Connecticut Teachers Retirement

Last Updated on March 30, 2023 by George

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The achievement gap between wealthy and disadvantaged students in Connecticut, a state of vast wealth, is a formidable obstacle. The state has proposed improved teaching methods and competitive compensation and benefits for teachers to attract highly qualified educators.

Connecticut provides its teachers with choices from various health insurance plans and retirement funds, safeguarding them now and into the future. Today more than ever, as living costs rise, these benefits are essential for providing financial security for teachers.

The Connecticut Teachers’ Retirement System (CTRS) is Connecticut’s most extensive public retirement system and was established in 1917. It provides a defined benefit (DB) pension plan to educators in that state, as do many other conditions.

Unlike other retirement plans, the value of this pension at retirement is not based on contributions made by the teacher. Instead, a formula based on years of experience and final salary is used to determine it, despite those contributions being invested in the market – often through private equity and hedge funds – with returns that are not directly reflected in an individual’s pension wealth.

Who Qualifies for a Teacher Pension in Connecticut?

Teachers must work for a certain number of years to earn eligibility for their pension, as is the case in most states. For example, Connecticut requires ten years of service before an educator becomes eligible for benefits. The state then determines when teachers can retire with full benefits based on age and years of experience – in Connecticut, newly hired teachers are fully eligible to retire at age 60 after 20 years of credited service or after 35 years of credited service.

Additionally, Connecticut permits early retirement after at least 25 years of teaching experience or at age 55 after 20 years of credited service. However, the benefits associated with this option are reduced due to the early retirement and reduced number of experience.

How Are Teacher Pensions Calculated in Connecticut?

A formula is used to calculate pension wealth for educators in Connecticut. The state determines an educator’s final pay by taking the average of their highest three years of salary, which is then used for calculating a teacher’s pension benefit – typically set at half of their final average salary. For example, a teacher who has worked for 25 years and earns a final average salary of $70,000 would receive a pension worth half that amount each year.

Calculating Teacher Pension Wealth in Connecticut

2% Multiplier  x  Avg. 3 years of highest salary  x  Years of service

Access to Affordable Health Insurance

A teacher’s eligibility for health insurance benefits in Connecticut depends on the school district they are employed. The Office of the State Comptroller also offers these benefits to teachers who work for the state.

Through approved health insurance plans, you may insure eligible dependents, such as a spouse, domestic partner, or children up to age 26. Each project will offer different levels of coverage for the same services.

The list of health services covered for teachers in Connecticut includes:

  • Outpatient Physician Visits
  • Walk-in Centers
  • Urgent-Care Centers
  • Ambulance
  • Substance Abuse Care
  • Hospice Care
  • Emergency Care
  • Prosthetics
  • Eye Exams
  • Prescription Drug Coverage

The three different types of plans available

Point of Enrollment Plan

In the Point of Enrollment plan, you must seek care from in-network providers except in emergencies.

Point of Service Plan

In the Point of Service plan, you can seek care from in-network and out-of-network providers. However, you’ll pay more to seek care from out-of-network providers and have higher co-pays for in-network services.

Point of Enrollment Plan – Gatekeeper

Teachers may obtain care from in-network providers but must get a referral for most specialist care.

If you want more information about your benefits package, contact your school district or the Office of the State Comptroller to discover more options available to public employees.

How Much Does Connecticut’s Teacher Pension Plan Cost?

Teachers and their employers must contribute to the pension system while employed, and the Connecticut legislature sets the annual contribution rates, which can change yearly. In 2018, teachers made a 6% salary contribution to the pension fund, while the state put in 32.04%. The 38.04% total investment return on teacher salaries, with 27.5% of that used toward reducing the pension fund’s debt. However, due to state budget constraints, teachers only receive 4.54 % of their total 6% salary contribution.

Unfortunately, teacher pensions are not portable in Connecticut – unlike most other states – meaning that a teacher who quits or moves across state lines won’t be able to take their benefits with them. As a result, long-term retirement savings may be detrimentally affected if one decides to move or stop teaching altogether.

Therefore, prospective and practicing teachers in Connecticut need to consider how their career goals might interact with the state retirement system and how portability could affect their benefits.

Glossary of Financial Terms

Vesting Interval

The minimum number of years a teacher must work to be qualified for a pension. Although vesting periods vary by state, they typically last five years. Every state allows teachers who leave their positions before they are vested to withdraw their contributions, sometimes with interest. However, only a few conditions permit these workers to receive any employer contributions made on their behalf.

Employee Involvement

The proportion of a teacher’s salary is paid to the pension fund each year.

Contribution by the Employer:

The proportion of a teacher’s annual salary that the state, a school district, or both contribute to the pension fund.

Normal Price

The annual retirement benefit cost is expressed as a proportion of teacher pay, and these costs do not include debt.

Cost of Amortization:

The annual payment made by a pension fund toward any unfunded liabilities. It may also be considered a debt service expense for the pension fund.

Connecticut Teachers Retirement FAQs

Which retirement options are available to Connecticut teachers?

The Connecticut Teachers’ Retirement System (CTRS) for eligible members offers defined benefits and deferred compensation plans. A pension plan with a defined benefit is one in which the retirement benefit is predetermined based on the member’s salary, number of years of service, and age. The Deferred Compensation Plan, a supplement to traditional retirement plans, enables participants to increase their retirement savings.

What is the Connecticut Teachers’ Retirement System’s enrollment process?

Qualified educators should contact their district payroll office or school business manager to start enrollment. Each new member must fill out a form for Retirement System Membership, present legal identification proving their age and citizenship, and make the necessary contributions.

How can I learn more about the Connecticut Teachers’ Retirement System?

The Connecticut Teachers’ Retirement Board’s (CTRB) official website,, has more information. Members are also encouraged to ask any questions they may have of the district payroll office or the business manager of their school.

Using this FAQ instead of consulting a professional is not recommended because its purpose is to provide general information. Please get in touch with your school district, financial advisor, or another qualified professional for specific advice regarding the Connecticut Teachers’ Retirement System.

Final Thought – Connecticut Teachers Retirement


The Connecticut Teachers Retirement plan offers a secure retirement for its teachers who have worked hard to serve the state and its citizens. As an essential part of their future financial planning, Connecticut teachers should understand all aspects of the CT Teachers Retirement Plan and use additional resources such as employer-provided investment options. The key to a secure retirement is early and regular contributions while closely monitoring investments. With careful consideration, Connecticut teachers can look forward to a comfortable retirement with peace of mind.

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