TRB: STRB’s Voluntary Account/Annuity Purchase Change Effective February 13, 2019 Q&A

STRB’s Voluntary Account/Annuity Purchase Change

Effective February 13, 2019

Q&A

 

The Teachers Retirement Board understands you may have questions regarding the administrative change to the voluntary account effective February 13, 2019.   We hope that this Q&A provides additional clarification.

 

Important Notice of Change Regarding the STRB’s Voluntary Account/Annuity Purchase

 

1. Why is this change happening?

Changes were made in order to become compliant to Chapter 167a of the Connecticut General Statutes.

Sec. 10-183b Definitions – 7 “Contributions” are defined as “amounts withheld pursuant to this chapter and paid to the board by an employer from compensation payable to member.”  Voluntary Contributions are included in this subsection and therefore permits such contributions to only be made from payroll deductions on a post-tax basis.

 

2. Why is the effective date on this change February 13, 2019?

This change is a corrective action to comply with the Connecticut General Statutes and had to occur immediately upon approval by the Connecticut Teachers’ Retirement Board.  The approval occurred late in the afternoon of February 13, 2019.  Board of educations were notified the next day to communicate to their members.

 

3. Why weren’t we given any advance notice?

Notice of the change was provided promptly following the change adopted by the Board.  The immediate implementation of the change was important to address any potential future compliance issues.

 

4. What do I need to provide to the TRB to establish the date that the “transfer of funds was initiated”?

The process of transferring or rolling over pre- or post-tax lump sum funds must be evidenced that the action was initiated and in process prior to February 13, 2019.  Documentation to support this may include, but is not limited to:

  • Application to transfer funds from existing vendor submitted by certified mail or fax containing a post mark or date and time stamp clearly indicating the date on or prior to February 13, 2019.
  • Email or written exchanges between or among the teacher, their financial planner/advisor, or existing vendor on or before February 13, 2019 clearly establishing the intent to process such a transfer and in fact the transfer documentation submitted with the vendor in possession of the funds.
  • The funds must arrive at TRB on or before March 15, 2019.                                                                                                                

5. I have the notice that lists four conditions necessary to complete the transfer of funds.  Do I need to satisfy all four conditions?

Yes.  Please submit any supporting documentation to establish the dates of communication and/or written notice by fax to the number above or to TRB.Webmaster@ct.gov in order for the TRB to consider your request and compliance with the four conditions to enable the TRB to accept the funds. Please include your TRB member number in the subject line along with “Voluntary Account – documentation”.

 

6. What happens if I meet all of the four conditions specified in the notice, but my funds cannot be release until I separate from employment?

No separation of duty is required if you are 59 ½ or greater; otherwise we will not be able to accept the funds.  Funds must arrive to TRB on or before March 15, 2019.

 

7. How can I contribute to the Voluntary Account now?

You may only contribute through after-tax payroll deductions, subject to IRS section 415 limits.  Complete the Authorization for Voluntary Deductions Form. Submit a copy to your payroll department.


8. Can I still send a lump sum check or rollover money for the purchase of service?

Yes.



Content Last Modified on 2/22/2019 4:00:16 PM