Connecticut General Statutes 10-183xx – Rollover accounts for members who submit retirement application: Distributions. Polices and procedures. Restrictions
(a) The Teachers’ Retirement Board shall establish a rollover account for each active, inactive and disabled member who submits a formal application of retirement, as defined in § 10-183b. Any such member may make rollover contributions of any pretax assets maintained in an eligible retirement plan to such rollover account at any time within two months prior to such member’s retirement date, as designated in such application. The board shall not accept any such rollover contribution after a member’s retirement date. For purposes of this section, “eligible retirement plan” means an eligible retirement plan as defined in Section 402(c)(8)(B) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time.
Terms Used In Connecticut General Statutes 10-183xx
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- 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
- Disabled: means the inability to perform any teaching service, whether or not such service is performed full-time or part-time, in a public or nonpublic school or a nonschool setting, on a volunteer basis or for compensation, within or without the state, or engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that (A) is permanent or can be expected to last continually for not less than twelve months from the onset of such impairment, or (B) can be expected to result in death or to be of long-continued and indefinite duration, except that during the first twenty-four months that a member is receiving a disability allowance, "disabled" means the inability to perform the usual duties of the member's occupation by reason of any such impairment. See Connecticut General Statutes 10-183b
- Formal application of retirement: means : (A) the member's application, birth certificate or notarized statement supported by other evidence satisfactory to the board, in lieu thereof, (B) records of service, if such records are required by the board to determine a salary rate or years of creditable service, (C) a statement of payment plan, including, if applicable, the fixed period of time selected by a member under Plan C or the coparticipant's share designated under Plan D, (D) in the case of an application for a disability benefit, a physician's, a physician assistant's or an advanced practice registered nurse's statement of health, and (E) any other documentation required by the board. See Connecticut General Statutes 10-183b
- Internal Revenue Code: means the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended, and any regulations promulgated under or interpretations of said code that may affect this chapter. 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
- Retired member: means a member who receives a retirement benefit computed pursuant to §. See Connecticut General Statutes 10-183b
(b) Commencing with retirements effective September 1, 2021, or later, any amount in a retired member‘s rollover account shall be distributed to such member in the form of an actuarially equivalent annuity for life, using the annuity rates adopted by the board for the selected retirement date and under the terms and conditions of the payment plan option the member selected on his or her formal application of retirement, as defined in § 10-183b. If such member dies prior to the date of his or her retirement, the accumulated rollover funds shall be distributed under the terms and conditions of the payment plan option the member elected on such application.
(c) The board shall adopt policies and procedures regarding the prudent and efficient operation of rollover accounts established pursuant to subsection (a) of this section, which shall include, but need not be limited to, application and payment procedures for such accounts.
(d) The funds in a member’s rollover account shall be used only for distributions in accordance with subsection (b) of this section. The funds in such account may not be applied toward the purchase of additional credited service pursuant to § 10-183e. No interest shall be applied to any funds contained in a member’s rollover account.
(e) Rollover contributions made in accordance with this section shall not be treated as contributions, as defined in § 10-183b, and the board shall not subject such contributions to the limitations imposed under Section 415(c) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time.