House Bill No. 6930, Public Act No. 23-182, is a legislative act that revises the Municipal Employees' Retirement System, including the introduction of a deferred retirement option and the development of best practices for municipal retirement plan governance. The bill amends various sections of the general statutes, updating definitions and recalculating retirement allowances for members. It removes the distinction between different types of contributions for calculating retirement allowances and introduces a uniform calculation based on a percentage of the member's average annual pay and aggregate service. The bill also specifies retirement allowances for members not covered by Social Security and redefines how part-time service is considered for eligibility and benefits. Provisions are set for members retiring on or after July 1, 2025, with conditions based on age and years of service.

The bill further amends the cost of living adjustments (COLAs) for retirees, establishing a minimum and maximum increase tied to the consumer price index and varying based on the retirement date. A new formula for calculating the COLA is introduced, with different percentages for retirees based on their retirement date. The bill repeals and replaces Section 7-439d regarding maximum retirement allowance limitations and allows the Retirement Commission to create a deferred retirement option plan (DROP) with specific conditions. Municipalities are required to provide detailed information about their retirement plans to the Comptroller, and a report on best practices for governance structures is to be developed and submitted to the General Assembly. The bill was approved on June 27, 2023.

Statutes affected:
Public Act No. 23-182: 7-425, 7-436, 7-439b, 7-439d, 7-459b