the month following the effective date of your retirement. Please refer to pages 13 and 14.

The State of Connecticut reimburses the normal cost of Medicare Part B for the retiree and the spouse. The reimbursement is included in the pension check. A copy of the Medicare card(s) must be provided to the State Retirement Division in order for this reimbursement to be made.

Will Social Security be deducted from my pension check?

No, the benefits you receive from the SERS (State Employees Retirement System) retirement program are separate and distinct from Social Security benefits which you may be entitled to receive. However, if you are a member of the Tier I, Plan B Program, your pension will be reduced when you attain your full retirement age under the Social Security Act, or upon receipt of a Social Security Disability Award, if earlier.

Will I be paid for accrued sick or vacation leave? And personal leave days?

You will be paid for one-quarter of your accrued sick leave, not to exceed a maximum payout of 60 days. If entitled to vacation leave, you will be paid for your accrued leave balance, up to the maximum allowable limit provided by your collective bargaining contract or by State regulation. Personal leave days are not paid out at retirement. You are encouraged to use any unused personal leave days prior to your retirement.

Will I be eligible to receive cost of living allowances (COLA’S)?

When you transition from active State service to retirement, you will be eligible for annual COLA’s (refer to schedule on page 15). The first increase will take place on either January 1st or July 1st (whichever comes first after you have completed at least nine full months or retirement). Future increases will occur either on the January 1st or July 1st anniversary of your first increase. Refer to Appendix A for vested rights entitlements to Health Insurance and COLA’s.

What is the tax status of my retirement income?

Your retirement income is subject to both Federal and State Income Tax. You will be issued a 1099R at the end of the calendar year.

Which Retirement Plan will I be in if I've had a break in State service?

If you worked for the state as a Tier I member, left your job, then were rehired between July 2, 1984 and July 1, 1997, Tier II Plan membership was mandatory unless:

• You already earned and retained your right to a vested retirement benefit from the Tier I Plan.

• You returned to state service after a period during which you were receiving state retirement benefits, including disability retirement benefits, from the Tier I Plan;

• You were re-employed on or after July 1, 1988, but within five years of your prior termination as a Tier I member;

• You were away for more than five years, but your previous state service as a Tier I member was longer than the length of time you were away. (For example, you worked for the state for eight years, left your job, and returned after a six-year absence).

In the above exceptions, you resumed membership in the Tier I Plan.

If you worked for the state as a Tier I or Tier II member, left your job, then were rehired on or after July 1, 1997, Tier IIA Plan membership was mandatory as of the date you were rehired unless:

• You already earned and retained your right to a vested retirement benefit from the Tier I or Tier II Plan;

• You returned to state service after a period during which you were receiving state retirement benefits, including disability retirement benefits, from the Tier I or Tier II Plan;

• The time you were away from state service is less than your prior actual state service or 5 years, whichever is greater.

In the above exceptions, you resumed membership in the Tier I or Tier II Plan based upon your original membership.

APPENDIX A

STATE EMPLOYEES RETIREMENT SYSTEM (SERS) APPENDIX A

TIER I, TIER II, AND TIER IIA ELIGIBILITY REQUIREMENTS

SUMMARY FOR NON-DISABILITY PENSION BENEFITS, RETIREE

HEALTH INSURANCE AND COST OF LIVING ALLOWANCES (COLA)

|TIER |RETIREMENT TYPE |STATUTE/DOCUMENT REFERENCE |AGE AND SERVICE REQUIREMENTS FOR COMMENCEMENT OF PENSION |ENTITLED TO RETIREE HEALTH |ENTITLED TO COLA |

