The Senate gave final approval Friday to a four-year package of raises for state employees that includes $3,500 in bonuses to help stem a surge in worker retirements. For some members of Tiers II and IIA who retire on or after August 1, 2022, the Normal Retirement Age will change: to 65 for most members, and to 63 for members with 25 or more years of vesting service. Keynesian economics (/ k e n z i n / KAYN-zee-n; sometimes Keynesianism, named after British economist John Maynard Keynes) are the various macroeconomic theories and models of how aggregate demand (total spending in the economy) strongly influences economic output and inflation. These are deeply personal questions, but each employee should be encouraged to consider them. Gov. Coupled with the 2.5% general increase, the overall compensation bump for many workers this year is around 7%. Tier 3 (Non-Preferred brand name): $12.50 copay. Ned Lamont's administration, according to a settlement document obtained by the CT Mirror. The 2022 Changes will affect the cost of retiree health insurance in two different ways. The hourly base pay of a Step 1 GS-11 employee is $26.72 per hour1 . Under a Normal Retirement, the monthly pension payable to a SERS member is calculated under a formula that this document will call the , Under an Early Retirement, the members pension is calculated by (i) applying the Normal Retirement Formula, and then (ii). State of Connecticut and the State Employees Bargaining Agent Coalition ("SEBAC") agree to the . I want a salary structure that allows me to recruit the best and brightest, Lamont said during a late afternoon, online press conference. For employees who retire under a Normal Retirement on or after August 1, 2022, and who are not yet eligible for Medicare, these rates will be: 3% for hazardous duty retirees and 5% for all others. After an enrolled member of the state retiree health plan provides proof of his or her enrollment in Medicare, and after the amount of the retirees Medicare premiums has been verified, the state will reimburse the retiree for the entire amount he or she pays in premiums to Medicareboth the standard premium for Part B and any IRMAA for Parts B and D. In thinking about the 2022 Changes, it is important to keep two dates in mind. You'll continue to pay nothing if you receive care at a Preferred lab! Employees Retirement System (also known as SERS). If fewer than 15 years of service, use 15. And while some criticized the bonuses, the Hamden lawmaker and others say they would save the state money over the long haul. The amount of the IRMAA varies, based on an enrollees income over the threshold amount. Connecticut Gov. 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. For members of Tiers II and IIA, special rules can make this a complex calculation. community-supported public media service, Connecticut Public has relied on donor support for more than 50 years. Under current premium rates, these percentages mean that employees must pay between $0 to $101.14 per month for retiree health insurance. The state had 2,056 workers retire two years ago and 2,656 in 2021. 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). It seems that JavaScript is not working in your browser. Union leaders also said their members granted concessions to help close major state budget deficits in 2009, 2011 and 2017. The agreement announced Friday also includes special lump sum payments of $2,500 for active employees. Article 4.4 Step 1 and/or the Mini-Hearing may be waived by mutual consent of both parties and the Employee Relations 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. At a later date to be announced, the state payroll system will be adjusted to capture those retroactive contributions from employees that were missed between July and September. More than 40,000 unionized state employees would receive $3,500 each in special bonuses by mid-July under tentative contract agreements reached this week with Gov. 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 . It could be because it is not supported, or that JavaScript is intentionally disabled. The details regarding insurance costs are provided below. 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. The first states that COLAs may be awarded only on January 1 or July 1 of each year. Its nothing more than a handout.. The state of Connecticut is in the best financial condition that I can recall, being up here 10 years, said Rep. Michael DAgostino, D-Hamden, who led the debate in favor of the raises. Normal Retirement Age is used to distinguish Normal Retirement from Early Retirement.. The contracts, which Gov. As of this writing, MTN is . State finances also are being supported this fiscal year and next by about $3 billion in emergency federal pandemic relief. State Employees Bargaining . All Rights Reserved. But that surge followed a nearly decade-long stretch in which state tax receipts from the same source badly underperformed. And while some criticized the bonuses, the Hamden lawmaker and others say they would save the state money over the long haul. The SEBAC 2017 Agreement includes important changes to active employee health care benefits and payroll deductions related to both pension and health care benefits. 