In 2015, Connecticut paid $1.7 billion to 49,111 retirees, according to the Comptroller's Open Pension website. 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. In exchange for lifting the debt ceiling, the bill would cap overall 2024 spending to 2022 levels -- about a $130 billion cut -- and limit growth in spending to 1% annually over the next decade. The agreements, which unions ratified earlier this spring, are retroactive to the start of this fiscal year, which began last July 1. That is the status quo.. 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. 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. 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 the Lamont administration is facing a gathering wave of retirements, producing a sense of urgency that Geballe says is shared by labor and management. Some changes already have come, pushed by Nicholas Hermes, a West Point grad who is the statewide human resources director at DAS, hired in 2016. Bonuses are prorated for part-time employees. 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. DARRELL HACKETT See Bonuses would be prorated for part-time employees. /. Union leaders say the workforce is ready, if wary. CT Gov. 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. in its annual Fiscal Accountability Report. 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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 one thing we know about Ned Lamont or any Democrat, for that matter is that he will not fight the unions. The Malloy administration hired a customer-service expert to improve service at the much-maligned Department of Motor Vehicles, and Lamont won passage of legislation reducing the need for residents to go to the DMV: Drivers licenses now are good for eight years, not six; and renewals of vehicle registrations come every three years, not two. Now shes asking for help herself, One musician remembers what it was like to tour the world with singer and activist Harry Belafonte, Connecticut COVID data: Your town's infection rate, hospitalizations & vaccinations, Tracking health threats, one sewage sample at a time, COVID during pregnancy may alter brain development in boys. Budget panel endorses raises, bonuses for CT state workers In an effort to mitigate the potential loss of thousands of state employees, Gov. It includes 2.5% raises for four straight years that would be retroactive to July 1, 2021. To be prepared to comply with this change, all employers should do the following prior to June 1: . But the journey to get from here to there, and the ordering of initiatives, is very complex to think about.. Thats when more stringent limits on state retirement benefits, negotiated as part of a 2017 concessions deal with unions, take effect. [your comment section will not enable me to type this in lower case] stop with the money illusion. Finance panel: Next CT tax fairness study must focus on inequality, CT budget battle heats up as Lamont offers rosy financial picture, State Employees Bargaining Agent Coalition, Proudly powered by Newspack by Automattic. DAS is now working to centralize and streamline H.R. By 2020, the state paid $2.2 billion to 55,348 retirees. 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. Likely, the governors spinmeisters will follow the lead of union leaders in referring to all state employees as frontline workers, although many agencies were closed to the public during most of the pandemic. I would say that largely we havent seen that partnership happen, but we continue to have the door wide open, Glidden said. The Connecticut State Legislature will begin its 2023 session on January 4thand will adjourn on June 7th. Thats something we certainly need to work on here.. The budget is expected to be a record high for the 2023-2024 fiscal year, which will start July 1. And that total is expected to grow considerably between now and July 1. It could be because it is not supported, or that JavaScript is intentionally disabled. Republicans countered Friday that the raises and bonuses far outstrip what households in the private sector are receiving. The nonpartisan Office of Fiscal Analysis estimates the contract will cost the state $1.87 billion over three years. State retirees to see pension bump as inflation jumps 6 percent The state is also hoping the increases will also attract more people to state-level management positions. Ned Lamont's administration and a coalition of . This proposed contract is a raw deal for the working people of this state, Sen. Ryan Fazio (R-Greenwich) 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. As a federal EPA employee recently told the Washingtonian in a piece about the Trump administration, I fully intend to outlast these people.. The managers who will receive the raises include