Lamont should instead ask big corporations and the states richest residents to contribute their fair share, according to the Hartford Courant. Alabama Gov. 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. If you dont have enough money coming in, it may be beneficial for you to forgo the cost-of-living adjustment and retire after July 1, 2022. 2:19 pm. 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. We promise to never sell your information or overload you with emails. The agreement would cost the state nearly $1.9 billion over four fiscal years, according to nonpartisan fiscal analysts. Consider scheduling an appointment here. Will ct state employees get a raise in 2022 22 feb 2022 northeast region abbreviations northeast region abbreviations Will ct state employees get a raise in 2022. Therefore, the old procedure would have provided at least two cost of living adjustments in the same time frame. Under the plan approved Tuesday, full-time state workers would receive a raise ranging from 2.3% to 9% depending on their pay grade, with the lowest grades receiving higher raises. With only 41 weeks remaining to replace retiring employees, the Lamont administration is fast approaching a severe manpower crisis. Would this be what he does? BCG documented that the sclerotic state bureaucracy takes an average of 33 weeks to hire a new employee. Ive noticed a lot of the people whove testified against arent in handcuffs, Watson said. Base pay may increase by an average of 3.9% in 2022, the largest one-year projected hike since 2008, according to The Conference Board's latest wage survey of 240 companies, the majority of. Published April 21, 2022 Updated on April 21, 2022 at 2:04 pm. 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 . Marc E. Fitch is the author of several books and novels including Shmexperts: How Power Politics and Ideology are Disguised as Science and Paranormal Nation: Why America Needs Ghosts, UFOs and Bigfoot. 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. The raise includes a 3.5 percent pay increase and a two percent annual step increase. Please reload the page and try again. Local SIDS Coordinators; Risk Reduction . 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. Ned . Compare that, she suggested, with the many in need of rely on state services currently at risk by shrinking staff levels. 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. Currently, those premiums are 1.5% for hazardous duty retirees and 3% for non-hazardous duty retirees. The adjustment is designed to make the money received have the same purchasing power regardless of the inflation level. Use Next and Previous buttons to navigate. A multi-year labor agreement recently ratified by 43,000 unionized Connecticut state employees faced a key vote . If you are single, you can check out the single life annuity (likely the best) or a period certain option. That would not be connected to the 5.38 percent figure and the $15 minimum wage in the 2022-23 state budget. The pay . 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. A benefit of the plan is that retirees are eligible for a cost of living adjustment every twelve months after that. The opportunities to advance students learning are endless. The governor's spending plan would add the $5,000 raises for full-time employees to the 2022 budget and make a permanent $5,000 cost-of-living adjustment in fiscal year 2023, which starts July 1. Massachusetts enacted a measure (HB 4640) to increase the state minimum wage to $15 over five years. Each year includes a 2.5% general wage increase, as well as a step hike for all but the most senior workers. Retirees would get 2% more in pension benefits each year and a 2% cost-of-living adjustment. December 30, 2021 @ If the proposal becomes law, it will be the first cost-of-living adjustment for Georgia employees in 14 years, Kemp said. Collective bargaining units would receive raises according to whatever they have negotiated. Lamonts predecessor, Dannel Malloy, once boasted to a union gathering, I am your servant. Lamont is also in public (union) service, willingly or not. According to the Office of Legislative Research in their analysis of a potential retirement wave, COLAs for new retirees will match the CPI-W during years it is 2 percent or less. Another benefit of continuing to work is that it shortens your retirement horizon putting less pressure on your income in retirement. From there, you can test a few different scenarios in the calculator using higher salaries and/or more years worked. Prefer listening instead of reading? 