| | | |BENEFITS |COVERAGE | |

| I |NORMAL |5-162/TIER I |AGE 55 WITH 25 YEARS CREDITED SERVICE |YES |YES |

| | |SUMMARY PLAN |AGE 65 WITH 10 YEARS CREDITED SERVICE |YES |YES |

| | |DESCRIPTION (SPD) |AGE 70 WITH 5 YEARS CREDITED SERVICE |YES |YES |

| | | | | | |

| |EARLY |5-162, 5-163/TIER I |AGE 55 WITH 10 YEARS ACTUAL SERVICE |YES |YES |

| | |SPD |AGE 60 WITH 10 YEARS CREDITED SERVICE |YES |YES |

| | | | | | |

| |HAZARDOUS DUTY |5-173/TIER I SPD/ |ANY AGE WITH 20 YEARS HAZARDOUS DUTY SERVICE |YES |YES |

| | |1988-1994 PENSION ARBITRATION | | | |

| | |AWARD (P.A.A.) | | | |

| | | | | | |

| |VESTED RIGHTS |5-166/TIER I SPD |AGE 55 WITH 10 YEARS ACTUAL SERVICE | | |

| | | |AGE 60 WITH 10 YEARS CREDITED SERVICE |YES |YES |

| | | | |YES |YES |

| II|NORMAL |50192/TIER II/SPD/ |AGE 60 WITH 25 YEARS AVESTING SERVICE |YES |YES |

| | |1988-1994 P.A.A./ |AGE 62 WITH 10 YEARS VESTING SERVICE |YES |YES |

| | |SEBAC V |AGE 62 WITH 5 YEARS ACTUAL SERVICE- |YES |YES |

| | |AGREEMENT |EFFECTIVE 7/1/97 | | |

| | | |AGE 70 WITH 5 YEARS VESTING SERVICE |YES |YES |

| | | | | | |

| |EARLY |5-192m/TIER II SPD/ |AGE 55 WITH 10 YEARS VESTING SERVICE |YES |YES |

| | |1988-1994 P.A.A. | | | |

| | | | | | |

| | | | | | |

| |HAZARDOUS DUTY |5-192n/TIER II SPD/ |ANY AGE WITH 20 YEARS HAZARDOUS DUTY SERVICE |YES |YES |

| | |1988-1994 P.A.A. | | | |

| |VESTED RIGHTS | |AGE 55 WITH 10 YEARS VESTING SERVICE | | |

| | |5-192o/TIER II SPD/ |AGE 65 WITH 5 YEARS ACTUAL SERVICE- |YES |YES |

| | |1988-1994 P.A.A./ |EFFECTIVE 7/1/97 |NO |YES |

| | |SEBAC V | | | |

| | |AGREEMENT/ | | | |

| | |1997-99 BIENNIAL | | | |

| | |BUDGET | | | |

| | |LEGISLATION | | | |

| IIA |NORMAL |5-193f, 5-193l/ |AGE 60 WITH 25 YEARS VESTING SERVICE |YES |YES |

| | |SEBAC V |AGE 62 WITH 10 YEARS VESTING SERVICE |YES |YES |

| | |AGREEMENT |AGE 62 WITH 5 YEARS OF ACTUAL SERVICE |YES |YES |

| | | | | | |

| |EARLY |5-193m/SEBAC V |AGE 55 WITH 10 YEARS VESTING SERVICE |YES |YES |

| | |AGREEMENT | | | |

| | | | | | |

| |HAZARDOUS DUTY |5-193n/SEBAC V |ANY AGE WITH 20 YEARS HAZARDOUS DUTY SERVICE |YES |YES |

| | |AGREEMENT | | | |

| |VESTED RIGHTS | |AGE 55 WITH 10 YEARS VESTING SERVICE | | |

| | |5-193o/SEBAC V | |YES- if 10 years actual state|YES if 10 years |

| | |AGREEMENT | |service |actual state |

| | | |AGE 65 WITH 5 YEARS ACTUAL SERVICE | |service |

| | | | |NO |NO |

Entitlement to the State-sponsored retiree health coverage is conditional upon (1) being eligible for normal, active group health coverage immediately prior to termination or at the time the SERS vesting requirements are satisfied or (2) being vested in the SERS as of 6/30/92. The “Entitled to Retiree Health Coverage” column in this chart may be utilized only when one of these two conditions is satisfied.

RETIREMENT & BENEFIT SERVICES DIVISION 1/09

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