division heads at state agencies, as well as commissioners and deputy commissioners. BCG documented that the sclerotic state bureaucracy takes an average of 33 weeks to hire a new employee. The raises provided to state managers mirror what the state provided to union workers over the past four years under the 2017 agreement with the State Employees Bargaining Agent Coalition. Photos: Iconic Landmarks To Visit Across CT. 2022 Retirement Changes for CT State Employees 0:36. The House, where Democrats also hold a majority, approved the package 96-52 on Thursday. Hartford lawyer Daniel Livingston, chief negotiator for the State Employees Bargaining Agent Coalition, or SEBAC, estimated that going with one-time bonuses and a smaller 2.5% annual cost-of-living raise saves the state about $150 million over the next decade. Attracting people to fill managerial roles will become even more important as the state prepares for a coming wave of employees retiring next year. 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. The states robust, short-term fiscal position is a sugar high that will pass when the federal stimulus money goes away, ODea said. If you value the story you just read please consider making a donation. The $2,000 payment will only be available to employees who were hired or appointed before June 30, 2018. The comptrollers office cautions that some those eligible to retire will not yet have earned full retirement benefits, giving some an incentive to stay. In the past, similar planned changes to retirement benefits have triggered waves of retirements before the changes take place, the OLR report states. Budget panel endorses raises, bonuses for CT state workers In 2015, Connecticut paid $1.7 billion to 49,111 retirees, according to the Comptrollers Open Pension website. Were working really hard to digitize everything we do.. 2023 January COLA Increase Approved - portal.ct.gov . But two union leaders say they see the states expectations of a significant retirement wave as well-founded. Senate Joins House And Votes To Give Raises, Bonuses To State Employees "I've got to recruit and keep them in order to keep our government going, he said. But Gov. Sal Luciano, a former social worker who is the president of the Connecticut AFL-CIO, said many state agencies are understaffed. They also cover the next two fiscal years and potentially 2024-25 as well. Ned Lamont is negotiating a new wage contract with the State Employees Bargaining Alliance Coalition. The deal works out to about $40,000 in raises per state employee over four years, Fazio said, which works out to about $1,300 per Connecticut household. The contracts, which Gov. Hazard or pandemic pay wasnt part of the negotiations, but will be resolved as part of another agreement, Lamont said. State law calls for equity in salary adjustments between union and non-union employees. With this agreement, we were able to achieve those goals in a realistic way that does not imperil our future prospects and honors the great service that has and will continue to benefit our residents, Lamont said in a statement. Ned Lamont in Darien earlier this month. The CREATES report noted that 8,000 employees are eligible for retirement before July 2022 and identified 200 opportunities totaling $600 to $900 million of potential value., **Ken Girardin contributed to this article**, So of you retire prior to October 2021 and receive Your Cola 9 monthe later in July 2022 , will you receive above the normal 2 percent since inflation Is hIgh. 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. Sen. Cathy Osten defending the SEBAC deal. A wave of state employee retirements is expected in the coming months, resulting in an "unprecedented" loss of knowledge and skills, some officials say. The best long-run thing for the state pension system is to have inflation just at or above 2%. As a State of Connecticut employee you may be entitled to a host of benefits that are not only attractive, but also may be portable should your career . At Yankee Institute, we know Connecticut is a state with boundless opportunity, and we intend to help make our state more than a place where people are just able to make ends meet! 