SEBAC ALTERNATE RETIREMENT PROGRAM GRIEVANCE (SAG) AWARD INFORMATION

SAG Award Information Sessions

A message from the Office of the State Comptroller's Office

The Retirement Services Division of the Office of the State Comptroller (OSC) is in the process of completing a closing agreement with the IRS to permit eligible members at Higher Education Institutions a last chance opportunity to participate in the SAG Award. The SAG Award provides eligible active and terminated participants in the Alternate Retirement Program (ARP) a one-time irrevocable opportunity to elect to transfer to the State Employees Retirement System (SERS) Tier II or Tier IIA plan (based on hire date) or to remain an ARP member. There will be a 90-day window to make this final decision and the State is anticipating to begin September 14, 2018 and close on December 14, 2018. The full implementation date is targeted for January 18, 2019.

The Retirement Service Division conducted General Information Sessions to discuss the implementation of the transfer opportunity created by the SAG Award. Please note that the sessions were only open to CURRENT ARP Members employed at Higher Education Institutions and meet the following criteria: 1) Actively employed and participating in the ARP on 9/22/2010 AND 2) still active in the ARP. Current members of SERS or Hybrid are not eligible. Eligible SAG participants may view a recorded session from the link provided on this page.

For more information, please see the Office of the State Comptroller’s SAG/Hybrid website.

For inquiries regarding your current Alternate Retirement Program (ARP) account balance please visit Prudential.

TO ELECT A ONE-TIME IRREVOCABLE OPTION TO TRANSFER FROM ARP TO SERS
To assist with your decision, the Office of the State Comptroller mailed a preliminary estimate of cost to purchase your prior service credit in the ARP as retirement credit in SERS.

If you are interested in purchasing a different amount of ARP service than indicated on your preliminary estimate provided by OSC , you will need to use the online SAG and Hybrid Calculators. These tools were designed to help you decide if switching retirement plans is the right decision for you. This is only an estimate; actual cost is subject to a final audit and will be determined by the Comptroller.

Transfer Eligibility: ARP to Hybrid
An opportunity to transfer to the Hybrid plan is available to actively employed participants of the ARP who made contributions on any day between January 1, 2009 to July 1, 2012.If hired prior to July 1, 2011, the SERS Tier II or SERS Tier IIA rules apply.If hired after July 1, 2011, the SERS Tier III rules apply.The transfer window is currently open, and will continue through December 14, 2018.Transfer Eligibility: ARP to SERS Tier II/IIA.
An opportunity to transfer to SERS Tier II or SERS Tier IIA is available to employees who were actively employed, participants of ARP and made ARP contributions on September 22, 2010. The transfer window is currently open, and will continue through December 14, 2018.

A pension estimating tool is available.

  • The Tier II calculator should be used for employees hired prior to 7/1/1997.
  • The Tier IIA calculator should be used for employees hired 7/1/1997 through 6/30/2011.

Note: For employees hired 7/1/2011 through 6/30/2012, they will have an underlying Tier III pension benefit, for which there is no online estimating tool. Employees can use the Tier IIA estimator from above, and do the following:

  • for Average Salary, project the average of 5 highest years of earnings
  • under Grandfathered Normal Retirement Age pulldown menu, select No
  • use a retirement date after the first of the month following age 58

Complete the CO-994a form as follows:

  1. Complete Part I in its entirety
  2. Complete Part II in its entirety
  3. Check off “Remaining in ARP” in Part III, but Do NOT sign in Part III
  4. Enter full name on top of 2nd page
  5. Do NOT complete Part IV
  6. Do NOT complete Part V
  7. Sign and date in Part VI
  8. Do NOT complete Part VII

Make a copy of the completed CO-994a for your records.

Return the original completed CO-994a to Human Resources in one of the following ways before 12/14/2018:

  • Inter-office mail to U5075; or
  • Hand deliver to Human Resources (Allyn Brown Building, Depot Campus)
  • Attend a sign-up session. Sign-up sessions are being offered every Tuesday afternoon from 3:00 pm to 5:00 pm from October 2nd to December 11th, 2018 in the Allyn Brown Building on Depot Campus or the Budds Bldg 2nd Floor. Registration is required as space is limited. Please register at Learning @ Work.
  • Mail via US Mail to:
    University of Connecticut
    Human Resources
    9 Walters Ave.
    Storrs, CT 06269-5075

If you will be purchasing prior service, you must move the monies that you will be using for the purchase from your current investments to an investment fund called the ARP Transition Fund. To do this, complete the applicable form(s) and submit directly to Prudential (fax: 1-866-439-8602 or scan/e-mail: CTARPFund@prudential.com).