3 Please note that in order to qualify for an annual SERS COLA, a member must complete at least 10 years of actual state service or transition directly into retirement. they will apply to all Connecticut employees whose date of retirement is on or later than August Compensation Schedules, JULY 15, 2019 (PERS Rate Change) State of Nevada. Prescription Drugs -- New Formulary, New Copays. Were hemorrhaging workers right now, DAgostino said. Madison Republican Bob Stefanowski, who lost the 2018 gubernatorial race to Lamont and is seeking a rematch this year, has called the agreements politics, pure and simple, when they were first reported last month. Health care costs can vary from place to place in Connecticut, as they do in other states. The last one specifically reduced benefits for those who retire after July 1, 2022, which had sparked this years rush of senior workers leaving the state employment. 02. 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. Department of Administration. When does our new contract take effect? During that time Connecticut's average pension payment increased 15 percent from $34.589 in 2015 to $39,887 in 2020. Anniversary Date (AI Date) Change for Certain Non-Represented Employees (E-Item 2271), Changes Anniversary Date from July 1 to January 1 for employees assigned to the MP, MD, SE, DM, CJ & VR, Labor units 02 & 03 pay plans, DAS General Letter 193 - Anniversary Date (AI Date) for Classes Covered by Collective Bargaining, Procedures for establishing anniversary dates for employees covered by collective bargaining agreements, Salary Increase - Cost of Living (COLA) for Certain Non-Represented Employees (E-Item 2090), Authorizes 3% Cost of Living Increase effective July 1, 2014 to employees assigned to the MP, MD, SE, DM, CJ-EX & VR, Labor units 02 & 03 pay plans, Salary Increase - Cost of Living Adjustment (COLA) & Annual Increase (AI) for Associate Attorney Generals (E-Item 2002), Authorizes a 3% Cost of Living Increase and a 3% Annual Increment not to exceed the maximum of the salary grade for Associate Attorney Generals, Salary Increase - Cost of Living Adjustment (COLA) for Certain Non-Represented Employees (E-Item 1935), Authorizes 3% Cost of Living Increase effective July 1, 2013 to employees assigned to the MP, MD, SE, DM, CJ-EX & VR, Labor units 02 & 03 pay plans, Salary Increase - Cost of Living Adjustment (COLA) for Certain Non-Represented Employees (E-Item 1942), Authorizes 3% Cost of Living Increase effective July 1, 2013 to specific titles assigned to the EX pay plan, Salary Increase - Cost of Living Adjustment (COLA) for Certain Non-Represented Employees (E-Item 2091), Authorizes 3% Cost of Living Increase effective July 1, 2014 for certain employees assigned to the EX pay plan, Salary Increase and Pay Plan Adjustments for Certain Non-Represented Employees (E-Item 2147), Authorizes a Certain Percentage salary adjustment based upon most recent pay increase for certain employees assigned to the EX pay plan, adjusts the EX pay plan and effective January 1, 2016 pay increases for EX mirrors MP, Salary Increase Cost of Living Adjustment (COLA) for Certain Non Represented Employees E Item 2664, Authorizes 3.5% Cost of Living Increase effective July 1, 2019 to employees assigned to the MP, MD, SE, DM, CJ-EX & VR, Labor units 02 & 03 pay plans, Salary Increase Cost of Living Adjustment (COLA) for Certain Non-Represented Employees (E-Item 2665), Authorizes 3.5% Cost of Living Adjustment to certain employees who are assigned to Bargaining Unit 01 effective July 1, 2019, This transaction is known as grandfathering. With few exceptions, no employees have been eligible to grandfather after 2013.4. Ned Lamont addresses a campaign union rally in November 2018. mark pazniokas / ctmirror.org. If a member retires on or after August 1, 2022, and if the rate of inflation, as measured by the CPI-W, is higher than 5.5% per year for the first 18 months of the members retirement, then the member will receive two COLAs on the date that is thirty months after retirement. In other words, the 2022 Changes will not apply to any employee who retires on or before July 1, 2022. The bonuses, the GOP argued, are hardly the key to retaining workers, as Lamont has claimed. DAgostino said he believes arbitrators would have awarded unions annual cost-of-living raises of 3% or 3.5% given the state governments enhanced ability to pay. 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. font size. View a list of Connecticut State Departments and Agencies, Constitutional Offices, and more. The tentative deals also call for 2.5% general wage hikes this fiscal year and in each of . The agreement would cost the state nearly $1.9 billion over four fiscal years, according to nonpartisan fiscal analysts. Copyright 2023 NBCUniversal Media, LLC. Although members who retire after the Effective Date must wait longer to receive a first COLA, the impact of this change is potentially softened by another rule. Ned Lamont's administration. State Employment Search Department of Administrative Services Classification and Pay Page 1 of 1 Compensation Plans Find a Listing of State Compensation Plans Look up State Job Classes A database of class specifications used in the State of Connecticut's Executive Branch. Diabetes medications and supplies. State and union officials are expected to meet again in the fourth year to negotiate wages. Behind him to the left is Sal Luciano, president of the state AFL-CIO. Joseph Horvath, the state's chief negotiator, wrote to the union this week, saying its proposals would have cost $2 billion over three years and were "simply are out of touch with the reality of. Fiscal Year End Job Aid for HRMS. All Rights Reserved. The user is on notice that . 