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 . CONNECTICUT State officials announced the tentative state employee union bargaining agreement, which calls for multiple years of raises and bonus payments. The Democrat-controlled House voted 96-52 to approve the contracts, after a four-hour debate during which Republicans insisted the compensation far outstrips what private-sector workers are receiving, or what taxpayers can afford. The $2 billion agreement also includes special lump-sum payments of $2,500 for active employees who've . Thirty percent intend to leave the state upon retirement. Connecticut Minimum Wage Set to Increase to $15 It will slow cost-of-living adjustments for all new retirees and raise health costs for a few, primarily high earners. . He has been the state finances reporter at CT Mirror since it launched in 2010. GOP minority says taxpayers got a raw deal, Click to share on Facebook (Opens in new window), Click to share on Twitter (Opens in new window), Click to share on LinkedIn (Opens in new window), Click to email a link to a friend (Opens in new window). Retired Connecticut state employees will see a substantial bump to their pension payments as a result of increasing economic inflation. Republicans argue the SEBAC package will lead to big deficits in a few years -- and tax hikes. Ned Lamont, a cable-television entrepreneur who took office on January 9 and hired Geballe two weeks later. Theres no way to take on the legacy of mass incarceration other than to undo it, one step at a time. After leaving IBM, he became chief executive officer of Core Informatics, a software startup that Hartford Business Journal included in its 2017 list of best places to work in Connecticut. Deserves got nothing to do with it, Rep. Thomas ODea, R-Ledyard, said, citing the famous dialogue Clint Eastwoods Western outlaw uttered in Unforgiven, the 1992 Academy Award-winning film. The state also faces a potential wave of retirements. Part-timers would be eligible for prorated bonuses. Those who challenge government actions for the right reasons could be forever barred from political office unjustly by this law. Breaking from the status quo is very hard I think for people generally, but particularly in government, where you dont have competition the same way you do in the private sector, where if you dont change, if you dont innovate, if you dont find new ways to add value, eventually you go out of business and everybody loses their job. Though the list of reforms may be exhausting to review, it is far from exhaustive! 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. And thats why we want to work with you to build a broad-based coalition to encourage sound policy reforms to enable Connecticut residents to forge a better future for themselves and their families. The bonuses, the GOP argued, are hardly the key to retaining workers, as the governor and other Democrats claim. Memo - 2022 Retirement Changes for CT State Employees The Democratic-controlled Senate voted 22-13 along party lines to approve the contracts, which cover about 46,000 workers the bulk of the states workforce. The agreement would cost the state nearly $1.9 billion over four fiscal years, according to nonpartisan fiscal analysts. The Office of the State Comptroller reports that state government found a way to spend $47.11 billion in 2022 and, if trends continue, we can expect that number to grow even more going forward. I dont believe, fundamentally, that this agreement is fair at all.. In a bill drafted . Some reflected frustrations by the public in dealing with state agencies, as well as employees knowing what is happening elsewhere in government. Watching is one of those who spoke against it, Sen. Craig Miner. 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. Private-sector employees can only dream of having that, said Sen. Henri Martin, R-Bristol. Sign up for free Patch newsletters and alerts. Critics say the deal is too generous and could lead to future tax hikes. In addition, full-time workers would receive a $2,500 bonus in mid-May and another $1,000 bonus in mid-July. There is ample evidence that this is a fair contract, a reasonable contract, an affordable contract, she said of Connecticuts wage hikes. Part of the 2017 SEBAC Agreement between the State Employees Bargaining Agent Coalition and Gov. 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. 13 Week Package - $38.87 / 13 Weeks. Access all Premium Content and the E-Edition for 1 day. 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. Are more state employees retiring than usual? Were still largely in a world by the way, very similar to most every other state where there are numerous processes which are still paper based, which are still highly manual, which rely on very old custom software, Geballe said. Gov. The [nonprofit] industry pegs the inflationary loss its taking on these payments at $460 million per year, according to the CT Mirror. "I come out of the private sector. Note: the above image is a chart for the CPI-U, not the CPI-W. 