ARP Transition Fund Transfer Request (these investments must be used first)

If additional monies are to be used for the purchase:

403(b) Plan ARP Transition Fund Transfer Request

457(b) ARP Transition Fund Transfer Request

Once the change has been made, print out a copy of a current statement of your account showing the required investment in the ARP Transition Fund. You can access your account online at www.ctdcp.com.

If you have questions completing any form(s) or need assistance printing out a copy of your statement, contact a Prudential representative:

Thomas Shepherd: (860) 331-3248
Thomas Grubbs: (860) 256-5775

Complete the CO-994a form as follows:

  • Complete Part I in its entirety
  • Complete Part II in its entirety
  • Complete Part III

Check applicable box (only one should be checked)

      • Transfer = switching plans

    and

      purchasing prior ARP service
      • Prospective = switching plans

    and

      not purchasing prior ARP service

Sign, provide contact number, and date the bottom of Part III

  • Enter full name on top of 2nd page
  • Complete Part IV only if you elected to Transfer to Tier II/IIA or Hybrid in Part III

Check off applicable box (only one should be checked)

If selecting a partial purchase, indicate the number of years and months you are purchasing under the 2nd box

  • Complete Part V

Check off applicable box (only one should be checked)

If electing to use encumbered funds with TIAA, contact TIAA at 800-842-2776 to initiate the transfer of these funds to the ARP Trans tion Fund with Prudential, and also complete a CO-995a

  • Do NOT complete Part VI
  • Do NOT complete Part VII

Make a copy of the completed CO-994a and your current account statement for your records.

Return the following to Human Resources before 12/14/2018 (late forms will NOT be accepted):

  • The original completed CO-994a; and
  • A copy of your current account statement; and
  • The original completed CO-995 (if using encumbered funds in TIAA)

Forms must be returned to Human Resources in one of the following ways:

  • Inter-office mail to U5075; or
  • Hand deliver to Human Resources (Allyn Brown Building, Depot Campus)
  • Mail via US Mail to:
    University of Connecticut
    Human Resources
    9 Walters Ave.
    Storrs, CT 06269-5075

OR
Attend a sign-up session. Sign-up sessions are being offered every Tuesday afternoon from 3:00 pm to 5:00 pm from October 2nd to December 11th, 2018 in the Allyn Brown Building on Depot Campus or the Budds Bldg 2nd Floor. Registration is required as space is limited. Please register at https://hr.uconn.edu/learningatwork/.

Forms must reach Human Resources before 12/14/2018. No exceptions will be permitted.

ARP participants who transfer to SERS and whose Normal Retirement Date is on or after 7/1/2022 will have the opportunity to grandfather the current retirement ages:

Years of Service SERS Current Normal Retirement Age SERS Normal Retirement Age for Retirements Starting 7/1/2022
25 or more 60 63
10 to 25 62 65

Information about grandfathering the current normal retirement age is available from the following links:

Retirement Services Division Memorandum 2013-02A: Revised SEBAC 2011 Option to Retain Grandfathered Retirement Date

Retirement Services Division Memorandum 2013-04: Additional Information on SEBAC 2011 Option to Retain Normal Grandfathered Retirement Date

SEBAC 2011 Option to Retain Grandfathered Normal Retirement Date CO-215: Form used by Hybrid transfers until 9/14/2018, which shows how the cost is determined and the effective date of 7/1/2013

Election Period and Process for Transferees under the SAG/Hybrid Starting 9/14/2018

The Retirement Services Division of the Office of the State Comptroller will hold a special election period for all SAG/Hybrid transferees.

  • The start and end date of the special election period has not yet been determined, but is expected to shortly follow the implementation of transfers.
  • The costs will be in accordance with the information provided above.
  • The effective date is 7/1/13. Employees will have the option to pay for the retroactive contributions using pre-tax retirement savings or future paycheck deductions.