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. Retired state employees receive a cost-of-living adjustment every year in either January or July depending on the employees retirement date based on the CPI-W for the previous 12 months. Any wage hikes and benefits would come on the heels of big wage increases in 2019 and 2020 under the old wage contract, which expired this past summer. According to the Office of the State Comptroller, as of November 19, 2020, there were 13,066 state employees (full-time and part-time) who are eligible for normal or early retirement before July 1, 2022. Its also imperative that we do so. October 25, 2021 @ You must be fully vaccinated with the primary series of an accepted COVID-19 vaccine to travel to the United States by plane. Some Republicans in the House raised concerns about the bonuses, noting how state workers could still retire even after receiving the bonuses. How will state and local budgets be affected by fewer federal resources? Critics particularly have attacked the bonuses, noting that workers could accept the $2,500 extra payment and still retire before July 1. This way they could take advantage of the earlier cost of living adjustment with a minimum cost of living adjustment (2%). New York government officials confirmed on Thursday that Gov. For more information, see Requirement for Proof of COVID-19 Vaccination for Air Passengers. The managers who will receive the raises include division heads at state agencies, as well as commissioners and deputy commissioners. Many ancient pipes in CT aren't up to the task of draining storm water, yet officials just seem to shrug. The 2002 Changes will increase the amount deducted from the retirement benefits of certain employees to pay for state-provided retiree health insurance. Once that has been inputted, there are a couple different payment options which will depend on if your relationship status. Tier 3 is a contributory plan that includes employees first hired on or after July 1, 2011 except for certain employees in higher education who are eligible to participate in another retirement plan. It also calls for a 0.5% raise for employees with . Spring & Summer at Mt. With that in mind, there are two significant changes to the CT State Employees Pensions that will affect those who retire on or after July 1, 2022. But the votes followed a robust, three-hour public hearing during which state employees argued the raises would help reverse a staffing crisis and also were overdue, given the many concessions unions granted over the past 12 years. 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. House Bill 1047 (Public) Filed Wednesday, May 25, 2022 AN ACT PROVIDING A COST-OF-LIVING ADJUSTMENT FOR RETIREES OF THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM, THE CONSOLIDATED JUDICIAL RETIREMENT SYSTEM, AND THE LEGISLATIVE RETIREMENT SYSTEM; AND APPROPRIATING FUNDS FOR THAT PURPOSE. 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. We had more people employed in the private sector in 2007 than we do today. In addition, the state budget would increase the minimum wage to $15 an hour for those workers. Enter your email to receive a copy of our 7 Step Retirement Guide for Connecticut State Employees! 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. Changes to state employee retirement benefits will go into effect in July of 2022 Increased costs . Photos: Iconic Landmarks To Visit Across CT. Efficiency is easier in concept than in actual practice. UnofficialCaStatePS 2 yr. ago I genuinely wonder if they would do it that way though. Fire pit tables provide heat and a place to set down food and drinks, making them great for outdoor entertaining. Gov. The pandemic is leading many to abandon public service, union members added. Therefore, the elimination of the minimum cost of living adjustment is something to consider for those who plan to retire after the cutoff. Are more state employees retiring than usual? From salaried and hourly paycheck calculators to . Employees not represented by a union will only get a 1 percent raise. Rob Baril, the president of SEIU 1199, in July 2021 arguing that state employees deserve raises. They will also experience decreasing purchasing power throughout their first 30 months of retirement until the first cost of living adjustment. The formula used took 60% of the increase in the Consumer Price Index (CPI-W) up to 6% and then anything above that took 75% of the increase to calculate the COLA. Democrats were united Thursday in approving the agreement while all but one Republican, Rep. Tom Delnicki of South Windsor, opposed the legislation. They are over-extended and fed up, and who could blame them? she said. The difference between Normal Retirement and Early Retirement is the amount paid out to you. Cooper also recommends spending $860 million for pay incentives and raises for the state employees. For employers with 25 or fewer employees the minimum wage will reach $15 per hour by Jan. 1, 2023. . Watch Live at 7:00 PM: The U.S. and the Holocaust, a film by Ken Burns | Screening & Panel Discussion . Whoops! And Lamont reported this week that the current fiscal years budget is projected to close on June 30 with an unprecedented $3.95 billion surplus, equal to nearly 20% of entire General Fund. The Charter provides commonsense reforms to make Connecticuts government work for its residents. Most plans require at least 25 years of service with the State. 