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. font size, Human Resources Business Rules and Regulations. Senate gives final approval to raises, bonuses for CT state employees Anniversary Date (AI Date) Change for Certain Non-Represented Employees (E-Item 2271), Changes Anniversary Date from July 1 to January 1 for employees assigned to the MP, MD, SE, DM, CJ & VR, Labor units 02 & 03 pay plans, DAS General Letter 193 - Anniversary Date (AI Date) for Classes Covered by Collective Bargaining, Procedures for establishing anniversary dates for employees covered by collective bargaining agreements, Salary Increase - Cost of Living (COLA) for Certain Non-Represented Employees (E-Item 2090), Authorizes 3% Cost of Living Increase effective July 1, 2014 to employees assigned to the MP, MD, SE, DM, CJ-EX & VR, Labor units 02 & 03 pay plans, Salary Increase - Cost of Living Adjustment (COLA) & Annual Increase (AI) for Associate Attorney Generals (E-Item 2002), Authorizes a 3% Cost of Living Increase and a 3% Annual Increment not to exceed the maximum of the salary grade for Associate Attorney Generals, Salary Increase - Cost of Living Adjustment (COLA) for Certain Non-Represented Employees (E-Item 1935), Authorizes 3% Cost of Living Increase effective July 1, 2013 to employees assigned to the MP, MD, SE, DM, CJ-EX & VR, Labor units 02 & 03 pay plans, Salary Increase - Cost of Living Adjustment (COLA) for Certain Non-Represented Employees (E-Item 1942), Authorizes 3% Cost of Living Increase effective July 1, 2013 to specific titles assigned to the EX pay plan, Salary Increase - Cost of Living Adjustment (COLA) for Certain Non-Represented Employees (E-Item 2091), Authorizes 3% Cost of Living Increase effective July 1, 2014 for certain employees assigned to the EX pay plan, Salary Increase and Pay Plan Adjustments for Certain Non-Represented Employees (E-Item 2147), Authorizes a Certain Percentage salary adjustment based upon most recent pay increase for certain employees assigned to the EX pay plan, adjusts the EX pay plan and effective January 1, 2016 pay increases for EX mirrors MP, Salary Increase Cost of Living Adjustment (COLA) for Certain Non Represented Employees E Item 2664, Authorizes 3.5% Cost of Living Increase effective July 1, 2019 to employees assigned to the MP, MD, SE, DM, CJ-EX & VR, Labor units 02 & 03 pay plans, Salary Increase Cost of Living Adjustment (COLA) for Certain Non-Represented Employees (E-Item 2665), Authorizes 3.5% Cost of Living Adjustment to certain employees who are assigned to Bargaining Unit 01 effective July 1, 2019, In a letter to his co-chair in management, Rinker wrote: I predict that some day some one will want to change state employment and the report you signed off on wil be the basis for that change., Change is coming for Connecticut state employees, 2023 Hearst Media Services Connecticut, LLC, Police: Pedestrian killed in crash on Route 9 in Middletown, Police: Horses starved, kept in unsanitary conditions on CT farm, Middletown to restart Bird e-bike, scooter microtransit program, Middletown residents cheer decision to fully replace Pameacha dam, Cromwell man sentenced for carjacking date at knifepoint in 2020, Police: Suspect in Cromwell hotel robbery threatened to use a gun, Middletown Mayor Ben Florsheim begins campaign for 2nd term, 2 Middletown youths charged in connection with school fight, Middlesex County Historical Society to receive 3 historic objects, East Hampton fire department marks 100 years with Bevin cowbells, Police: Pedestrian struck, killed in Route 9 crash in Middletown, New Britain bar's liquor license suspended after serving alcohol to minors, officials say, Police: Horses starved and kept in unsanitary conditions on Middletown property, Police: Threat made to Middletown schools deemed not credible, CT records first cases of new COVID variant Arcturus, transmission remains low, Police: Mystic woman killed, mother and daughter seriously hurt in Gold Star Highway crash in Groton. Concerns over energy prices, inflation, and general cost of living continue to dominate the headlines and the threat of a recession hovers over economic forecasts. Salary Increase - ct Critics say the deal is too generous and could lead to future tax hikes. Driven by a surge in state employee retirements, Connecticut's spending on pension payments ballooned to a recordhigh $2.5 billion in 2022, state data shows. 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. The increases, part of a four-year package negotiated by Gov. state of ct employee step increase 2022; state of ct employee step increase 2022. Gov. SEBAC employees who are employed before March . Hed also like to talk about a classification system that is flexible and provides a career ladder. He said DAS has capable managers pushing for change, such as Hermes and the states chief information officer, Mark Raymond. SEBAC employees who are employed before March 31, 2022 would also get a $2,500 bonus. But Gov. BCG was to help accelerate efficiency efforts, enabling the state to operate with less manpower.
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