SEBAC ARP Agreement Information

A Message from Aliza C. Wilder, Director of Human Resources


February 16, 2011

We have been advised by the Office of the State Comptroller that a significant issue has arisen with respect to the administration of the SEBAC ARP Grievance (SAG) award. This award allows a one-time, irrevocable opportunity to switch from the Alternate Retirement Program (ARP) to the State Employees Retirement System (SERS).

As previously communicated, the provisions of the agreement are complex and raise numerous tax related questions.  As a result, private counsel has advised the State Employees Retirement Commission to seek a Private Letter Ruling from the Internal Revenue Service (IRS).  The Private Letter Ruling process is lengthy and could take several years.

The State and SEBAC have agreed to preserve the opportunities provided by the Award and modify the implementation dates so that eligible employees can take advantage of the opportunity, presuming IRS approval.  In the interim, employees will remain in their current retirement plan.  To provide employees with further details, the Office of the Comptroller has issued the following Employee Notification Letter.


January 20, 2011

The Office of Policy Management issued Item No. 1631-E which extends the provisions of the SEBAC ARP Grievance (SAG) award to employees who are not members of any collective bargaining unit on December 1, 2010 and who are enrolled in the Alternate Retirement Plan (ARP) on that date.

The SAG award allows a one-time, irrevocable opportunity to switch from Alternate Retirement Program (ARP) to the State Employees Retirement System (SERS).  As you may be aware the deadline was extended to May 31, 2011 due to the complexities involved with the implementation of the SEBAC ARP Grievance (SAG) award.

The Retirement Services Division of the Office of the State Comptroller has created a website with information on the retirement systems and their differences for affected members.  Please note the Purchase ARP Cost Estimator (PACE), which will allow members to estimate the cost of purchasing prior service, is not yet available. Please also note that this will provide only an estimate; actual cost is subject to audit and will be determined by the Office of the State Comptroller. 

This will be a personal decision for employees based upon individual circumstances; therefore, we encourage you to seek the advice of a financial advisor. Since this decision impacts thousands of employees, individual meetings with Human Resources will not be possible. Information regarding group meetings will be forthcoming when more information is available.

For the latest updates, please visit the Office of Faculty and Staff Labor Relations website.


January 13, 2011

THE 2010 SEBAC ARP GRIEVANCE AWARD (SAG AWARD)

As you may be aware the deadline was extended to May 31, 2011 due to the complexities involved with the implementation of the recent SEBAC ARP Grievance (SAG) award allowing a one-time, irrevocable opportunity to switch from the Alternate Retirement Program (ARP) to the State Employees Retirement System (SERS).

In the meantime the Division has created a website with information on the retirement systems and their differences for affected members.  Please note the following two items:

  • While the website indicates that this agreement is for all current, active members of the Alternate Retirement Program, this has not been extended to non-bargaining unit employees at this time.
  • The Purchase ARP Cost Estimator (PACE), which will allow members to estimate the cost of purchasing prior service, is not yet available. Please note that this will only provide an estimate; actual cost is subject to audit and will be determined by the Office of the State Comptroller.   .

This will be a personal decision for employees based upon individual circumstances; therefore, we encourage you to seek the advice of a financial advisor. Since this decision impacts thousands of employees, individual meetings with Human Resources will not be possible. Information regarding group meetings will be forthcoming when more information is available.

Please continue to check back for updates.