Substitute House Bill No. 5446 proposes significant enhancements to the disability and retirement benefits for teachers in Connecticut, while also establishing salary and retirement contributions for paraeducators. The bill mandates a study by the chief administrative officer of the teachers' retirement system, in consultation with education association leaders, to explore the feasibility of allowing retired teachers to be reemployed full-time without impacting their pension calculations and to enable retroactive disability benefits for former teachers whose disabling conditions began during their employment. The findings from this study are required to be reported to the General Assembly by January 1, 2027, detailing implementation timelines, costs, necessary resources, and potential barriers.

Additionally, the bill introduces new provisions effective July 1, 2026, which require collective bargaining agreements for paraeducators to establish a minimum annual salary of $45,000. The Office of Policy and Management will provide subsidies to local and regional boards of education to cover the difference between paraeducators' current salaries and the new minimum. Local boards will also be responsible for paying employee contributions to retirement systems for paraeducators, with the state Comptroller covering at least 50% of these costs. The overall fiscal impact of these changes is projected to cost municipalities approximately $57.9 million and the Office of the State Comptroller $18 million annually starting in FY 27, with ongoing costs dependent on the number of paraeducators employed and collective bargaining agreements.