Connecticut General Statutes 10-183j – Benefit options. Period certain. Coparticipant’s option. Retention of option after divorce
(a) A member shall elect one of the benefit options described in this section. A member may amend or revoke such benefit option election by delivering written notice, signed by the member and notarized, to the board prior to the date of the member’s retirement. A member’s benefit option election may not be amended or revoked after the member’s date of retirement.
Terms Used In Connecticut General Statutes 10-183j
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- 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
- Coparticipant: means a person who the member elects at the time of retirement to receive guaranteed lifetime benefits upon the death of the 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
- Designated beneficiary: means a person designated on a form prescribed by the board by a member to receive amounts that may become payable under this chapter as the result of the member's death. See Connecticut General Statutes 10-183b
- 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
- Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
(b) A member may elect the Plan N single life option. A member electing this option shall receive benefits as described in § 10-183g.
(c) A member may elect the Plan C period certain option. A member electing this option shall receive an actuarially reduced benefit for a fixed period of time selected by such member. Such member may select a fixed period of twenty-five years or such shorter period as the board may offer. If such member dies before receiving the benefit for the selected period, such benefit shall be paid to the member’s designated beneficiary for the remainder of such period. If such member’s designated beneficiary dies before such member, or if such member has no designated beneficiary and such member dies before receiving the benefit for the selected period, any remaining benefit shall be paid to such member’s estate as a commuted value. If there are multiple designated beneficiaries and a designated beneficiary dies before the end of the selected period, the deceased designated beneficiary’s remaining benefit shall be allocated equally to the remaining living designated beneficiaries. If a sole designated beneficiary dies before the end of such period, any remaining benefit shall be paid to the designated beneficiary’s estate as a commuted value.
(d) (1) A member may elect the Plan D coparticipant‘s option. A member electing this option shall receive an actuarially reduced benefit as described in subdivision (2) of this subsection and, upon such member’s death, one-third, one-half, two-thirds, three-fourths or all of such benefit shall be paid to such member’s designated beneficiary for life. Any member who elects this option shall select one designated beneficiary, who shall be such member’s coparticipant. The member’s selection of a designated beneficiary shall be irrevocable and shall terminate only as provided in this subsection. With respect to any benefits which become effective on or after January 1, 2001, if twenty-five per cent of the aggregate benefits paid to the member or such member’s designated beneficiary are, upon the death of such member or such designated beneficiary, less than such member’s accumulated contributions plus credited interest, the estate of such member or such designated beneficiary, as appropriate, shall be paid a lump sum amount equal to the difference between such aggregate benefits paid and such accumulated contributions plus credited interest.
(2) The benefits payable to a member electing the Plan D coparticipant’s option and such member’s coparticipant shall be computed as follows:
(A) The benefit payable to such member at retirement and to such coparticipant upon such member’s death shall be the actuarial equivalent of the normal, early, proratable or deferred vested benefit for which such member is eligible and based upon such member’s age at retirement and the age of such coparticipant on such retirement date. In the event the member predeceases the coparticipant, upon the death of the coparticipant, any remaining value in the account shall be paid in a lump sum to the coparticipant’s estate. In the event (i) the coparticipant predeceases the member, (ii) the member and the coparticipant divorce, or (iii) the member and the coparticipant legally separate on or after July 1, 2020, the member’s actuarially reduced benefit shall revert to an unreduced benefit under Plan N and, upon the member’s death, any remaining value in the member’s account shall be paid to the member’s designated beneficiary, if any, or, if there is no designated beneficiary, to the member’s estate.
(B) (i) Except as provided in this subparagraph, a coparticipant option shall be terminated, for any member whose designated coparticipant dies or is divorced from the member after the member’s retirement, on the date of such death or divorce. Such member shall thereupon be paid the normal, early or proratable retirement benefit for which the member is eligible. (ii) On and after July 1, 2016, upon the divorce of a member and the member’s designated coparticipant or upon the legal separation of a member and such member’s designated coparticipant occurring on or after July 1, 2020, and subsequent to the member’s retirement, the member may retain the coparticipant designation and the coparticipant option elected at the time of retirement by filing a domestic relations order with the board.