ThanKs Vin, Lyle Scruggs 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. The announcement Thursday from the governors office of the 7.5% raises comes as union workers ramp up their fight for wage increases in their new contracts, which they are currently negotiating with the state. Here are five things to know about the deal: Employees covered by the State Employees Bargaining Agent Coalition would get a 2.5 percent wage increase and step increases retroactive to July 1, 2021. So, it is a safe bet that Lamont will sign a juicy new wage contract with SEBAC. It also created a hybrid 401k-style/pension plan for new state employees that is far less generous than the plan for current employees at the time. Efficiency is easier in concept than in actual practice. Critics particularly have attacked the bonuses, noting that workers could accept the $2,500 extra payment and still retire before July 1. Governor, show some courage, join hands with the Republicans so we can get a budget that helps the entire state of Connecticut, not just a few, Candelora said. 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. 4 Things to Know Before Doing a 401(k) Rollover with Raytheon (RTX), 8 Things to Know Before Buying a Second Home in Retirement, Morrissey Wealth Management LLC, 116 Washington Avenue, North Haven, CT, 06473, United States, 2 Upcoming Changes for CT State Employees Pensions in 2022, Avoid Overpaying for Medicare in 2021 and Beyond, Properly Estimating Retirement Cash Flows, A Retirement Income Planning Strategy That Works. 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? Employees who retire after that date will get less lucrative retirement benefits. "It has been an incredibly challenging [&hellip. Please reload the page and try again. After July 1, 2022, there is going to be a change to IRMAA that may negatively affect certain individuals. A taxicab conveys passengers between locations of their choice. They arent in residential group homes. The Insurance Department, which has 25 fraud investigators, will run its $245,000 of pay-raise money through Schedule C, spokeswoman Stephanie Goodman confirmed. The opportunities to advance students learning are endless. DARRELL HACKETT The one thing we know about Ned Lamont or any Democrat, for that matter is that he will not fight the unions. They are our people, who we count on each day to make us safe, she said. Without an adjustment, inflation would lower the utility of the payment and you would not be able to buy as much as before. Going forward, these employees will be entitled to receive wage and benefit provisions that their union counterparts will receive, per language the governors office included in the 837-page budget implementer bill passed this legislative session, McCaw said. Part-timers would be eligible for prorated bonuses. By 2020, the state paid $2.2 billion to 55,348 retirees. While unions and Lamont argue the raises and bonuses will help stem a surge in state employee retirements, Drescher isnt buying it. Increased costs . 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, State Employees Bargaining Agent Coalition, Proudly powered by Newspack by Automattic. CT Saw Jobs Lost in December, Revised Private Sector Gains from 3,300 to 300, Evictions remain significantly down in Bridgeport, Hartford after end of eviction moratorium, New Voting Bills Would Allow Ranked Choice System; Prisoners and 16-year-olds to Vote; Expansion of Early Voting, The Problems with Ranked Choice Voting Proposals in CT, The Federalist: Connecticut Lawmakers Move To Block Parents From Seeing Teacher-Student Communications, Punishing the Good Guys because there are Bad People, Public Sector Job Growth Beats Out Private Sector In July, CTs Growing Problem: Population Trends in the Constitution State, Connecticut Has One of the Highest Tax Burdens (Again). Gross wages.The median household income is $80,958 (2022). For those retirees, there are insurance premiums that must be paid out of pocket. 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. Republicans say 18 states, including two run by Democratic governors, are suing the Biden administration to get rid of the cap, and Connecticuts refusal to do the same is not fair. CONNECTICUT The state Senate gave final approval to the raise and bonus package for state employees. For retirees who receive their COLAs in January, the trend was more in their favor with three years of inflation increases topping 2 percent. All Rights Reserved. You can listen to my podcast Avoid Overpaying for Medicare in 2021 and Beyond to get a more detailed explanation of IRMAA and strategies to potentially avoid it. 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%. If you are concerned about the effects of these changes then you should begin to look at your financial standing and evaluate if you are in a position to retire before July 1st. Most plans require at least 25 years of service with the State. That includes Gov. (Sorry for the caps, wont let me shift), Hope McKiernan Thn 5, x hong tn,th x qung yn, tnh qung ninh. 5 Stateline Story December 21, 2021. Connecticut holds $3.1 billion in its rainy day fund, equal to 15% of annual operating costs the maximum allowed by law. The best long-run thing for the state pension system is to have inflation just at or above 2%. Morrissey Wealth Management will never sell your information. Lamont Nominates Bryan Cafferelli As Consumer Protection Commissioner, CT Native, 27, Killed In Apparent Terrorist Attack In Israel: CT News, Wild 2-Car Shootout Involving Teens Locks Down Schools: PD: CT News, 3 Brentwood HS Students Make PBS '20 Under 20' List Of Storytellers, Brothers Kill Groom On Wedding Night: Authorities, Carjackers Steal More Cars Many With Kids Still Inside, Naperville Family Opens Home, Hearts To Welcome Kids Who Lost Parents, Dog Abandoned With Handwritten Note 'A Good Boy,' Loves To Hug & Kiss. If you are retired but not yet 65 years old, then you are not (currently) eligible for Medicare. Wilton Selectwoman Kim Healy called the cost of the raises and bonuses shocking and warned taxpayers wont appreciate these contracts. It is important to 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. Each year includes a 2.5% general wage increase, as well as a step hike for all but the most senior workers. The 2002 Changes will increase the amount deducted from the retirement benefits of certain employees to pay for state-provided retiree health insurance. How many hours straight can you legally work? According to state employee union documents, Lamont is proposing to award all unionized state employees three annual base salary increases of 2.5% and, for about two-thirds of employees, annual "step increases" of 2.0%. 