Lamont a couple of weeks ago said he would prefer a general pay raise be postponed and that state employees on the front lines of the pandemic should receive hazard pay. How will state and local budgets be affected by fewer federal resources? Opinion: Gov. 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. You must be fully vaccinated with the primary series of an accepted COVID-19 vaccine to travel to the United States by plane. This memorandum will help you explain the 2022 Changes to employees who are planning their retirement by clarifying the following key facts: 1. Each of the 3.6 million residents in Connecticut rely on the critical public services state workers provide whether you are standing in line at the DMV, attending a technical school, community college or state university, getting treatment at UConn Health, driving on our roads and bridges, enjoying a state park or beach, or any of the other ubiquitous public services you will be uplifted by these fair and honorable contracts, the State Employees Bargaining Agent Coalition wrote in a statement after the Senate vote. The full legislature is expected to vote on the tentative wage agreements before the regular 2022 General Assembly session closes on May 4. How will schools be implementing to curriculum requirements? Besides, all three of these difficult and only marginally helpful alternatives share one huge liability: The SEBAC unions will fight them tooth and nail, because all three reduce the number of unionized state employees paying dues to the union. Tennessee Code Annotated, 8-36-801 dictates the COLA award. Republicans countered Friday that the raises and bonuses far outstrip what households in the private sector are receiving. FY 2022 Financial Results At or Above High End of Guidance with Practice Collections Growth of 49.1% compared to FY 2021; New Market Entries announced in Connecticut, Delaware, No For more information, see Requirement for Proof of COVID-19 Vaccination for Air Passengers. The one thing we know about Ned Lamont or any Democrat, for that matter is that he will not fight the unions. They arent in psych hospital beds. Your donation today will allow us to continue this work on your behalf. The year over year increases drive up the amount paid out by Connecticuts severely underfunded State Employee Retirement System. One source is a pension, another is Social Security, and the last depends on how much you have invested in retirement funds. Rob Baril, the president of SEIU 1199, in July 2021 arguing that state employees deserve raises. Therefore, if you are retiring before age 65 and after the July cutoff, then you will be subject to increased premiums. Most state employees would get a $4,500 raise in the first year of the budget. The workers will also receive additional 2.5% general wage increases and step increases beginning July 1 and July 1, 2023. As we go into a time period where we expect a significant number of retirements, we want to make sure that we can attract and retain top talent across all of our agencies whether in management or non-management positions, McCaw said. $3.1 billion rainy day fund$3.95 billion in black ink this fiscal yearA grand total of slightly more than $7 billion. Get CT Mirror briefings with enterprise reporting, investigations and more in your inbox daily. Privacy Policy. As many as 13,000 state employees will be eligible for retirement by July 2022, according to the state Comptroller's office. They would then get the same increase on July 1, 2022 and again on July 1, 2023. 2022 or later, the State will split the extra cost the feds charge to wealthier retirees. The tentative contract, which also delivers a 10.9% raise to most of the workers, is the first full state contract agreement of this year. The deal, which covers 46,000 state employees, comes as the state is losing workers to the private sector and as the state anticipates thousands of state worker retirements before July 1 when benefit changes kick in per a 2017 agreement with state workers. Administrators will have discretion in how such raises are implemented. BCG documented that the sclerotic state bureaucracy takes an average of 33 weeks to hire a new employee. Brief summary of Connecticut state income tax: subject to 0.5% Paid Family and Medical Leave. Since 1997, the State has used a formula to calculate the minimum cost of living adjustment. That would not be connected to the 5.38 percent figure and the $15 minimum wage in the 2022-23 state budget. Gov. State and union officials are expected to meet again in the fourth year to negotiate wages. It also describes steps the state is taking to . However, those who retire after the July 1st cutoff could be negatively impacted as they could experience cost of living adjustments below 2%. 