2012

April 20, 2012 Longevity Payments

January 23, 2012

Longevity payments for 2012 will be included in the following check dates:

• April 20, 2012

• Oct. 19, 2012

Due to the 2011 Concession Agreement, members who receive longevity payments are frozen at their 2011 longevity rate for the next three longevity payments (April 2012, Oct. 2012, April 2013).

Tax Glitch Affects Transfer to Tier II Hybrid Plan

March 27, 2012

> NEW: Expanded Q & A on Hybrid Plan (4/4/12)

> NEW: Recorded ARP to SERS Hybrid Webinar (4/13/12) >  ARP to SERS Hybrid Transfer Plan (Comptroller's Website)

Includes rate chart for those using TIAA encumbered funds to purchase prior service.

> Hybrid Plan Summary Description (Comptroller's Website)

> SEBAC ARP Grievance "SAG" Award (Comptroller's Website) Includes information and estimators for pursuing this option should the IRS grant approval.

Updated 4/5/12: A new and expanded Q & A on the Hybrid Plan has been added (see top link) The most significant change is that we have dealt successfully with a tax glitch that concerned the Tier II Hybrid which threatened to derail the entire process. The IRS has changed its view on one aspect that affects the Tier II Hybrid Plan.  The result is that those switching to the Tier II Hybrid will contribute 5% of salary to their retirement plan with 3% going to the Hybrid and 2% going to their ARP account. All ARP participants who were hired before July 1, 1997 (Tier II) and who are considering switching to the Tier II Hybrid Plan, should pay very careful attention to this issue, which is reflected in Question 2.

SERS Hybrid Transfer Delay Updated 3/27/12

The State Comptroller's Office is NOT going to have the past service credit estimators ready by their original April 1 deadline. These estimators will allow those who are considering the Hybrid Plan to determine how much it will cost to purchase past service credit and how much past service credit their ARP and other qualifying retirement funds will buy.

The Comptroller's office has told SEBAC that while they have the actuarial charts in hand, the complexity of the actuarial issues involved in creating the estimators and testing them means that they will not be available for "about two weeks."  We are obviously disappointed by this news and will let you know the new date when we have one.

Status Report on Implementation of Hybrid Plan for Employees with Pre 7/1/11 Hire Dates Updated 2/22/2012

1)  The “window” for choosing to transfer with or without the purchase of past service will be open no later than April 1, 2012, and will close as previously announced – 90 days following the IRS ruling on the “SAG” award.  Those participants choosing to purchase past service credit in the Hybrid Plan will be required to do so at the time of transfer.

2)  Funds available to use for purchase of service will be those In the participant’s ARP account and other state funds.  All unencumbered ARP funds may be used to purchase past service in accordance with the previously agreed actuarial charts.

3)  Encumbered funds subject to yearly release due to TIAA-CREF rules will be available as well, but will require agreement to the provisions of the Individual Encumbered Funds Form. That form guarantees that encumbered funds are available to the SERS system upon their release, and uses the discounted present value of those funds for the purpose of purchase of past service in the Hybrid Plan. [The form is still being finalized]

4)  The window for transfer and possible purchase of past service credit for participants in the ARP who are not participants in the Social Security  system will be open on April 1 along with other ARP participants.  The Comptroller has determined that there is no possibility that retroactive coverage in the Social Security system (and its concomitant retroactive tax liability) will be required.  So non-Social security covered ARP participants will be eligible to purchase service with everyone else on April 1st.  Those ARP participants who join the ARP will become social security eligible on a prospective basis only. _______________________________________________

Background Information:

SEBAC 2011 created a new Hybrid retirement plan option for professional employees of Higher Education institutions.   The plan was created by Paragraph II.C. 7 of the Agreement, which reads:

Hybrid Defined Benefit/Defined Contribution Plan for Employees in Higher Education: Individuals hired on or after July 1, 2011 otherwise eligible for the Alternate Retirement Plan (hereinafter referred to as "ARP") shall be eligible to be members of the new Hybrid Plan in addition to their existing choices. Individuals who are currently members of the ARP shall be eligible to join the Hybrid Plan on a one time option at the full actuarial cost. The Hybrid plan shall have defined benefits identical to Tier II/IIA and Tier III for individuals hired on or after July 1, 2011, but shall require employee contributions three percent (3%) higher than the contribution required from the Applicable Tier ll/IIA/lll Plan. An employee shall have the option, upon leaving state service, of accepting the defined benefit amount, or electing to receive a return of his/her contributions to the Hybrid Plan, plus a five percent (5%) employer match, plus four percent (4%) interest (hereinafter referred to as the "cash out option" . In the event the employee elects the cash out option, he/she shall permanently waive any entitlement they may have to health insurance as a retired state employee unless they convert the cash out option to a periodic payment as would be required under the current ARP plan.

Higher Ed Bills in the Legislative Pipeline

April 10, 2012

There are a number of bills affecting the community colleges that we are following:

• House Bill 5028: AN ACT CONCERNING THE ALIGNMENT OF COMMON CORE STATE STANDARDS WITH COLLEGE CURRICULUM This bill requires alignment of common (High School) core standards with college-level programs at Connecticut institutions of higher education. A substitute bill was approved by the Higher Education Committee, Education Committee, and Appropriations Committee. The substitute bill changes the grade level for college readiness assessment from grade 11 to grade 10.

• House Bill 5030: AN ACT CONCERNING THE DEVELOPMENT OF A GENERAL EDUCATION CORE OF COURSES This bill calls for seamless student transfer from Community Colleges to the State University System via a general education core of courses of at least 30 academic credits to be implemented by July 1, 2013. Faculty members from the affected higher education institutions will be included in the development and implementation of a general education core of courses. The bill passed the House unanimously after an amendment removed the University of Connecticut from the bill.

• Senate Bill 39: AN ACT CONCERNING REQUIREMENTS FOR EARLY CHILDHOOD EDUCATORS This clarifies the staff qualification requirements for early childhood education programs serving infants, toddlers or preschool age children. Substitute language requires all individuals in the program who have primary responsibility for a classroom of children to meet staff qualifications requirements. The substitute bill was approved by the Higher Ed Committee and sent to the Senate floor for action.

• **Senate Bill 40:**AN ACT CONCERNING OPEN ACCESS TO COLLEGE LEVEL COURSES This allows all students open access to entry level courses at the college level and prohibits Connecticut institutions of higher education from forcing any student to enroll in a remedial course. Substitute language details concepts such as using “multiple commonly accepted measures of skill level” to assess student's needs and to create intensive, embedded support while the student is in an introductory course. It calls for development of these intensive programs, as well as, college readiness testing in high schools. The Higher Ed Committee approved the substitute bill and sent it to the floor of the Senate for action.

• Senate Bill 42: AN ACT CONCERNING THE SELECTION PROCESS FOR MEMBERS OF THE FACULTY ADVISORY COMMITTEE TO THE BOARD OF REGENTS FOR HIGHER EDUCATION This bill clarifies the composition of the committee and the means and manner under which elections will be conducted. The language approved by the committee allows for the election of three faculty and one administrative representative from each of the systems. It also specifies that unions are not required to be involved in the election process. Thirdly, it adds the words “fair and open” with regard to the system-wide election of faculty senate members. The Higher Ed Committee approved the bill and sent it to the Senate floor for action.

• Senate Bill 241: AN ACT ALLOWING ADJUNCT FACULTY MEMBERS OF THE REGIONAL COMMUNITY-TECHNICAL COLLEGES TO WAIVE MEMBERSHIP IN A STATE RETIREMENT PLAN The bill permits adjunct community college faculty members to waive membership in a Connecticut retirement plan just as adjunct faculty members employed by the Connecticut State University System and the University of Connecticut are permitted to do. The Higher Ed Committee and the Labor Committee approved the bill and sent it to the Senate floor for action.