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 unveiled a broad tax relief package most of it is temporary and paid for with the windfall. While the bonuses weren't expected until early 2022, they are now expected to be paid before the end of December, Menghini said, with raises coming next year, once the University receives further guidance from the UNC System . Gov. Labor agreed to a 2.5% cost of living increase only because lump sum bonuses were offered, he said. Retirees that qualify for Medicare are currently reimbursed for the full standard Medicare Part B premium by the State. Please stop trying to buy votes from the state workers and recognise you have much broader responsibilities, James Solberg, a financial services executive from Darien, testified Monday. The new . Democrats were united Thursday in approving the agreement while all but one Republican, Rep. Tom Delnicki of South Windsor, opposed the legislation. A wave of state employee retirements is expected in the coming months, resulting in an "unprecedented" loss of knowledge and skills, some officials say. There was an agreement made in 2017 with the State Employees Bargaining Agent Coalition (SEBAC) that included many changes to state employee retirement benefits. CONNECTICUT The state Senate gave final approval to the raise and bonus package for state employees. Part of the 2017 SEBAC Agreement between the State Employees Bargaining Agent Coalition and Gov. About 1,700 management-level state employees will receive pay raises, an effort by Gov. Good question Hope I cant find the answer either. But Osten said the agreements are essential to maintain a state workforce that is at its smallest size since the 1950s, an argument Lamont has made as well. We had more people employed in the private sector in 2007 than we do today. The four-year deal, which is retroactive to July 1, 2021, builds upon an agreement the state had reached in 2017 with the State Employees Bargaining Agent Coalition (SEBAC). Lamont, who said that in June 2020 when asked about the pay raise to take effect just days later on July 1. It came with a wage freeze from 2016 to 2019 and layoff protection from 2019 to 2021. If you are married, then you can choose between the joint payment options that would either leave your spouse 100% or 50% survivor benefit, or an alternative would be a period certain option. 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. Changes to state employee retirement benefits will go into effect in July of 2022 Therefore, the old procedure would have provided at least two cost of living adjustments in the same time frame. We were trying to get people not to retire well, thats not what this agreement does, said Sen. Craig Miner of Litchfield, ranking GOP senator on the Appropriations Committee. 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. Comment * document.getElementById("comment").setAttribute( "id", "a3e52856316f31f31c1e5f9d43201c8c" );document.getElementById("h4d5fc382f").setAttribute( "id", "comment" ); 216 Main StreetHartford, CT 06106[emailprotected], 2021 Yankee Institute for Public Policy. Ned Lamont previously touted. Kay Ivey, a Republican, has called for upping state employee and teacher pay by 4%. by Logan, Brown, Hunt, Clemmons. An hourly wage increase. The document would continue $2,000 raises for teachers and $5,000 raises for state employees that will begin in the separate amended 2022 budget in House Bill 910 that won final passage in the . And that total is expected to grow considerably between now and July 1. 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. The unions have already ratified the contracts. 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. 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 material may not be published, broadcast, rewritten, or redistributed. Also that number would be $53,582.00. This means they will apply to all Connecticut employees whose date of retirement is on or later than August 1, 2022.1 The 2022 Changes fall into three different categories: community-supported public media service, Connecticut Public has relied on donor support for more than 50 years. The. Not the fact that Connecticut has had a big contraction in its workforce during the pandemic of about 6 percent and a top 10 unemployment rate, currently exceeding 7 percent, versus a national average nearing 5 percent. HARTFORD, Conn. (WTNH) The state Senate overwhelmingly approved a multi-year labor agreement recently ratified by 46,000 unionized Connecticut state employees. The legislatures Appropriations Committee endorsed significant raises and $3,500 in bonuses Monday for about 46,000 unionized state employees. The agreements are retroactive to the start of this fiscal year, which began July 1, 2021. Hurley. Ned Lamont asking union employees to forgo the raise amid record high unemployment and a growing state budget deficit caused by the coronavirus. Ned Lamont contracted with the Boston Consulting Group for a report of how