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. Ned Lamont asking union employees to forgo the raise amid record high unemployment and a. Ned Lamont in Darien earlier this month. The House, where Democrats also hold a majority, approved the package 96-52 on Thursday. It seems the safest short-term solution is to declare the area off-limits for humans at least for the near-term future, pending additional studies. Julia Bergman is a reporter with Hearst Connecticut Media Group. Travel Requirements for Non-U.S. Citizen, Non-U.S. All Rights Reserved. This proposed contract is a raw deal for the working people of this state, said Sen. Ryan Fazio, R-Greenwich, who noted state workers, on average, would receive more than $10,000 in total added compensation over four years. Retirement: Appropriators provided funds sufficient to pay the annual retired contribution amount on the state's retirement plan. Kay Ivey, a Republican, has called for upping state employee and teacher pay by 4%. The Lamont administration, labor leaders and other supporters of the increases have said they believe unions could have gotten even larger raises had they rejected the states offer and gone to arbitration. Morrissey Wealth Management will never sell your information. 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 alternatives are suboptimal. 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. 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 And with $3.1 billion in its rainy day fund and a $2.7 billion surplus forecast for the current fiscal year, the states short-term fiscal position is strong. Salary Increase Cost of Living Adjustment (COLA) for Certain Non Represented Employees E Item 2664. CT Mirror. State and union officials are expected to meet again in the fourth year to negotiate wages. This month, that estimate was revised to $5.124 billion. The budget includes a $500 pay raise for all state employees. 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. But former state Sen. Len Suzio, a Republican from Meriden, said Connecticuts long-term fiscal position is very different. The managers who will receive the raises include division heads at state agencies, as well as commissioners and. Retirement reduces your benefit by 5/9 of a percent for each month before the normal retirement age up to 36 months. The issue raised by representatives of the NSHE faculty alliance is that employees represented by a collective bargaining unit a union are in line for a 3 percent pay raise in 2023. The year over year increases drive up the amount paid out by Connecticuts severely underfunded State Employee Retirement System. 116 Washington Avenue, 3rd Floor, North Haven, CTcheryl@morrisseywm.com |(860) 986 7881. In 2015, Connecticut paid $1.7 billion to 49,111 retirees, according to the Comptrollers Open Pension website. The legislature . It came with a wage freeze from 2016 to 2019 and layoff protection from 2019 to 2021. Money Wisdom: Should I Retire in Connecticut? They arent in psych hospital beds. The package was previously approved by the House. Because of the high rate of inflation, the July COLAs are calculated based on 60 percent of CPI-W, which translates to a bump of 3.6 percent as of July 2021. Education employees would receive a 2% raise. State Budget passes including significant funding for state employees TSEA April 29, 2021 0. 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. Gov. After July 1, 2022, these amounts will be increasing to 3% for hazardous duty retirees and 5% for non-hazardous duty retirees. While we wait to see the thousands of individual and committee bills that while dominate the myriad policy debates this year, Yankee Institute is hard at work promoting free-market solutions to the problems we face from Stamford to Putnam and Mystic to Salisbury. House Minority Leader Republican Vincent Candelora challenged Lamont. Administrators will have discretion in how such raises are implemented. A taxicab conveys passengers between locations of their choice. We dont have to continue to overtax our citizens because we took federal money, Senate Minority Leader Kevin Kelly (R-Stratford) said. State retirees receive minimum 2 percent COLAs per year regardless of the inflation rate and a maximum of 6 percent or 7.5 percent, depending on their retirement tier. How Are My Health Insurance Premiums Changing? Manager salaries have not kept up with union salaries so in a lot of cases you have mangers that are earning less than the employees reporting into them, said Melissa McCaw, the states budget director. Will California state employees get a raise? As we noted in a report andCT Mirrorop-ed last year, the debate over whether were in a national recession really misses the point for Connecticut residents. The House bill . State employees will get a 3.5% raise this year, which is an increase of 1% beyond what they were already slated to receive this year. building a betterand more civilConnecticut to live, work, and play. For example, a 60 year old who is qualified to retire but calculated that money will be tight may want to continue working. Retirees that qualify for Medicare are currently reimbursed for the full standard Medicare Part B premium by the State. 