Lamont inherited an Executive Branch workforce in 2019 that already was down 10% from 2010 levels. Please also take note of the following important facts about these changes: Each of the 2022 Changes potentially affects the amount certain employees will receive from the state over the course of their retirement. Connecticut State Unemployment Insurance (SUI) As an employer, you're responsible for paying SUI (remember, if you pay your state SUI in full and on time, you get a 90% tax credit on FUTA). Retired state employees now get annual cost-of-living adjustments: a minimum of 2 percent and a maximum of 7 percent, depending on inflation. It seems that JavaScript is not working in your browser. in its annual Fiscal Accountability Report. Depending on the members date of retirement, therefore, a member must wait between nine and fourteen months to receive his or her first COLA. And when the rate of inflation is greater than two percent, retirees will receive the same COLA that is paid to members who retire on or before the Effective Date. Departments and Agencies Plans are designed for businesses with 2 to 50 employees. Connecticut Gov. Part-time employees will receive a pro-rated payment. This will be paid in the payroll that includes July 1, 2022. Rob Baril, the president of SEIU 1199, in July 2021 arguing that state employees deserve raises. If so, can I avoid that harm by retiring before the Effective Date? The states robust, short-term fiscal position is a sugar high that will pass when the federal stimulus money goes away, ODea said. The Democrat-controlled House voted 96-52 to approve the contracts, following a four-hour debate during which Republicans insisted thecompensation far outstrips what private-sector workers are receiving, or what taxpayers can afford. To understand the 2022 Changes, it is necessary to understand both the processes created by the SEBAC agreements and certain basic structures of the states benefits for retirees. Republicans also said they appreciate the hard work of state employees, particularly during the worst of the coronavirus pandemic, but the issue isnt as simple as some believe. Certain high-income retirees must also pay an additional monthly premium for Parts B and D. (Part D provides prescription drug coverage.) The only thing the middle class is getting here is the bill.. 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. Keynesian economics (/ k e n z i n / KAYN-zee-n; sometimes Keynesianism, named after British economist John Maynard Keynes) are the various macroeconomic theories and models of how aggregate demand (total spending in the economy) strongly influences economic output and inflation. These are deeply personal questions, but each employee should be encouraged to consider them. Ned Lamont defended raises and bonuses Tuesday that could boost state employees pay close to 7% this year, calling them vital to the states ability to recruit talent and preserve services amidst high inflation. Each retirement plan in SERS (including the Hybrid Plans) specifies a certain age as Normal Retirement Age. Department of Administration. Employees of agencies with access to the Core-CT Benefit Calculator can also use that Calculator. State Employees Bargaining . 2016 CT.gov | Connecticut's Official State Website, regular Salary scales define each of the payroll system salary structures (grades and steps) on an annual, bi-weekly, and hourly basis. Please note, however, that Normal Retirement Age for Tiers II and IIA will not change for purposes of calculating amounts due for retiree health coverage. Check Schedule View the mailing dates for retiree payroll checks for the current year. The budget announced by Gov. Locate a Doctor, Hospital, or Pharmacy in the Workers' Compensation Network More than 40,000 unionized state employees would receive $3,500 each in special bonuses by mid-July under tentative contract agreements reached this week with Gov. This 1% COLA will have the effect of equalizing the annual salary of each grade and step between the STD and ASTD salary scales. And that was before surging state income and business tax receipts pushed this fiscal years surplus from $2.7 billion to $4 billion. The contracts allow workers to accept the $2,500 extra payment and still retire before July 1. 01. DY 37.5 Hour Dentist Pay Plan Effective July 1, 2022. 