Posted 2:07:12 PM. Will these changes have a negative effect on my retirement? 4 See Retirement Services Division Memoranda 2013-10 (Jan. 8, 2013) and 2013-02A (March 20, 2013). If youre going to get a bonus, youve got to stick around with us for a while, said Rep. Jay Case, R-Winsted. Lamont, a Democrat, called it a responsible and fair deal for our unionized state employees. He said it takes into account increased inflation and a state workforce that is bracing for a significant number of retirements by providing competitive wages. Add/Update an Employee's Driver's License. 01. The 35 labor contracts, which were ratified by the various unions last month, include 2.5% general wage increases and step increases retroactive to July 1, 2021. Governor Lamont wants the union vote next November, and he will doeverything in his power to get it at the expense of everyone else in Connecticut.. These retirees currently contribute to the cost of their insurance (as well as coverage for enrolled dependents) at the following rates: from 0% to 1.5% for hazardous duty retirees and retirees with 25 or more years of service; from 1.5% to 3% for all others. Governor Lamont justified these bonuses as a means to retain workers, House Minority Leader Vincent J. Candelora, R-North Branford, said. More than 30 state employee bargaining units have ratified contracts that would provide more than 40,000 workers with $3,500 in bonuses by July, along with three years of raises, the State Employees Bargaining Agent Coalition announced Friday. Each employee should also give consideration to how long he or she wants to continue working; how he or she wants to spend the next few years; where the employee wants to live; what other obligations he or she has; and whether he or she will have additional sources of income in retirement. Changes to state employee retirement benefits will go into effect in July of 2022 Ned Lamont says are essential to help stem a surge in state employee retirements, are expected to be ratified Friday by the Senate, where Democrats also hold a majority. State government not only enjoys a $3.1 billion rainy day fund, equal to 15% of annual operating costs the maximum allowed by law but the current fiscal year is on pace to close an unprecedented $4 billion in the black. A Normal Retirement differs from an Early Retirement, because pension amounts under the two types of retirement are calculated in different ways: The amount of the reduction for Early Retirement is a multiple of the number of months between (i) the members date of retirement and (ii) the date on which the member will reach Normal Retirement Age. 5 Likewise, for those members of the Alternate Retirement Program (ARP) that are subject to the rates listed on Appendix A, there will be no change to the Normal Retirement Ages used to determine the applicable rate. This additional premium is known as the Income-Related Monthly Adjustment Amount, or the IRMAA.. Rob Baril, the president of SEIU 1199, in July 2021 arguing that state employees deserve raises. This means Diabetes medications and supplies. 1, 2022.1. That still is being negotiated by the unions and the administration. The table on this page shows the base pay rates for a GS-11 . font size. During that time Connecticut's average pension payment increased 15 percent from $34.589 in 2015 to $39,887 in 2020. Preferred in-network specialists are currently available for ten medical specialties: Your Doctor Might Already Be Preferred. But the Democratic governor also confirmed that workers could accept $2,500 of the $3,500 in bonuses offered under a tentative contract deal and still retire before more stringent pension benefits take effect on July 1. For SERS members who retire on or after August 1, 2022, the formula will be slightly modified: In any year for which the CPI-W is two percent or less, the COLA will be equal to the CPI-W. The payments are made through deductions from the employees retirement benefits (or billed directly to the retiree should they not receive a monthly pension benefit). Your co-pay will remain the same as it is today. Human Resources Job Aids. participating pharmacy. building a betterand more civilConnecticut to live, work, and play. 02. That will be followed by 2.5 percent raises on July 1, 2022 and July 1, 2023. This agreement provides a clear message to our state employees that we value their contributions to our residents while also providing a solid platform from which to recruit the next generation of public servants to our rank, Lamont said. But most House Republicans who spoke in Thursdays debate predicted taxpayers wouldnt be as happy as state employee unions are. The amount of the IRMAA varies, based on an enrollees income over the threshold amount. This deal was billed as a retention effort, said Rep. Laura