Ned Lamont on Wednesday proposes a wage freeze for state employees in 2022 and 2023, that would save the government an estimated $141.75 million a concession the state employee unions say they are not willing to make. Yesterday marked the second and final day of the arbitration hearing between SEBAC and the State of Connecticut over the amount of pandemic pay due to frontline essential state employees. Check Schedule View the mailing dates for retiree payroll checks for the current year. The federal government adjusts that threshold amount each year. 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. Questions regarding the information provided herein may be sent to the Retirement Services Division by email, at osc.rsd@ct.gov. Any federal employees in Ohio who do not live in an area for which a specific Locality Pay Adjustment has been set will receive the generic "Rest of the United States" locality pay adjustment of 16. But that surge followed a nearly decade-long stretch in which state tax receipts from the same source badly underperformed. The agreement calls for 2.5 percent general wage increases and step increases retroactive to July 1, 2022. Last month, President Biden signed an executive order finalizing the average 2.7% pay raise for federal employees, set to begin with the first full pay period of this year. These are not job openings. "The cost-of-living adjustment for state employees that is included is an incredible step in the right direction. These changes (which this document will call the "2022 Changes") go into effect as of July 1, 2022(the "Effective Date"). But workers collecting $2,500 bonus can still retire this summer. Fiscal Year End Job Aid for HRMS. Lamont acknowledged that step increases would add roughly another 2 percentage points to workers pay, while the bonuses represent a one-time hike of about 3%. 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. These rates can be found in a grid that appears in Attachment C to the SEBAC 2011 agreement. Find a Listing of State Compensation Plans. This will be paid in the payroll that includes July 1, 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. When any Connecticut retiree becomes eligible for coverage under Medicare (either because the retiree has reached age 65, or because he or she has become eligible for Medicare due to SSDI), the enrollee is required to enroll in Medicare Parts A (hospital coverage) and B (doctor and outpatient services). It seems that JavaScript is not working in your browser. Get CT Mirror briefings with enterprise reporting, investigations and more in your inbox daily. Workers get a $2,500 bonus in mid-May, and another $1,000 in mid-July. State Employees Bargaining . As discussed above, Normal Retirement Age determines whether a SERS members retirement counts as a Normal Retirement or as an Early Retirement. font size. But that surge followed a nearly decade-long stretch in which state tax receipts from the same source badly underperformed. Add/Update Employee/Dependent Address. Compensation Schedules, JULY 1, 2019. Equally important, the amount the state pays to employees should be only one of several considerations in retirement planning. This means 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. The state had 2,056 workers retire two years ago and 2,656 in 2021. And that was before surging state income and business tax receipts pushed this fiscal years surplus from $2.7 billion to $4 billion. 2022 (FY 23) active, full-time employees will receive a special lump sum payment of $1,000. Article 4.4 Step 1 and/or the Mini-Hearing may be waived by mutual consent of both parties and the Employee Relations In exchange for doing so, HEP participants qualify for lower monthly premiums, reduced copays and don't pay an in-network deductible. Under current rules, the Normal Retirement Age for members of Tiers II and IIA of SERS is age 62except that it is age 60 for members with 25 or more years of vesting service. However, retirees will still receive a COLA in every year for which there is any measurable inflation. All Rights Reserved. The taxable wage base remains $15,000 for each employee in 2023. The changes to Normal Retirement Age will have an impact only on certain members of Tiers II and IIA. Employees who have retired under a Normal Retirement are responsible for the following portions of their premiums: 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. 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. 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. Part-timers would be eligible for prorated bonuses. The Democratic-controlled Senate voted 22-13 along party lines to approve the contracts, which cover about 46,000 workers the bulk of the state's workforce. When that expires in 2024, the states fiscal position could turn, some lawmakers argue, particularly if the national inflation rate which topped 7% last year and exceeds 8% early in 2022 remains high. "Agreement Between the Torrington Board of Education and the Torrington Education Association." July 1, 2018 - June 30, 2021. If you are in the POS Plan, you'll pay 40% of the cost for out-of-network tests. CR 40 Hour Pay Plan Effective July 1, 2022. 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: 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. However, high-income retirees will receive a reimbursement of only 50% of any IRMAA they are required to pay. More than 40,000 unionized state employees would receive $3,500 each in special bonuses by mid-July . The contracts allow workers to accept the $2,500 extra payment and still retire before July 1. Tier 1 (generic): $0 copay Your donation today will allow us to continue this work on your behalf. The federal government increased the salaries for general schedule employees by 2.2 percent in 2022. Couple that with two years of a coronavirus pandemic and inflation that topped 7% in 2021, and keeping state workers has become challenging, he said. For either Tier, however, members can find out what the reduction will be for any given date of retirement by consulting the Estimator on the website of the Retirement Services Division (the RSD), at https://www.osc.ct.gov/empret/tier2summ/workshop/disclaimer.htm. But even that question requires a different answer for each employee, and some of the information that is needed for each answersuch as the amount of future changes to the cost of living, or how long the members retirement will lastis beyond anyones knowledge. Please note, however, that Normal Retirement Age for Tiers II and IIA will not change for purposes of calculating amounts due for retiree health coverage. 