Governor Lamont’s Proposed Changes to Connecticut’s Teachers’ Retirement System (TRS)
Apr 25, 2019 - less than 1 minute
Governor Ned Lamont’s proposed biennial state budget for fiscal years 2020 and 2021 contains several changes to the Connecticut Teachers’ Retirement System (TRS). The purpose of this explainer document is to detail Governor Lamont’s proposed changes to the TRS and to analyze the projected impact of these changes on the system and the State of Connecticut.
Governor Lamont's proposed changes include:
- Reamortizing the TRS' current Unfunded Actuarial Accrued Liability (UAAL)
- Creating a Teachers' Retirement Fund Bonds Special Capital Reserve Fund backed by a General Fund surplus and lottery receipts
- Reducing the TRS' assumed rate of return from 8% to 6.9%, in line with the State Employees Retirement System (SERS)
- Limiting credited interest on mandatory contributions to 4% annually
- Increasing "Form N" member contribution account to 50% of benefit
- Altering the mechanisms for reamortizing the unfunded liability of potential benefit increases
This resource also includes the actuarial projections, from Connecticut's Office of Policy and Management, for the governor's proposed changes to the TRS.
Citation for Explainer Document
Connecticut School Finance Project. (2019). Governor Lamont's Proposed Changes to Connecticut's Teachers' Retirement System (TRS). New Haven, CT: Author. Retrieved from http://ctstatefinance.org/assets/uploads/files/Lamonts-Proposed-TRS-Changes.pdf.
Citation for Actuarial Projections
State of Connecticut, Office of Policy and Management. (2019). Actuarial Projections for Governor Ned Lamont’s Proposed Changes to Teachers’ Retirement System. Hartford, CT: Author. Retrieved from http://ctstatefinance.org/assets/uploads/files/Actuarial-Projections-for-Governor-Lamont-Proposed-TRS-Changes.xlsx.