Devlin, R- Fairfield, who is campaigning for lieutenant governor as the running mate of GOP gubernatorial contender Bob Stefanowski of Madison. ADMIN Home Directory of Divisions. The amount of a given employees premium, and the percentage for which the employee is responsible, will depend on (i) the type of benefit plan the member has selected, (ii) the number of members of the employees household who are covered, and (iii) their retirement status. Republicans also said they appreciate the hard work of state employees, particularly during the worst of the coronavirus pandemic, but the issue isnt as simple as some believe. The agreement announced Friday also includes special lump sum payments of $2,500 for active employees. Thats when more stringent limits on state retirement benefits, negotiated as part of a 2017 concessions deal with unions, take effect. Use the information below as a starting point for determining the best place to go for your health care needs. But Lamont says the public is getting to keep state services that are under extreme pressure. Were hemorrhaging workers right now, DAgostino said. Connecticut State Unemployment Insurance (SUI) As an employer, you're responsible for paying SUI (remember, if you pay your state SUI in full and on time, you get a 90% tax credit on FUTA). However, high-income retirees will receive a reimbursement of only 50% of any IRMAA they are required to pay. 2 This rule applies to all retirees that have satisfied the eligibility requirements to qualify for retiree healthcare and prescription coverage as a benefit, including such members of the Alternate Retirement Program (ARP) and Hybrid Plan members of SERS. The State Employees Bargaining Agent Coalition (SEBAC) called the agreement a vital step in resolving the current staffing crisis facing state government. Behind him to the left is Sal Luciano, president of the state AFL-CIO. The agreement would cost the state nearly $1.9 billion over four fiscal years, according to nonpartisan fiscal analysts. It could be because it is not supported, or that JavaScript is intentionally disabled. The retiree is then transitioned into the states custom group Medicare Advantage Plan, which is known as the MAPD. Employees who are Medicare-eligible at the time of their retirement are enrolled in the MAPD as of their retirement health enrollment date. SUI tax rates range from 1.7% to 6.6%. If, at that time, the employees dependents continue to be covered under the states retiree health plan, deductions will be made to pay for coverage only for those dependents. Because state employees must retire on the first day of a month that occurs after the termination of their employment, all employees who retire on or before July 1, 2022, will have terminated employment before the rules go into effect. This will be paid in the payroll that includes July 1, 2022. Salary Increase Cost of Living Adjustment (COLA) for Certain Non Represented Employees E Item 2664. they will apply to all Connecticut employees whose date of retirement is on or later than August That, in turn, determines (i) whether the members pension will reflect an Early Retirement reduction, and (ii) whether the member will pay an Early Retirement rate (i.e., the rates listed on Appendix A to this memorandum) for retiree health coverage. Please reload the page and try again. If fewer than 15 years of service, use 15. Checklist for Terminating an Employee. You cannot be supportive of state workers and the services they provide without being supportive of the necessary funding to ensure that these positions are properly staffed, SEBAC wrote in a statement following the vote. Article 4.4 Step 1 and/or the Mini-Hearing may be waived by mutual consent of both parties and the Employee Relations Workers get a $2,500 bonus in mid-May, and another $1,000 in mid-July. He has been the state finances reporter at CT Mirror since it launched in 2010. But Republicans said the governors tentative agreements with more than 30 state employee bargaining units are little more than an election-year stunt to buy votes. In other words, the effect of this change to current retirement rules will generally last for only a limited amount of time. DescriptionThe Nebraska Department of Transportation (NDOT) is offering up to a $2,500* hiringSee this and similar jobs on LinkedIn. DX 35 Hour Dentist Pay Plan Effective July 1, 2022. In 2022, Governor Parson implemented a 7.5 percent pay increase for the state workforce. State of Connecticut and the State Employees Bargaining Agent Coalition ("SEBAC") agree to the . You'll pay nothing for medications and supplies used to treat diabetes (Type 1 and Type 2). It also includes fringe costs for each employee (fringe includes health care, retirement benefits and other benefit costs paid by the state on behalf of employees, as well