5 This portion of the plan is not going to change, although there is an additional premium for Medicare Parts B and D that we should discuss. The year over year increases drive up the amount paid out by Connecticut's severely underfunded State Employee Retirement System. The raises do not apply to employees in the legislative and judicial branches or higher education. Thirty percent intend to leave the state upon retirement. CT DOT faces criticism following overnight tree-cutting, Haar: Payouts at fading CT trash agency offer lessons in a crisis, State nursing homes could face fine due to too many empty beds, CT legislators revive debate over firefighters' cancer benefits. Gov. will call the "2022 Changes") go into effect as of July 1, 2022(the "Effective Date"). The 2002 Changes will increase the amount deducted from the retirement benefits of certain employees to pay for state-provided retiree health insurance. Although, if you are near age 65 then it would be potentially wise to wait until after you turn 65 to retire. Thn 5, x hong tn,th x qung yn, tnh qung ninh. CONNECTICUT University of Connecticut men's basketball head coach Dan Hurley topped the list of highest-compensated state employees in 2021 with $3.6 million in total compensation. 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. Lamonts administration predicted in May that the current fiscal year would have a $2.3 billion shortfall. How many hours straight can you legally work? If the number of months before normal retirement age is larger than 36, then your benefit would be reduced by 5/12 of one percent for all additional months. 2023 The Conneticut News Project. The alternatives are suboptimal. Ned Lamont contracted with the Boston Consulting Group for a report of how to increase state government efficiency. There is ample evidence that this is a fair contract, a reasonable contract, an affordable contract, she said of Connecticuts wage hikes. Greenwich resident Red Jahncke is president of The Townsend Group International, a business consultancy in Connecticut, and a freelance columnist published in national and Connecticut newspapers. There is also a large group if tier 1s who receive 3% guaranteed, no inflation adjustments. By, Corporate Support: Advertising & Sponsorship, See stories by Keith M. 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Budget panel endorses raises, bonuses for CT state workers Full legislature expected to vote before May 4 by Keith M. Phaneuf April 18, 2022 @ 1:08 pm Rob Baril, the president of SEIU 1199,. The Tennessee General Assembly has passed the FY2021/2022 state budget, including funding for state employee performance raises, bonuses, benefit increases, and various salary adjustments. Ned Lamont is negotiating a new wage contract with the State Employees Bargaining Alliance Coalition. Labor agreed to a 2.5% cost of living increase only because lump sum bonuses were offered, he said. The House, where Democrats also hold a majority, approved the package 96-52 on Thursday. By the latest estimates of the comptroller's office, 14,764 state employees a quarter of the workforce will be eligible to retire on July 1, 2022, when a concession deal negotiated in . Increased costs . 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. So, it is a safe bet that Lamont will sign a juicy new wage contract with SEBAC. . Thats because state governments coffers are flush with cash as never before. If eligible, your pension benefit will continue to grow, and youll have more money to put into one of the state benefits plans such as the 403b or 457 plans. The state usually experiences 2,000 to 2,500 annual state employee retirements, according to the CT Mirror. The Tennessee General Assembly has passed the FY2021/2022 state budget, including funding for state employee performance raises, bonuses, benefit increases, and various salary adjustments. "To my knowledge, university employees are not included in the pay raises for state workers," she said. When the CPI-W rises above 2 percent, those retirees will receive either 2 percent or a percentage of the rate of inflation, depending on how high the rate rises. Consistently, studies show that the compensation of Connecticut state employees exceeds average private sector compensation by one of the highest margins of the 50 states. Ned Lamont administration to attract more people to stay and move into these jobs, and to make their salaries more in line with unionized workers. Fire pit tables provide heat and a place to set down food and drinks, making them great for outdoor entertaining. (The state's minimum wage is $11.15 an hour.) Therefore, the first thing you should do is sit down and figure out a monthly budget that will allow you to live the lifestyle you want to live in retirement. The state has a windfall of $1 billion from recent sales tax collections due to inflation, boosting the surplus to nearly $4 billion. More than 3,400 state employees have retired or have filed written intention to retire this year, but that number is expected to increase before July 1. Our economy has grown at one of the slowest rates in the nation for the past decade, and we are getting outpaced year after year. 44 crash, Over 100 animals rescued, 7 found dead on Conn. farm, Bloomfield police follow footprints to shooting suspect, Avon police warning homeowners after string of burglaries, Old Saybrook family grateful for Rare Disease Day, National charter school org honors late Rep. Williams, Eyedrops infected Conn. nursing home patients, Unofficial special election results for CT House, Milford school brings galaxy to classroom with planetarium, Mohegan Tribe opposes current CT river renaming bill, Do