Conn. Gen. Stat. § 7-436i: MERS 2.0 retirement benefit tier.

(a) As used in this section:

(1) “Active service” means service with a participating municipality for which contributions are required pursuant to subsection (f) of this section;

(2) “Aggregate service” has the same meaning as provided in section 7-425;

(3) “Average annual pay” means the average annual amount of the regular pay an employee received during the five years of active service in which the employee received the highest amount of regular pay;

(4) “Base pay” means the annual salary, wages or earnings of an employee, not including other pay, payments received pursuant to chapter 568 or payouts for accrued vacation time, sick leave or compensatory time;

(5) “Continuous service” has the same meaning as provided in section 7-425;

(6) “Fund” has the same meaning as provided in section 7-425;

(7) “Member” means a member of the municipal employees retirement plan under this part;

(8) “MERS 2.0” means the set of rules applicable to members who first become eligible for membership on or after the applicable date set forth in subsection (b) of this section;

(9) “Other pay” means overtime pay, bonuses and all other compensation of an employee other than an employee's regular pay;

(10) “Public safety employee” means a uniformed member of a municipality's paid fire department or a regular member of a municipality's paid police department; and

(11) “Regular pay” means the base pay of an employee, plus other predictable ongoing compensation as determined pursuant to regulations adopted in accordance with chapter 54 by the Connecticut Municipal Employees Retirement Commission, provided overtime pay shall not be included as predictable ongoing compensation.

(b) The set of rules set forth under this section shall be known as MERS 2.0, which shall operate as another benefit tier within the municipal employees retirement plan set forth in this part.

(1) Any municipality not participating in the municipal employees retirement system may enroll in MERS 2.0 on any date on or after the later of (A) July 1, 2026, or (B) the date of the expiration of a collective bargaining agreement that was applicable to such municipality and in effect on July 1, 2026. For a municipality that has enrolled in MERS 2.0 pursuant to this subdivision, any member who first becomes eligible for membership in the municipal employees retirement system on any date on or after the date of such enrollment shall be enrolled in MERS 2.0.

(2) For a participating municipality, any member who first becomes eligible for membership in the municipal employees retirement system on any date on or after the later of (A) July 1, 2027, or (B) the date of the expiration of a collective bargaining agreement that was applicable to the member's position and in effect on July 1, 2027, shall be enrolled in MERS 2.0.

(c) The provisions of this part shall apply to MERS 2.0 in the same manner and with the same force and effect as if the provisions of said part had been incorporated in full into this section and had expressly referred to MERS 2.0, unless excepted under this section. Where there is a conflict between a provision of said part and this section, the provisions of this section shall prevail with respect to MERS 2.0.

(d) Any member participating in MERS 2.0 shall be eligible for retirement and, provided such member has had five years of continuous service or fifteen years of active aggregate service in a participating municipality, to receive a retirement allowance upon completing the following:

(1) (A) Thirty years of aggregate service in a participating municipality, or (B) five years of continuous service and upon attaining the age of sixty-five years; and

(2) For members who are public safety employees, (A) twenty-five years of aggregate service in a participating municipality, or (B) five years of continuous service and upon attaining the age of fifty-five years.

(e) Notwithstanding the provisions of subsection (d) of this section, any member of MERS 2.0, other than a public safety employee, who (1) is separated from the service of the municipality by which the member is employed, except for cause, (2) has completed at least five years of continuous service but fewer than thirty years of aggregate service, and (3) has not attained the age of sixty-five years, shall have the option of receiving a retirement allowance at any time on or after attaining the age of fifty-five years, provided the retirement allowance shall be payable in such amount as determined by the Connecticut Municipal Employees Retirement Commission to be the actuarial equivalent of the retirement allowance that would have been payable except for the election of such option. Retirement allowances under subsection (d) of this section shall not be subject to the actuarial reduction under this subsection.

(f) Each member participating in MERS 2.0 shall contribute to the fund five per cent of such member's regular pay, except that each member who is a public safety employee shall contribute to the fund eight per cent of such member's regular pay.

(g) (1) Except as provided in subsection (e) of this section, after retirement, in accordance with the provisions of this section, each member participating in MERS 2.0 shall receive, during such member's lifetime, a retirement allowance payable in monthly installments equal to one-twelfth of one and eight-tenths per cent of the member's average annual pay or, for members who are public safety employees, one-twelfth of two and two-tenths per cent of such employee's average annual pay, multiplied by the number of months of such member's aggregate service.

(2) For the purpose of calculating a member's average annual pay, the member's regular pay for a year in which such member held more than one position or in which the regular pay for such member's position changed shall be the sum of the regular pay for all positions held by the member during such year, except that the regular pay for each position shall be multiplied by the fraction of one year for which the member held such position.

(h) The provisions of the following sections shall apply to members participating in MERS 2.0, as applicable: (1) Section 7-432 concerning disability retirement allowances; (2) section 7-433b concerning survivors' benefits for firemen and policemen; (3) subsections (b) to (d), inclusive, of section 7-439g concerning preretirement death benefits; and (4) subsection (a) and subparagraph (G) of subdivision (1) of subsection (b) of section 7-439b concerning cost of living adjustments.