State of Connecticut Retirement Plan Comparison Chart

State of Connecticut Retirement Plan Comparison Revised 12/2011 This chart compares key features of the State’s mandatory retirement plan options for full-time teachers and professional staff members in higher education. Part-time faculty covered under certain collective bargaining agreements also have a one-time option of waiving membership in these plans. For more details about each of these plans, please refer to the appropriate plan Web site under “For more information” identified below. Plan State Employees Retirement System Tier III State Employees Retirement System Hybrid Plan Alternate Retirement Program Teachers Retirement System Type of Plan Defined Benefit Defined Benefit with a “Cash Out” Option Defined Contribution Defined Benefit Eligibility State employees, full-time and part-time Teachers and professional staff members within CT higher

education system and central office staff of Dept. of Higher Education Teachers and professional staff members within CT higher education system and central office staff of Dept. of Higher Education State employees in position requiring CT teaching certification, or employees teaching in CT higher education system (half time or more) (may be limited by collective bargaining agreement) Time for Selection By New Employees Enrollment is mandatory for employees who do not select another plan within 60 days Must be elected within 60 days of commencing employment Must be elected within 60 days of commencing employment Must be elected within 60 days of commencing employment Employee Contribution 2% of compensation (pre-tax) 5% of compensation (pre-tax) 5% of compensation (pre-tax) 7.25% of compensation (pre-tax) Excludes earnings from coaching, summer school, or non-teaching work Employer Contribution Actuarially determined Actuarially determined 8% of compensation Actuarially determined Benefit Calculation Formula based in part on average of 5 highest years earnings and years of service. See summary plan description (reference below) Formula based in part on average of 5 highest years earnings and years of service. See summary plan description (reference below) Based solely on contributions and investment performance of account Formula based on average of 3 highest years earnings multiplied by years of service. See website (below) for details Investment Method Professionally managed Professionally managed Employee-directed, menu of mutual or annuity funds Professionally managed Investment Risk Employer Employer Employee Employer Page 1 of 3 State of Connecticut Retirement Plan Comparison Revised 12/2011 This chart compares key features of the State’s mandatory retirement plan options for full-time teachers and professional staff members in higher education. Part-time faculty covered under certain collective bargaining agreements also have a one-time option of waiving membership in these plans. For more details about each of these plans, please refer to the appropriate plan Web site under “For more information” identified below. Plan State Employees Retirement System Tier III State Employees Retirement System Hybrid Plan Alternate Retirement Program Teachers Retirement System Earliest Benefit Eligibility Age 58 + 10 years vesting service Age 58 + 10 years vesting service Age 55 (applies to employees with 5 or more years of participation) 20 years of service (15 in CT), age 55 25 years of service (20 in CT), any age Normal Retirement Age Age 63, 25 years vesting service Age 65, 10 years vesting service Age 63, 25 years vesting service Age 65, 10...

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