State Employees Retirement System (SERS)
New Employees
State Statutes require each State of Connecticut Employee enroll in a retirement plan. If you are employed in a position statutorily defined as a state teacher or a professional staff member in higher education, you may elect membership in the State Employees Retirement System (SERS) Tier III retirement plan, the SERS Hybrid Plan, the Alternate Retirement Program (ARP), or, if eligible, the Teachers Retirement System (TRS) within 60 days of your employment. This is a one-time, irrevocable election. If you do not make an election within the 60 day period you will automatically become a member of SERS Tier III. No change to an employee’s retirement plan membership is permitted after initial election or following 60 day default. However, if you elect SERS Hybrid Plan or ARP membership and are subsequently employed in a position not eligible for SERS Hybrid Plan or ARP participation, you must be enrolled in SERS Tier III.
Tier III Plan:
This is a defined benefit plan qualified under section 401(a) of the Internal Revenue Code. The employee contribution to this plan is 2% of your salary and contributions are made on a pre- tax basis. Should you meet the requirements for receipt of a retirement benefit under this plan, the benefit you receive will be calculated based on a formula which uses the number of years you participated in the plan and the average of your five highest years’ salary. Under the Tier III plan, retirement credit may be granted for some prior employment service, including military service and municipal employment. Restrictions apply, see the Plan Description
Hybrid Plan:
This is a defined benefit plan with a “cash out” option qualified under section 401(a) of the Internal Revenue Code. The employee contribution to this plan is 5% of your salary and contributions are made on a pre-tax basis. At the time of retirement you will have the option of receiving a retirement benefit calculated based on a formula which uses the number of years you participated in the plan and the average of your five highest years’ salary or in lieu of such benefit a one-time lump sum payment with a five percent employer match and four percent interest. Under the Hybrid Plan, retirement credit may be granted for some prior employment service, including military service and municipal employment. Restrictions apply. See the SERS Hybrid Plan Summary Plan Description for more details.
Alternate Retirement Plan (ARP):
This is a defined contribution plan qualified under section 401(a) of the Internal Revenue Code. An ARP member’s benefit is based upon their contributions to the plan and investment earnings. The employee contribution to the plan is 5% of your salary and is made on a pre-tax basis; the State of Connecticut contributes an amount equal to 8% of your salary. Plan contributions are invested at the direction of the member in investment funds available under the plan. ING is the State’s administrator for ARP. Plan Description State website