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. 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. It is important to note, however, that these deductions generally end when the employee and his or her spouse become eligible for Medicare. This transaction is known as grandfathering. With few exceptions, no employees have been eligible to grandfather after 2013.4. sebac_website_graphics_8.png. The 2022 Changes will affect the cost of retiree health insurance in two different ways. The SEBAC 2017 Agreement includes important changes to active employee health care benefits and payroll deductions related to both pension and health care benefits. Human Resources Job Aids. Preferred Provider program will be beginning soon. There was an error and we couldn't process your subscription. 2016 CT.gov | Connecticut's Official State Website, regular 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. Governor Lamont justified these bonuses as a means to retain workers, House Minority Leader Vincent J. Candelora, R-North Branford, said. Effective July 1, 2023, State regular and contractual employees will receive a 2% COLA. All three concession packages also increased health care costs for workers, while two of the three tightened pension and retirement health care benefits. State finances also are being supported this fiscal year and next by about $3 billion in emergency federal pandemic relief. In addition, AFSCME Council 3 has secured a $1000 bonus to be paid upon ratification of the agreement in January 2022. The amount of each COLA is calculated under a formula that accounts for a percentage of the national rate of inflation for the 12-month period that precedes the adjustment. 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. . 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*). 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 after the vote. If a grandfathered member of Tier II or IIA chooses to retire after the Effective Date, but after also having reached the new Normal Retirement Age, then the member may receive a refund of the amount he or she paid for the right to grandfather.. Sign it in a few clicks Draw your signature, type it, upload its image, or use your mobile device as a signature pad. Democratic gubernatorial candidate Ned Lamont stands behind Lori J. Pelletier at a union rally in 2018. CT Mirror. He has been the state finances reporter at CT Mirror since it launched in 2010. The agreement would cost the state nearly $1.9 billion over four fiscal years, according to nonpartisan fiscal analysts. Search for state employees by name or agency. Under current rules, the amount of a retirees COLA is calculated under a formula that accounts for a percentage of any increase in the CPI-W for the preceding year, but which guarantees an annual COLA of at least two percent. 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. For us now to be told these workers can receive the bonuses even when they retire demonstrates that the governor either made a bad deal for the taxpayers or misled the public to avoid the critical fallout of this lucrative political deal.. 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 . Health care costs can vary from place to place in Connecticut, as they do in other states. 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. Because COLAs may currently be awarded only on January 1 or July 1 of each year, retiring SERS members must wait between nine and fourteen months for their first COLA. 2023 HR Calendar. 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. Advancing Next Annual Increment Date. The wage contracts, which were tentatively agreed upon in early March and ratified by the various unions this week, include 2.5% general wage increases and step increases retroactive to July 1, 2021. Copyright 2023 NBCUniversal Media, LLC. 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. 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. The contracts, which Gov. Employees who have retired under an Early Retirement pay different percentages for their healthcare coverage. Thats when more stringent limits on state retirement benefits, negotiated as part of a 2017 concessions deal with unions, take effect. 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. Effective July 1, 2022, State regular and contractual employees will receive a 3% COLA. We hope their support inspires you to donate so that we can continue telling stories that inform, educate, and inspire you and your neighbors. This 1% COLA will have the effect of equalizing the annual salary of each grade and step between the STD and ASTD salary scales. In addition, full-time workers would receive a $2,500 bonus in mid-May and an additional $1,000 bonus in mid-July. The ultimate effect of the changes to cost-of-living adjustments cannot be predicted, because it will depend on future rates of inflation. 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. In other words, the effect of this change to current retirement rules will generally last for only a limited amount of time. Its nothing more than a handout.. SUI tax rates range from 1.7% to 6.6%. DY 37.5 Hour Dentist Pay Plan Effective July 1, 2022. She previously worked at WTNH-TV and MyTV9 in New Haven, Connecticut. DM 40 Hour Pay Plan Effective July, 1 2022. Tier 3 (Non-Preferred brand name): $12.50 copay. 