2023 The Conneticut News Project. When does our new contract take effect? Your co-pay will remain the same as it is today. Get CT Mirror briefings with enterprise reporting, investigations and more in your inbox daily. In addition, AFSCME Council 3 has secured a $1000 bonus to be paid upon ratification of the agreement in January 2022. This additional premium is known as the Income-Related Monthly Adjustment Amount, or the IRMAA.. In addition, full-time workers would receive a $2,500 bonus in mid-May and an additional $1,000 bonus in mid-July. Governor Lamont wants the union vote next November, and he will doeverything in his power to get it at the expense of everyone else in Connecticut.. If you are in the POS Plan, you'll pay 40% of the cost for out-of-network tests. The 2022 Changes will affect the cost of retiree health insurance in two different ways. According to state employee union documents, Lamont is proposing to award all unionized state employees three annual base salary increases of 2.5 percent and, for about two-thirds of. Yesterday marked the second and final day of the arbitration hearing between SEBAC and the State of Connecticut over the amount of pandemic pay due to frontline essential state employees. 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. Look for future communications with more details. As discussed above, Normal Retirement Age determines whether a SERS members retirement counts as a Normal Retirement or as an Early Retirement. The formula used took 60% of the increase in the Consumer Price Index ( CPI-W) up to 6% and . percent (2.5%) increase plus step increases, annual increments or . If you already use an in-network PCP or specialist, there's a good chance your doctor is a Preferred provider. If you are seeing an in-network provider, it is the provider's responsibility to submit all necessary information during the medical necessity review process. will call the 2022 Changes) go into effect as of July 1, 2022 (the Effective Date). The agreement calls for 2.5 percent general wage increases and step increases retroactive to July 1, 2022. Effective July 1, 2022, State regular and contractual employees will receive a 3% COLA. For employees in the Alternative Retirement Program (ARP) - for higher education employees - the employer contribution to ARP will decrease by .75 percent. The state of Connecticut is in the best financial condition that I can recall, being up here 10 years, said Rep. Michael DAgostino, D-Hamden, who led the debate in favor of the raises. The workers will also receive. But the tentative deals with bargaining units technically dont address hazard pay or special compensation for the pandemic. More than 40,000 unionized state employees would receive $3,500 each in special bonuses by mid-July . Compensation Schedules, JULY 15, 2019 (PERS Rate Change) State of Nevada. The states robust, short-term fiscal position is a sugar high that will pass when the federal stimulus money goes away, ODea said. If youre going to get a bonus, youve got to stick around with us for a while, said Rep. Jay Case, R-Winsted. font size. To the extent the rates on Appendix A apply to any member of Tier II or IIA who retires on or after August 1, 2022, the rates will be calculated as if the current Normal Retirement Age still applied.5. She previously worked at WTNH-TV and MyTV9 in New Haven, Connecticut. Thats when more stringent limits on state retirement benefits, negotiated as part of a 2017 concessions deal with unions, take effect. [learn more] Contact the Customer Service Center Retirement Services Division Office of the State Comptroller 165 Capitol Ave Hartford, CT 06106 (860) 702-3480 osc.rsd@ct.gov More state retiree information And that was before surging state income and business tax receipts pushed this fiscal years surplus from $2.7 billion to $4 billion. You'll pay nothing for medications and supplies used to treat diabetes (Type 1 and Type 2). font size. Very truly yours, The 2022 Changes will also make two changes to the way COLAs are awarded to SERS retirees. These are not job openings. Ned Lamont's administration, according to a settlement document obtained by the CT Mirror. The extra COLA will be calculated on the basis of the CPI-W for that initial, 18-month period of high inflation. 2023 The Conneticut News Project. The 2022 Changes fall into three different categories: Many state employees have raised questions about 2022 Changes, especially: There is no simple answer to these questions. Administration officials estimate the wage increases and bonuses would cost $287 million more this fiscal year, and $403 million above 2020-21 levels next fiscal year. Some of the features on CT.gov will not function properly with out javascript enabled. There will be no guaranteed minimum for those who. Let us be clear. HEP encourages you to take an active role in your health by getting age appropriate wellness exams and screenings. Currently, the first COLA that a member may receive after his or her retirement is subject to two special rules. The state had 2,056 workers retire two years ago and 2,656 in 2021. Health care costs can vary from place to place in Connecticut, as they do in