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. The agreement would cost the state nearly $1.9 billion over four fiscal years, according to nonpartisan fiscal analysts. Preferred Provider program will be beginning soon. The pay increases will appear in the March 31 paychecks of state workers. Some of the features on CT.gov will not function properly with out javascript enabled. The contracts, which Gov. 4 See Retirement Services Division Memoranda 2013-10 (Jan. 8, 2013) and 2013-02A (March 20, 2013). Please reload the page and try again. Look for future communications with more details. [learn more] Contact the Customer Service Center Retirement Services Division Office of the State Comptroller 165 Capitol Ave Hartford, CT 06106 (860) 702-3480 osc.rsd@ct.gov More state retiree information Note 2: The premium for any given employee will be capped at 25% of the person's actual pension benefit, except that the person's actual benefit will be prorated for employees who are less than full-time. The federal government increased the salaries for general schedule employees by 2.2 percent in 2022. If more than 5 years early, use 5. Your co-pay will remain the same as it is today. Search through millions of guided step-by-step solutions or ask for help from our community of subject experts 24/7 . Benefit Service Date Calculation and Reports. Lamont says the bonuses are crucial to retain state employees, who are retiring in larger-than-normal numbers this spring. Beginning after the July 1, 2022 cut off, the State has relinquished their obligation to adjust pension payments at least 2% (current minimum) for inflation. Retired members of SERS (including Hybrid Plan members) receive annual cost-of-living adjustments (which this document will refer to as COLAs) to their retirement pensions. 03. Currently, the first COLA that a member may receive after his or her retirement is subject to two special rules. Knowing where to go when you need care can save you time and money. Using high-value Anthem and United Healthcare/Oxford providers and facilities - those that offer higher quality care at lower costs - saves money for you and the State. Let us be clear. Negotiators . HEP encourages you to take an active role in your health by getting age appropriate wellness exams and screenings. As discussed above, a SERS member who retires today will not be eligible to receive a COLA until at least nine months have elapsed from the members retirement date. Democratic gubernatorial candidate Ned Lamont stands behind Lori J. Pelletier at a union rally in 2018. Tier 2 (Preferred brand name): $5 copay 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. Connecticut Governor Lamont has proposed to award state employees significant wage increases and bonuses over three years. The workers will also receive. In other words, SERS retirees will no longer be guaranteed an annual COLA of at least two percent in years for which inflation is low. Watch Live at 7:00 PM: The U.S. and the Holocaust, a film by Ken Burns | Screening & Panel Discussion . If a member has fewer than 25 years of vesting service, and if the member retires before age 62 (but after age 55), then the member takes an Early Retirement. Lamont is correct, though, that the states coffers are unusually flush. The agreement calls for 2.5 percent general wage increases and step increases retroactive to July 1, 2022. State finances also are being supported this fiscal year and next by about $3 billion in emergency federal pandemic relief. Let us be clear. The only thing the middle class is getting here is the bill.. The 2022 Changes will also make two changes to the way COLAs are awarded to SERS retirees. font size. The agreement would. Maintenance Drug Network. listeners, viewers, and readers like you who value fact-based journalism and trustworthy information. Keith has spent most of his 31 years as a reporter specializing in state government finances, analyzing such topics as income tax equity, waste in government and the complex funding systems behind Connecticuts transportation and social services networks. Anthem and United Healthcare/Oxford will have a new designation for in-network providers. Since 1997, the State has used a formula to calculate the minimum cost of living adjustment. Because those who retire on or after August 1, 2022, will be reimbursed for only 50% of their IRMAAs, any such enrollee who reported income over the 2022 threshold for the relevant tax year would not be reimbursed for payments ranging from $35.85 to $216.75 per month under current rates. Compensation Schedules, JULY 1, 2019. The Democrat-controlled House voted 96-52 to approve the contracts, following a four-hour debate during which Republicans insisted thecompensation far outstrips what private-sector workers are receiving, or what taxpayers can afford. Since the start of his Administration, Governor Parson has improved state team member pay by more than 21 percent through targeted and across the board pay plans, all in an effort to ensure continuity of state services, combat inflationary wage pressures . Anthem and United Healthcare/Oxford will have a Preferred designation for outpatient lab services and diagnostic imaging (e.g., blood work, urine tests, stool tests, x-rays, Mammograms, MRIs, CT scans) in Connecticut. If you are seeing an in-network provider, it is the provider's responsibility to submit all necessary information during the medical necessity review process. Arms crossed, Rep. Michael D'Agostino, D-Hamden, listens to a question by Rep. Mike France, R-Ledyard, about the SEBAC deal. Ned Lamont defended raises and bonuses Tuesday that could boost state employees pay close to 7% this year, calling them vital to the states ability to recruit talent and preserve services amidst high inflation. SUI tax rates range from 1.7% to 6.6%. You can view a PDF of the 1199 State Employees Contract by clicking HERE. CR 40 Hour Pay Plan Effective July 1, 2022. 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