as catch-up payments to pay down unfunded liabilities*). These are not job openings. Copyright 2023 NBCUniversal Media, LLC. State government coffers have swelled since 2018, due in large part to a robust stock market that has bolstered income tax receipts tied to capital gains and other investment earnings. And while some criticized the bonuses, the Hamden lawmaker and others say they would save the state money over the long haul. This means smart health care shopping can help you pay less when you need care. When a retired employee is enrolled in the MAPD, premium charges for his or her coverage under the states retiree health plan will end. Employees who have retired under an Early Retirement pay different percentages for their healthcare coverage. There will be no changes to HEP, including copay amounts for drugs used to treat HEP targeted chronic conditions which include diabetes, asthma or COPD, heart disease/heart failure, hyperlipidemia (high cholesterol) or hypertension (high blood pressure). The agreements, which unions ratified earlier this spring, are retroactive to the start of this fiscal year, which began last July 1. It seems that JavaScript is not working in your browser. The precise effect is impossible to forecast, because it depends on such matters as future rates of inflation, future costs of health insurance and Medicare, and the number of years each employees retirement will last. After this initial fill, you must But most House Republicans who spoke in Thursdays debate predicted taxpayers wouldnt be as happy as state employee unions are. Effective July 1, 2022, State regular and contractual employees will receive a 3% COLA. The state and unions have the option of continuing the same level of raises for the fiscal year beginning July 1, 2024, or they can negotiate different compensation levels. An arbitrator had already awarded some unions a 3% general wage hike for 2021-22 before Lamont and labor negotiators settled on a smaller cost-of-living bump and bonuses. New employers pay 2.8% in 2023. BETWEEN THE STATE OF CONNECTICUT AND THE STATE EMPLOYEES BARGAINING AGENT COALITION (SEBAC). Your donation today will allow us to continue this work on your behalf. Here's how much you will pay for your maintenance and non-maintenance prescriptions: The copays for medications used to treat chronic conditions continue to be: Tier 3 (Non-Preferred brand name): $12.50 copay. They should not affect the retirement planning of most SERS members, including: members who reach Normal Retirement Age before July 1, 2022; and. The first change is a change to the portion of the premium for state-provided health insurance that must be paid (through deductions) by retirees who (i) have taken a Normal Retirement and (ii) are not yet eligible for Medicare. The state had 2,056 workers retire two years ago and 2,656 in 2021. The cost of the current agreement to the state is $1.87 billion but that figure will likely rise as it assumes zero raises in the fourth year. The coalition, which represents most state employee unions excluding the state police, added that, It is a critical step in resolving the current staffing crisis that is the consequence of decades of disinvestment and austerity., Lamont spokeswoman Lora Rae Anderson said, Were happy the House has passed the SEBAC agreement, and we are hopeful the Senate will do the same.. Employees of agencies with access to the Core-CT Benefit Calculator can also use that Calculator. The earliest retirement date for employees who terminate their employment after the rules go into effect will be August 1, 2022. Ned Lamont addresses a campaign union rally in November 2018. mark pazniokas / ctmirror.org. 2023 The Conneticut News Project. An appointing authority may permit a full-time permanent employee in the state service to accumulate vacation days with pay up to a maximum of one hundred twenty vacation days, subject to regulations issued by the commissioner of administrative services. Knowing where to go when you need care can save you time and money. Each of the first three years includes annual general wage increases (GWI) and step increases, so nearly all of the additional pay for the first year will be retroactive. Equally important, the amount the state pays to employees should be only one of several considerations in retirement planning. The Democrat-controlled House voted 96-52 to approve the contracts, after a four-hour debate during which Republicans insisted the compensation far outstrips what private-sector workers are receiving, or what taxpayers can afford. It seems that JavaScript is not working in your browser. House passes raises, bonuses for CT state employees By Keith M. Phaneuf / CTMirror.org Published April 21, 2022 at 5:22 PM EDT The House of Representatives approved a four-year package of raises Thursday