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. 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. 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. 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. There was an error and we couldn't process your subscription. 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. Opinion: Gov. Sign up for free Patch newsletters and alerts. Employees who retire after that date will get less lucrative retirement benefits. The raises do not apply to employees in the legislative and judicial branches or higher education. Our services start by completing a free 20-minute introductory call to ensure we are a good match. Intro. The package was previously approved by the House. Were not attracting innovation and industry. Part of the 2017 SEBAC Agreement between the State Employees Bargaining Agent Coalition and Gov. 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. 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. Lamont could rehire retired workers as independent contractors, but then he would be paying those fees as well as funding retirement benefits. By, Corporate Support: Advertising & Sponsorship, See stories by Keith M. Phaneuf / CTMirror.org, Connecticut COVID data: Your town's infection rate, hospitalizations & vaccinations, Israeli army arrests Palestinian suspects in deadly shooting of West Hartford man, Democrats hold three CT House seats in special elections, Dominicans in Connecticut celebrate 179 years of independence, Why it could be harder to get certain prescriptions as pandemic health emergency ends, As new research suggests COVID-19 is now endemic, physicians push back, Long COVID rates fall by half nationwide, New England rates among lowest, Long COVID researchers in CT to get part of $10 million in federal funding. Setting your budget for retirement. For example, if the CPI-W does not increase, then they would not receive any cost of living adjustment. Salary: Legislators appropriated funds equivalent to a 1.25% cost of living allowance for state and higher education employees. While many may disagree, I believe that allowing this contract to stand will offer little tangible benefit to the vast majority of Connecticut citizens but will continue to stand in the way of making significant improvements to badly needed mental health and other vital human services, he said. "To my knowledge, university employees are not included in the pay raises for state workers," she said. Thats when more stringent retirement benefits ordered as part of a 2017 labor concessions deal take effect. Retired Connecticut state employees will see a substantial bump to their pension payments as a result of increasing economic inflation. They also cover the next two fiscal years and potentially 2024-25 as well. HARTFORD, Conn. (WTNH) The state Senate overwhelmingly approved a multi-year labor agreement recently ratified by 46,000 unionized Connecticut state employees. Theyre in their lovely backgrounds. The workers will also receive additional 2.5% general wage increases and step increases beginning July 1 and July 1, 2023. In other words, the State will pay the full standard premium, plus half of any extra. Hartford lawyer Daniel Livingston, chief negotiator for the State Employees Bargaining Agent Coalition, noted the latest contracts are the first wage deals since before the recession of 2007-2009 not negotiated amid a budget crisis. and 75% of the increase above 6%, with a minimum COLA of 2%, and a maximum of 7.5%. 3 Connecticut . The Associated Press contributed to this story. 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. In the past, similar planned changes to retirement benefits have triggered waves of retirements before the changes take place, the OLR report states. At issue are raises and bonuses for 35 bargaining units that negotiated tentative contracts earlier this spring with Gov. Those workers will also get a one-time bonus of $1,000 to be paid out in November as part of companion legislation . The raises will cost the state $13.3 million and the bonuses $2 million. Thank you for being generous with your email. Hurley. The virtually inevitable pay hikes and favorable benefit modifications will then be classified as hardship pay to reward for employees for their phantom frontline service.. 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: The Executive Branch workforce, already down 10% over the past decade, is shrinking faster as retirements surge this spring. 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 . Tier 2 is a non-contributory defined benefit retirement plan (for most members), and those employees that were hired between July 2, 1984 and June 30, 1997, while Tier 2a is a contributory defined benefit retirement plan for those hired between July 1, 1997 and June 30, 2011. If you worked in CT and then decided to retire elsewhere, then the number of plans you can choose from will be more limited. What elements of the cost of living adjustment are changing? Read our blog post Health Insurance Coverage Before Age 65 to learn more about the various options available and the costs associated. Rob Baril, the president of SEIU 1199, in July 2021 arguing that state employees deserve raises. Most state employees would get a $4,500 raise in the first year of the budget. 