to increase state government efficiency. Lamont could rehire retired workers as independent contractors, but then he would be paying those fees as well as funding retirement benefits. Andrew Cuomo delayed a 2 percent raise for state employee raises for 90 days. 3 Connecticut . Lamont should instead ask big corporations and the states richest residents to contribute their fair share, according to the Hartford Courant. Osten said the raises reflect the valuable work state employees provide daily, and particularly throughout the coronavirus pandemic. and 75% of the increase above 6%, with a minimum COLA of 2%, and a maximum of 7.5%. Union representatives said that state employees have taken six years of wage freezes over several deals and have taken other financial hits including high prescription drug co-pays. Behind him to the left is Sal Luciano, president of the state AFL-CIO. Though all committees include senators and representatives, legislators must vote separately by chamber on contracts. Ned Lamonts administration. The agreements, which unions ratified earlier this spring, are retroactive to the start of this fiscal year, which began last July 1. Mike Parson, a Republican, has proposed raising pay for state workers to at least $15 an hour. Within Tier 1 there are Plans A, B, and C which are based on your annual salary. Inevitably, it will be highly unpopular, so the announcement will be buried as deeply as possible and spun like a top by Lamonts spokespeople. Whoops! Revenue increased 15.2% to a record of $383.9 million in the fourth quarter of 2022 from $333.1 million in the fourth quarter of 2021; Excluding Revenue from the Artificial Intell Ned . Lamont Nominates Bryan Cafferelli As Consumer Protection Commissioner, CT Native, 27, Killed In Apparent Terrorist Attack In Israel: CT News, Wild 2-Car Shootout Involving Teens Locks Down Schools: PD: CT News, 3 Brentwood HS Students Make PBS '20 Under 20' List Of Storytellers, Brothers Kill Groom On Wedding Night: Authorities, Carjackers Steal More Cars Many With Kids Still Inside, Naperville Family Opens Home, Hearts To Welcome Kids Who Lost Parents, Dog Abandoned With Handwritten Note 'A Good Boy,' Loves To Hug & Kiss. 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. The managers who will receive the raises include division heads at state agencies, as well as commissioners and deputy commissioners. This way they could take advantage of the earlier cost of living adjustment with a minimum cost of living adjustment (2%). (The state's minimum wage is $11.15 an hour.) Why? Connecticut Property Taxes In Every Town: Who Pays The Most? There is also a large group if tier 1s who receive 3% guaranteed, no inflation adjustments. Those who were previously part of Tier 1 and 2, left their job, and then were rehired after July 1, 2011, would also find themselves within the Tier 3 plan. Money Wisdom: Should I Retire in Connecticut? . A benefit of the plan is that retirees are eligible for a cost of living adjustment every twelve months after that. $3.1 billion rainy day fund$3.95 billion in black ink this fiscal yearA grand total of slightly more than $7 billion. A multi-year labor agreement recently ratified by 43,000 unionized Connecticut state employees faced a key vote . "The state has to live within its means just like the families and businesses we serve and represent," Lamont said in a statement when the deal was announced. State Budget passes including significant funding for state employees TSEA April 29, 2021 0. Private-sector employees can only dream of having that, said Sen. Henri Martin, R-Bristol. We promise to never sell your information or overload you with emails. In 2015, Connecticut paid $1.7 billion to 49,111 retirees, according to the Comptroller's Open Pension website. 2023 The Conneticut News Project. 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 McCaw said some of the prior management positions that are now unionized include the assistant attorney general, state police captains and lieutenants, supervisors with the Department of Children and Families, parole managers and deputy wardens. The minimum 2 percent COLA also means that during years in which inflation was low, they still got a boost over the inflation rate. In addition, full-time workers would receive a $2,500 bonus in mid-May and another $1,000 bonus in mid-July. How much money does the state have to spend on programs? 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. There was an error and we couldn't process your subscription. Were losing some of our best and brightest as they seek other parts of the country where its easier to make a living. 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. What can be done to lower home heating bills? . The study also found that Connecticut state employees are compensated 33 percent more than a similar private sector employee when pension, healthcare and other fringe benefits are taken into account. Beshear's first two-year proposed budget in 2020 included his promised $2,000 raise for all full-time public school teachers and a 1 percent salary increase each year for state workers. The Consumer Price Index for Urban Wage Workers and Clerical Workers known as the CPI-W increased 6 percent between July of 2020 and July of 2021, according the Bureau of Labor Statistics, with the price of nearly everything increasing substantially in recent months. Democrats negotiating the $24 billion budget say there is a $180 million cap on tax relief a federal rule in exchange for accepting American Rescue Plan Act (ARPA) dollars. Thirty percent intend to leave the state upon retirement. 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. Division heads at state agencies, as well as commissioners and deputy commissioners pension system is to have inflation at... 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