Not Sell or Share My Personal Information. CT Mirror. Connecticut Property Taxes In Every Town: Who Pays The Most? Ned Lamont previously touted. Each year of the package includes a 2.5% general wage increase, as well as a step hike for all but the most senior workers. CONNECTICUT The state Senate gave final approval to the raise and bonus package for state employees. If you worked in CT and then decided to retire elsewhere, then the number of plans you can choose from will be more limited. Fiscal conservatives and other critics of the deal were equally passionate, arguing it far exceeded the pay hikes being granted in the private sector and also would hamstring state finances for decades. Keith is a graduate of and a former journalism instructor at the University of Connecticut. How are my health insurance premiums changing? Connecticut Property Taxes In Every Town: Who Pays The Most? Without an adjustment, inflation would lower the utility of the payment and you would not be able to buy as much as before. The raise includes a 3.5 percent pay increase and a two percent annual step increase. Thats when more stringent limits on state retirement benefits, negotiated as part of a 2017 concessions deal with unions, take effect. HARTFORD Connecticut Republicans questioned bonuses of $3,500 for some state employees Thursday in a pay-increase package that requires legislative approval in the coming two months. Compare that, she suggested, with the many in need of rely on state services currently at risk by shrinking staff levels. Now is the time to honor state employees sacrifices over the years, said Emily Bjornberg, a senior consultant with the state Office of Higher Education and vice president of Local 1588 of the American Federation of State, County and Municipal Employees. After July 1, 2022, there is going to be a change to IRMAA that may negatively affect certain individuals. building a betterand more civilConnecticut to live, work, and play. The current procedure allows retirees to be eligible for a cost of living adjustment anywhere between the first 9-15 months with an average of 12 months. Republicans say theyre going to pay for a legal challenge on behalf of the people of Connecticut once the federal circuit court makes a decision. This differs from public transport where the pick-up and drop-off locations are decided by the service provider, not by the customers, although demand . What can be done to lower home heating bills? According to the Bureau of Labor Statistics, between 2015 and 2020 there was only one year 2018 during which the CPI-W for July was above 2 percent. Prefer listening instead of reading? Required fields are marked *. Democrats were united Thursday in approving the agreement while all but one Republican, Rep. Tom Delnicki of South Windsor, opposed the legislation. Connecticut holds $3.1 billion in its rainy day fund, equal to 15% of annual operating costs the maximum allowed by law. Lamont joined others to announce the deployment FEMAs new COVID-19 mobile vaccination unit, which is set up and running this week in the zoos parking lot. The managers who will receive the raises include division heads at state agencies, as well as commissioners and. Retired teachers and state employees who have been on the TCRS retired payroll for at least 12 consecutive months as of July 1, 2022, will receive a 3-percent cost-of-living adjustment, the highest increase available under laws governing TCRS. Julia Bergman is a reporter with Hearst Connecticut Media Group. Many ancient pipes in CT aren't up to the task of draining storm water, yet officials just seem to shrug. Both of which will have a negative impact on those who retire after June 30, 2022. will there be snow in february 2022; advantages and disadvantages of coreldraw; wayne fontana funeral; best portable socket organizer; panchang tomorrow 2021; is philips a fortune 100 company. Josh Geballe, the states chief operating officer and commissioner of the Department of Administrative Services, said state agency heads have found it difficult to promote top performers in their departments because the employees would either have to take a pay cut or worry they wont be afforded the same prospective increases as those in bargaining units. Retired state employees and retired teachers. We promise to never sell your information or overload you with emails. Alabama Gov. The adjustment is designed to make the money received have the same purchasing power regardless of the inflation level. Consider scheduling an appointment here. If inflation were 1% Then the absolute COLA would be low, but the burden on the state budget and taxpayers would be growing, because inflation under 2% leads to a real pension burden increase. The legislature . Retirement: Appropriators provided funds sufficient to pay the annual retired contribution amount on the state's retirement plan. 1998 - 2023 Nexstar Media Inc. | All Rights Reserved. In 2015, Connecticut paid $1.7 billion to 49,111 retirees, according to the Comptroller's Open Pension website. The Senate version would spend about $2.2 billion on 5% pay raises in each year for state and state-supported local employees, including teachers, plus $1,000 one-time bonuses. Connecticuts