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 bonuses, the GOP argued, are hardly the key to retaining workers, as the governor and other Democrats claim. Democrats say theyre close to a budget deal. When you retire, your employment checks stop, leaving you with less sources of income. 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). Once you determine your projected income, evaluate if you will have enough money coming in to cover your expenses. We hope their support inspires you to donate so that we can continue telling stories that inform, educate, and inspire you and your neighbors. One source is a pension, another is Social Security, and the last depends on how much you have invested in retirement funds. Since 1997, the State has used a formula to calculate the minimum cost of living adjustment. What will our elected officials be working on to improve policy outcomes for Connecticut residents? Spokesmen for Attorney General Ken . This would save you 1.5% for hazardous duty retirees and 2% for non-hazardous waste retirees. 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. Bonuses are prorated for part-time employees. Though all committees include senators and representatives, legislators must vote separately by chamber on contracts. "It has been an incredibly challenging year, but today is a good day for state employees," TSEA Executive Director Randy Stamps said. listeners, viewers, and readers like you who value fact-based journalism and trustworthy information. 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. 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. Now lets look at the changes to insurance premiums after July 1, 2022. Additionally, the 62-63 year old would be able to pay the lower insurance premiums until they reached 65 years of age. 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. 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 best long-run thing for the state pension system is to have inflation just at or above 2%. To qualify for normal retirement, you must be 63 with 25 years of service or age 65 if you have at least 10 years of service. Your email address will not be published. The raise was negotiated as part of a 2017 agreement between the state and the State Employees Bargaining Agent Coalition. Ned Lamont contracted with the Boston Consulting Group for a report of how to increase state government efficiency. How many hours straight can you legally work? How are my health insurance premiums changing? In this writing, we will cover various factors that will affect your ability to retire before July 1, 2022. 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. She previously reported on the military for The Day newspaper in New London. This material may not be published, broadcast, rewritten, or redistributed. An hourly wage increase. Were losing some of our best and brightest as they seek other parts of the country where its easier to make a living. Connecticut Property Taxes In Every Town: Who Pays The Most? 1998 - 2023 Nexstar Media Inc. | All Rights Reserved. A native of Philadelphia, Julia now calls Connecticut home, but won't give up her 215 area code. 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. Attracting people to fill managerial roles will become even more important as the state prepares for a coming wave of employees retiring next year. 4:04 pm. CONNECTICUT Thousands of state employees received a scheduled raise Wednesday despite Gov. The bigger pay bump for troopers across the state has flowed . 29, 2021 0 though all committees include senators and representatives, Legislators must vote separately by on. 75 % of the earlier cost of living adjustment ( COLA ) for certain Non represented E. A reporter with Hearst Connecticut Media Group outcomes for Connecticut state employees officials are expected to meet again the. Will depend on if your relationship status the adjustment is designed to make a living and local budgets affected... Viewers, and a 2 % newspaper in new London pension System is to inflation... Checks stop, leaving you with less sources of income in handcuffs, Watson said state services currently risk. Officials are expected to meet again in the House raised concerns about the various options available the! The amount deducted from the retirement benefits of certain employees to forgo the raise amid record high unemployment a.... 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Negotiated as part of a 2017 labor concessions deal take effect noticed a lot of the of... Date will get less lucrative retirement benefits of certain employees to pay state-provided. Her 215 area code arent in handcuffs, Watson said 215 area code # ;... In CT are n't up to the 5.38 percent figure and the bonuses, noting how workers., but then he would be paying those fees as well as commissioners and duty.!