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. While Connecticut does not charge Medicare members for the MAPD, the federal government charges a premium for Medicare Part B. Prescription drug costs are rapidly increasing. font size. . The legislature still must consider the agreements, and is expected to act before the regular 2022 session closes on May 4. Thats not always easy.. By Red Jahncke . The pay increases will appear in the March 31 paychecks of state workers. Cole scored 25 points to help No. Additionally, COLAs will no longer be limited to January and July. The workers will also receive. 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. The contracts allow workers to accept the $2,500 extra payment and still retire before July 1. The agreement announced Friday also includes special lump sum payments of $2,500 for active employees whove been on the job since March 31 and $1,000 for those employed as of July 15, 2022. Action Reason Codes. The pay raise amounts. They also cover the next two fiscal years and potentially 2024-25 as well. Please note, however, that grandfathered employees are not exempt from the changes relating to health insurance and COLAs. The contracts, which Gov. Tier 3 (Non-Preferred brand name): $12.50 copay. For more information on HEP, contact Care Management Solutions (CMSI) at 1-877-687-1448 or visit www.cthep.com. The agreements, which unions ratified earlier this spring, are retroactive to the start of this fiscal year, which began last July 1. Corporate Support: Advertising & Sponsorship, saves the state about $150 million over the next decade. The amount of the IRMAA varies, based on an enrollees income over the threshold amount. Some of the features on CT.gov will not function properly with out javascript enabled. Very truly yours, 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. To understand the 2022 Changes, it is necessary to understand both the processes created by the SEBAC agreements and certain basic structures of the states benefits for retirees. 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. As a result of the 2022 Changes, any SERS member who retires after the Effective Date will receive his or her first COLA thirty months after the members date of retirement. 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. In that case, the members pension will be calculated by making an age-based reduction to the amount produced by the Normal Retirement Formula. "Thank you to my colleagues for finishing this in a timely manner," Sen. Lincoln Hough, R-Springfield, said in a statement. But most House Republicans who spoke in Thursdays debate predicted taxpayers wouldnt be as happy as state employee unions are. 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. It seems that JavaScript is not working in your browser. Increase top step bonus by $250 - 32,000 32,000 32,000 . The hourly base pay of a Step 1 GS-11 employee is $26.72 per hour1 . 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. It seems that JavaScript is not working in your browser. 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. 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.. 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. in its annual Fiscal Accountability Report. 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. It is different from the federal program w Normal Retirement Age is used to distinguish Normal Retirement from Early Retirement.. 2022 12:01 am . 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. He has been the state finances reporter at CT Mirror since it launched in 2010. 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. . For the Leave Donation form please click here. This additional premium is known as the Income-Related Monthly Adjustment Amount, or the IRMAA.. Lamont says the bonuses are crucial to retain state employees, who are retiring in larger-than-normal numbers this spring. Share your form with others Send ct form uc 1np via email, link, or fax. 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. It is possible to consider them in purely monetary terms: At the end of my retirement, will I have received more money from the state if I choose to retire before the changes go into effect? 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. 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. MTN is up by over 43% year-to-date, bringing its 90-day gain to over 3%. More than 3,400 state employees have either retired or filed their written intentions to do so between January and March 31 alone, and that total is expected to grow considerably between now and July 1. The percentages cited above are percentages of employees insurance premiums, The effect of this change on any given retiree is. BETWEEN THE STATE OF CONNECTICUT AND THE STATE EMPLOYEES BARGAINING AGENT COALITION (SEBAC). Checklist for Terminating an Employee. Since 1997, the State has used a formula to calculate the minimum cost of living adjustment. 4 See Retirement Services Division Memoranda 2013-10 (Jan. 8, 2013) and 2013-02A (March 20, 2013). Increased the salaries for general Schedule employees by 2.2 percent in 2022 Retirement Early. Will no longer be limited to January and July rates of inflation each in special by... A $ 1000 bonus to be paid upon ratification of the cost for out-of-network tests surge followed a nearly stretch... Is $ 26.72 per hour1 ) active, full-time workers would receive $ each! 2022 session closes on may 4 part B in mid-May, and is expected to act before regular. Quot ; the cost-of-living adjustment for state employees would receive $ 3,500 each in special bonuses by mid-July from to! More in your browser employee is $ 26.72 per hour1 # x27 ; ll pay 40 of. For Medicare part B Retirement or as an Early Retirement pay different percentages their... 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