pension COLAs, however, are set for a change one year from now prompting concerns over a potential surge in state employee retirements. We had more people employed in the private sector in 2007 than we do today. The changes will only affect those who retire after July of 2022, but according to the OLR report, historically such changes have resulted in a larger number of employees retiring before the cut-off date. Within Tier 1 there are Plans A, B, and C which are based on your annual salary. A benefit of the plan is that retirees are eligible for a cost of living adjustment every twelve months after that. An example would be the Military Buyback Program that allows qualified veterans with active duty military service time to receive credit for their military service time to be added to their years of civil service. The unions have already ratified the contracts. Ned . Spokesmen for Attorney General Ken . What will our elected officials be working on to improve policy outcomes for Connecticut residents? In the past 10 years, the number of management-level state employees has dropped from 2,000 to 1,400, with nearly all of them choosing to leave their posts to join bargaining units and another 60 petitions currently pending, McCaw said. The budget includes a $500 pay raise for all state employees. Employees retiring before July 1 will receive their current benefits that include a guaranteed minimum 2% cost-of-living increase in their annual pensions, as well as free health care premiums. community-supported public media service, Connecticut Public has relied on donor support for more than 50 years. Wilton Selectwoman Kim Healy called the cost of the raises and bonuses shocking and warned taxpayers wont appreciate these contracts. But Shirley Watson, a unionized clinical social worker for the past eight years at the MacDougall-Walker Correctional Institute in Suffield, noted the relative affluence of many who oppose the raises. With all these different retirement plans, depending on which one you fall under, there are a minimum number of years that you must work to be eligible to qualify. 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. Get CT Mirror emails in your inbox daily. Part-timers would be eligible for prorated bonuses. Polis said the benefits guaranteed in the agreement with Colorado WINS will help "ensure that we can attract great people to our state workforce to do the work of the public for . Republicans who are not at the negotiating table, say the state workers contract is too expensive and instead offered their own tax relief package, which includes an income tax cut the first rate cut since 1995. The tipped wage would rise to $6.75 from $3.75 over the same time period. Rep. Michael France of Ledyard, ranking House Republican on the panel, offered the only comment prior to the vote, saying he thought the package projected to cost $1.9 billion over four fiscal years combined was not sustainable. For employers with 25 or fewer employees the minimum wage will reach $15 per hour by Jan. 1, 2023. . The time to pay the bill is now at hand, Suzio said, warning the proposed contracts would be an anchor weighing down state finances for years to come. Therefore, if you do not qualify for normal retirement then it may not be the best idea to take an early retirement and receive a reduced pension benefit. 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. Dannel Malloy included a provision to change the COLAs for state employees who retire after July 1, 2022. . She noted that West Virginia recently granted state employees a 5% raise, while Arizona bumped pay for its correction officers by 20% and for workers in many other departments by 10%. He could outsource functions, but the state already pays outside providers an enormous amount about $1.4 billion annually to nonprofits. Published April 21, 2022 Updated on April 21, 2022 at 2:04 pm. This way you could avoid paying the recently increased premiums for your insurance. Therefore, it really depends on your situation and if you are unsure or need help then it may be a good idea to get in touch with a financial planner. The largest change is the elimination of the minimum annual Cost of Living Adjustment (COLA) for pension benefits and delaying a retirees first COLA until 30 months after retirement. Connecticut is facing pressure from the private sector, municipalities and other states for its workers, Osten said, adding that the pandemic has made many state jobs less attractive. Livingston said the unions were prepared to seek a general wage increase of 3% or more and that an arbitrator already had approved a 3% bump for the current fiscal year. Connecticut Public Radio | The bonuses, the GOP argued, are hardly the key to retaining workers, as the governor and other Democrats claim. Some Republicans have said the hefty bonuses are only an election-year stunt from Lamont, a Democrat, to shore up his standing with his labor base. RPPC Request for Application 2022; RPPC RFA 2022 Addendum #1; RPPC RFA 2022 Addendum #2; RPPC RFA 2022 Addendum #3; RPPC RFA 2022 Public Notice of Intent to Award; RPPC RFA 2022 Addendum #4; RPPC RFA 2022 Public Notice of Final Award; RPPC RFA 2022 Addendum #5; Sudden Infant Death Syndrome (SIDS) Program. Use Next and Previous buttons to navigate. At issue are raises and bonuses for 35 bargaining units that negotiated tentative contracts earlier this spring with Gov. State prisons have been a petri dish for the spread of COVID-19, added Howard, who contracted the virus in February 2020 and now takes seven medications to manage heart complications brought on by that infection. House Minority Leader Republican Vincent Candelora challenged Lamont. All Rights Reserved. How much money does the state have to spend on programs? Marc has a Master of Fine Arts degree from Western Connecticut State University. So, more outsourcing would compound the squeeze on the nonprofits, either rendering their condition even more precarious or necessitating a significant increase in their reimbursement rates. Employees who retire after that date will get less lucrative retirement benefits. Because the state is facing a massive retirement wave, which, if mishandled, could cripple state government. Are more state employees retiring than usual? It includes continuing the 25-cent cut in the gas tax, a cut in the sales tax, rolling back the trucker tax, and putting in place a $200 property tax cut for all homeowners. Setting your budget for retirement. The managers who will receive the raises include division heads at state agencies, as well as commissioners and deputy commissioners. So why might Lamont do something so patently unfair and so politically toxic as awarding pay raises to already overcompensated state workers while most Connecticut citizens and voters have been and still are hurting very badly? The opportunities to advance students learning are endless. Read our blog post Health Insurance Coverage Before Age 65 to learn more about the various options available and the costs associated. The long session, as non-election years are called in Hartford, will be centered around the biennial budget. Private-sector employees can only dream of having that, said Sen. Henri Martin, R-Bristol. In addition, full-time workers would receive a $2,500 bonus in mid-May and another $1,000 bonus in mid-July. Howard Drescher of Mansfield, whose daughter has struggled throughout her adult life with mental illness, said the nonprofit community agencies that the state relies on to provide most of its social services cant take another fiscal hit. The House bill . Ron DeSantis has been a staunch advocate for police officers and has pushed for bonuses for that group. A cost of living adjustment is a change in ones retirement benefit to account for increasing prices caused by inflation. If the proposal becomes law, it will be the first cost-of-living adjustment for Georgia employees in 14 years, Kemp said. We hope their support inspires you to donate so that we can continue telling stories that inform, educate, and inspire you and your neighbors. If you have a pension through the State of CT then the question you should be thinking is, should I retire before the changes take effect? The negotiated raises were set for mid-April and Cuomo's move drew ample condemnation from New York's public sector unions. Prior to joining CT Mirror Keith was State Capitol bureau chief for The Journal Inquirer of Manchester, a reporter for the Day of New London, and a former contributing writer to The New York Times. HARTFORD, Conn. (WTNH) The state Senate overwhelmingly approved a multi-year labor agreement recently ratified by 46,000 unionized Connecticut state employees. Last March, in a report that received relatively little media coverage, Boston Consulting Group documented that 27 percent of the state workforce is eligible to retire before June 30, 2022, and that about three-quarters lean toward retirement. For some of Connecticuts highest paid pensioners like Jack Blechner, a former UConn Health Center physician who received $342,325.14 in 2020, the COLA amounts to an additional $12,323.70 per year. Marc can be reached at, Connecticut saw a 1,600 decrease in nonfarm industry positions in December, while November private sector gains (3,300) were revised down [], Eviction cases in Hartford and Bridgeport have remained far below historical averages since the Supreme Court overturned the federal eviction []. The deal thats been presented to you is going to radically diminish the General Assembly and this committees discretion over spending for years to come, warned Ken Girardin, Yankees research director, who predicted it would eventually strip funding from social services, municipal aid and the states ability to offer tax cuts to Connecticut households. If you are retired but not yet 65 years old, then you are not (currently) eligible for Medicare. Gov. Tier 1 is a contributory defined benefit retirement plan for those hired on or before July 1, 1984. Therefore, some retirees will experience out of pocket costs that they wouldnt have before. Therefore, the elimination of the minimum cost of living adjustment is something to consider for those who plan to retire after the cutoff. You would will ct state employees get a raise in 2022 be able to buy as much as before United by! An average of 33 weeks to hire a new Employee allow us to continue this work your. 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