AN ACT AGGREGATING YEARS OF SERVICE IN THE PROBATE JUDGES AND EMPLOYEES RETIREMENT SYSTEM AND THE MUNICIPAL EMPLOYEES' RETIREMENT SYSTEM AND CLARIFYING THE RETIREMENT INCOME FOR CERTAIN RETIREES.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Section 45a-34 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2016):

The following words and phrases as used in sections 45a-34 to 45a-54, inclusive, and section 45a-75 except as otherwise provided, shall have the following meanings:

(1) "Average final compensation" means [,] (A) in the case of a judge of probate, the average annual compensation for the three highest paid years of service while serving in the [probate court] Probate Court to which the judge was elected or by citation to any other court or courts, including any compensation received for service (i) on or after June 1, 2004, as an administrative judge for a regional children's probate court under section 45a-8a, or (ii) on or after July 1, 2007, as a special assignment probate judge under section 45a-79b, provided, for the purposes of this section, the compensation for any one year shall not exceed the maximum net annual income currently allowed by law, and, (B) in the case of an employee, the average annual rate of pay during the employee's three highest paid years of employment;

(2) "Credited service" means (A) all periods during which a person held the office of judge of probate and (i) any period of service elected by a judge pursuant to section 45a-36a, [and] (ii) any period of service as an administrative judge for a regional children's probate court after such judge [ceases] ceased to serve as a probate judge, provided such administrative judge [works] worked as an administrative judge at least one thousand hours per year, and (iii) any period during which such person was employed by a participating municipality, as defined in section 7-245, after such person ceased to serve as a probate judge, provided such person participated in the municipal employees' retirement system while so employed, or (B) all periods during which a person served as an employee of any [probate court] Probate Court and any period during which such person was employed by a participating municipality, as defined in section 7-245, after such person ceased to serve as an employee of a Probate Court, provided such person participated in the municipal employees' retirement system while so employed, or (C) subject to the requirements of subsections (a) and (b) of section 45a-54, a period of not more than three years for service as a member of the General Assembly and military service, or (D) the aggregate of any periods of service provided for in subparagraphs (A), (B) and (C) of this subdivision;

(3) "Employee" means (A) with respect to a person employed or who serves prior to January 1, 2011, a person employed by any [probate court] Probate Court for more than four hundred thirty hours per year or a person who served for more than four hundred thirty hours per year performing under any contract of employment with any [court of probate] Probate Court, and (B) with respect to a person first employed or who first serves on or after January 1, 2011, a person employed by any [probate court] Probate Court for at least one thousand hours per year or a person who serves at least one thousand hours per year performing under any contract of employment with any [court of probate] Probate Court;

(4) "Fund" means the retirement fund established by section 45a-35;

(5) "Judge" means a judge of probate, except that, with respect to a judge first elected for a term beginning on or after January 5, 2011, judge means a person who holds the office of judge of probate and works in such judge's capacity as a judge of probate for at least one thousand hours per year as determined pursuant to information filed by the judge of probate with the Probate Court Administrator pursuant to subsection (h) of section 5-259;

(6) "Member" means any judge of probate or employee who is or may become eligible for retirement benefits under sections 45a-34 to 45a-54, inclusive, and 45a-75;

(7) "Normal retirement age" means the age of sixty-two for any judge of probate or any employee;

(8) "Old Age and Survivors System" means the system established under Title II of the Social Security Act, as amended;

(9) "Pay" means the salary, wages or earnings of an employee, but does not include any fees or allowances for expenses;

(10) "Retirement Commission" means the State Retirement Commission; and

(11) "Social Security Act" means the Act of Congress, approved August 14, 1935, Chapter 531, 49 Stat. 620, officially cited as the Social Security Act, including regulations issued pursuant thereto, as such act has been and may from time to time be amended.

Sec. 2. Section 7-438 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2016):

(a) Any member retired under this part who again accepts employment from this state or from any municipality of this state other than a participating municipality, shall continue to receive his retirement allowance while so employed, and shall be eligible to participate, and shall be entitled to credit, in the state retirement system for the period of such state employment, but any such member shall not be eligible to participate or be entitled to credit in any municipal retirement system for the period of such municipal employment.

(b) If a member is retired under this part and again accepts employment from the same municipality from which he was retired or any other participating municipality, he shall be eligible to participate, and shall be entitled to credit, in the municipal employees' retirement system for the period of such municipal employment. Such member shall receive no retirement allowance while so employed except if (1) such employment is for less than twenty hours per week, or (2) his services are rendered for not more than ninety working days in any one calendar year, provided that any member reemployed for a period of more than ninety working days in one calendar year shall reimburse the Municipal Employees' Retirement Fund for retirement income payments received during such ninety working days.

(c) Upon the subsequent retirement of a member who had again accepted employment from the state or a municipality in accordance with subsection (a) or (b) of this subsection, such member's retirement income shall be recomputed on the basis of his or her total period of credited service, excluding any period for which a retirement income was paid under subdivisions (1) and (2) of subsection (b) of this section, and with such member's final average earnings recomputed on the basis of his or her three highest-paid years of public service. Notwithstanding the above, such member's retirement income upon such subsequent retirement shall not be less than his or her original retirement income as increased by any cost-of-living adjustments that occurred or would have occurred but for such member's reemployment after such original retirement.

Statement of Purpose:

To allow Probate Court judges and employees to aggregate their service time in the probate judges and employees retirement system and the municipal employees' retirement system and to allow cost-of-living adjustments to continue to accrue during certain public employees' terms of reemployment.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]