Legislative Report

May 15, 2012

The legislature’s Higher Education Committee pursued a goal this year of removing barriers to attaining a college degree in a reasonable amount of time. In their view, too many students were languishing in remedial courses where many not only used up their financial resources, but also grew discouraged and quit. Further, too many other students were dismayed to find their credits did not transfer from one state college to another, again requiring additional courses, time, and money. Here’s a summary of the key legislation which passed that will affect community colleges and 4C’s members. Click on the title for a link to the full bill: 

• Remedial Education: Distressed by statistics that indicate students in higher education remedial programs are not staying in school to earn college degrees, the Legislature’s Higher Education Committee sought to try a new approach. The Legislature passed a bill that will require the Community Colleges (CTC) and State Universities (CSUS) to develop a one-semester intensive college readiness program and to embed remedial support in entry-level English and math courses. The bill generally prohibits other forms of remedial education at the college level beginning by the 2014 fall semester. The bill requires that college readiness be assessed in high school at the 8th and 10th grade levels so that students have time to get up to speed before applying to college. The bill also requires that high schools and colleges work together to align their curricula so that successful completion of high school math and English meet common core state standards for college readiness. Common Core Curriculum: The CSUS and the CTC have until July 1, 2013 to develop a general education core of courses of at least 30 academic credits. A student who earns academic credits from the core will be able to transfer those credits to any other CSUS or CTC institution and have them count towards that college’s core requirements. The goal is efficient and easy transfer between Board of Regents (BOR) institutions that is seamless.

• Faculty Advisory Committee: This bill expands the size of the Faculty Advisory Committee to the Board of Regents for Higher Education from 7 members to 10. Each system (CTC, CSUS, and Charter Oak State College) will add a slot for an administrative employee that provides direct student services. The other seven members must be teaching faculty. The bill specifies that committee members are to be elected in an open system-wide vote by each BOR institution’s faculty/professional staff governance body by October 1, 2013.

• Adjuncts May Waive Retirement Benefits: Newly-hired community college adjuncts will be able to waive participation in a state employee retirement plan within 60 days of beginning employment. The waiver remains irrevocable if the faculty member remains part-time within any of the public higher education systems, but does not apply if the faculty member becomes a full-time employee. Adjuncts at the Connecticut State Universities and the University of Connecticut already had the right to waive retirement benefits.

Comptroller Kevin Lembo Meets with 4Cs Retirees

September 11, 2012

Comptroller Kevin Lembo joined 4Cs Retirees at their monthly meeting on September 11.

In a wide-ranging discussion that lasted more than one hour, the group covered topics such as efforts to promote aging in place, how to keep younger retirees in Connecticut and engaged, steps being taken to address the backlog of pension audits, the lengthy process for making changes in state government, and more.

The 4Cs Retirees meet on the second Tuesday of each month, 10 AM to 12 PM, at the 4Cs Office. For more information, contact President Bill Searle.

Changes in the Community College System are Aimed at Helping our Students

November 15, 2012

Recently, 4C's President Steve Cohen, Political Director Bob Fernandez, Staff Organizer David Bosco, and lobbyist Robert Shea met with Governor Malloy's Chief of Staff, Mark Ojakian, and Governor Malloy's Education Policy Director, Elizabeth Donohue, to discuss the changes in leadership of the Connecticut State Colleges and Universities System (ConnSCU) and their potential impact on 4C's members.

We were assured that any changes that are being made or contemplated are focused on driving more resources into the classroom. Further, any savings that are realized through management reorganization will remain for the use of our ConnSCU System. This is great news for us!

The 4C's has a good relationship and an open line of communications with the Malloy Administration and with Higher Ed Officials. We will continue to participate actively in all discussions regarding changes that affect 4C's members. It is important to note that pursuant to the SEBAC Agreement, all principal bargaining unit members' jobs are protected through June 30, 2015.

"We will know more as time progresses", said 4C's president Steve Cohen. "If there is any potential harm to a 4C's member, we will act immediately. If not, let's continue to do our fine work for our students and our communities."

Updated Q & A on Hybrid Retirement Plan

December 14, 2012

SEBAC attorney Dan Livingston has once again UPDATED  the Q & A on Hybrid Retirement Plan (posted 12/14/12)  The only change is the addition of question 25 (next to last question). This will be of interest to those who have variations in service, sometimes working full-time and sometimes working part-time.