that includes $3,500 in bonuses later this spring and summer for about 46,000 unionized state employees. The workers will also receive. But the tentative deals with bargaining units technically dont address hazard pay or special compensation for the pandemic. The $3 billion in budget reserves and $4 billion in projected surplus pales in comparison with the $95.4 billion in long-term unfunded obligations Connecticut has, ODea said, referring to the combined pension, retirement health care and bonded debt the Lamont administration listed last November in its annual Fiscal Accountability Report. And while some criticized the bonuses, the Hamden lawmaker and others say they would save the state money over the long haul. Lamont says the bonuses are crucial to retain state employees, who are retiring in larger-than-normal numbers this spring. It could be because it is not supported, or that JavaScript is intentionally disabled. The contracts, which Gov. State finances also are being supported this fiscal year and next by about $3 billion in emergency federal pandemic relief. "Thank you to my colleagues for finishing this in a timely manner," Sen. Lincoln Hough, R-Springfield, said in a statement. Medicalchain (MTN) Medicalchain uses blockchain technology to securely manage health records. The 35 labor contracts, which were ratified by the various unions last month, include 2.5% general wage increases and step increases retroactive to July 1, 2021. Ned Lamont pitched an income tax cut in CT. Heres an overview of his proposal, Lamont, legislators heading for a battle over CT spending cap, saves the state about $150 million over the next decade. font size, Human Resources Business Rules and Regulations. For more information on HEP, contact Care Management Solutions (CMSI) at 1-877-687-1448 or visit www.cthep.com. I think the governors being somewhat less than candid and frank with the public, Kelly said, adding that workers in the private sector arent enjoying compensation hikes close to those state employees would receive. The list ranges from low-level assistants in agencies such as the Office of Early Childhood and Secretary of the State, to a deputy environmental commissioner and a high-level agricultural scientist making six figures. A pharmacy that participates in the State's State finances also are being supported this fiscal year and next by about $3 billion in emergency federal pandemic relief. Its a way of saying job well done, he added. 2023 HR Calendar. Those packages, collectively, included six fiscal years in which workers forfeited general wage and step increases, though they did receive lump sum payments in two of those six years. This report (1) explains why state officials are anticipating a wave of state employee retirements before July 1, 2022, the date when changes to state employee retirement benefits take effect, and (2) uses historical data to provide an estimate of how many employees may retire before July 1, 2022. There will be no guaranteed minimum for those who. The budget announced by Gov. Some of the features on CT.gov will not function properly with out javascript enabled. I want a salary structure that allows me to recruit the best and brightest, Lamont said during a late afternoon, online press conference. Theres a pro-rated bonus for part-time employees. In 2021, individuals who reported an adjusted gross income for 2019 of $88,000 or more, and couples who reported income of $176,000 or more, were required to pay the IRMAA. Negotiators . will call the 2022 Changes) go into effect as of July 1, 2022 (the Effective Date). And that was before surging state income and business tax receipts pushed this fiscal years surplus from $2.7 billion to $4 billion. Part-time employees will receive a pro-rated payment. Lamont is correct, though, that the states coffers are unusually flush. The State of NJ site may contain optional links, information, services and/or content from other websites operated by third parties that are provided as a convenience, such as Google Translate. These employees are exempt from a change to Normal Retirement Age. Keith is a graduate of and a former journalism instructor at the University of Connecticut. The federal government increased the salaries for general schedule employees by 2.2 percent in 2022. By 2020, the state paid $2.2 billion to 55,348 retirees. More than 40,000 unionized state employees would receive $3,500 each in special bonuses by mid-July . They could be eligible for annual salary increases worth between $4,100 and nearly $11,000. It should also be noted that the SEBAC Agreement requires that these increased deductions be imposed retroactive to the beginning of the current fiscal year (which began July 1). Tier 3 (Non-Preferred brand name): $12.50 copay. 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