other states. Democratic gubernatorial candidate Ned Lamont stands behind Lori J. Pelletier at a union rally in 2018. Keith is a graduate of and a former journalism instructor at the University of Connecticut. All Rights Reserved. Whoops! No early retirement health care premium will be charged for any employee who has 25 years of service as of July 1, 2011 who retires before July 1, 2013. Senate Minority Leader Kevin Kelly, R-Stratford, said he questions how the deal amounts to a staff retention plan if workers can accept 70% of the pledged bonuses and still retire a month later. ** The Family Less Employed Spouse (FLES) rate is available only when both spouses are enrolled in active coverage, eligible for health insurance, and enrolled in the same plan with at least one child. Beginning Jan. 1, 2021, everyone in Connecticut will see more money coming out of their paychecks due to a new state law called the Paid Family Leave Act. Here's how much you will pay for your maintenance and non-maintenance prescriptions: The copays for medications used to treat chronic conditions continue to be: For example, an enrollees adjusted gross income for 2019 was used to determine if the employee had to pay an IRMAA in 2021. Lamont is correct, though, that the states coffers are unusually flush. Will these changes have a negative effect on my retirement? Whoops! You'll continue to pay nothing if you receive care at a Preferred lab! listeners, viewers, and readers like you who value fact-based journalism and trustworthy information. 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. The contracts allow workers to accept the $2,500 extra payment and still retire before July 1. Its a matter of whether we can afford it.. sebac_website_graphics_8.png. The payments are made through deductions from the employees retirement benefits (or billed directly to the retiree should they not receive a monthly pension benefit). CTDOL.state.ct.us. . The rate of inflation is measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (also known as the CPI-W). Part-timers would be eligible for prorated bonuses. font size. It seems that JavaScript is not working in your browser. The coalition, which represents most state employee unions excluding the state police, added that, It is a critical step in resolving the current staffing crisis that is the consequence of decades of disinvestment and austerity., Lamont spokeswoman Lora Rae Anderson said, Were happy the House has passed the SEBAC agreement, and we are hopeful the Senate will do the same.. Each employee should also give consideration to how long he or she wants to continue working; how he or she wants to spend the next few years; where the employee wants to live; what other obligations he or she has; and whether he or she will have additional sources of income in retirement. Lamont acknowledged that step increases would add roughly another 2 percentage points to workers pay, while the bonuses represent a one-time hike of about 3%. For either Tier, however, members can find out what the reduction will be for any given date of retirement by consulting the Estimator on the website of the Retirement Services Division (the RSD), at https://www.osc.ct.gov/empret/tier2summ/workshop/disclaimer.htm. The legislature still must consider the agreements, and is expected to act before the regular 2022 session closes on May 4. Since 1997, the State has used a formula to calculate the minimum cost of living adjustment. If more than 5 years early, use 5. The 2022 Changes with respect to the reimbursement of Medicare premiums will affect only certain high-income retirees. The retiree is then transitioned into the states custom group Medicare Advantage Plan, which is known as the MAPD. Employees who are Medicare-eligible at the time of their retirement are enrolled in the MAPD as of their retirement health enrollment date. While you can still see any in-network primary care provider (PCP) or specialist and pay only a $15 copay, if you see a Preferred in-network provider, the copay will be waived - you'll pay nothing! Normal Retirement Age is used to distinguish Normal Retirement from Early Retirement.. I think the governors being somewhat less than candid and frank with the public, Kelly said, adding that workers in the private sector arent enjoying compensation hikes close to those state employees would receive. Under current rules, the amount of a retirees COLA is calculated under a formula that accounts for a percentage of any increase in the CPI-W for the preceding year, but which guarantees an annual COLA of at least two percent. General Employee Benefits 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 bring you to other avenues of state service. But most House Republicans who spoke in Thursdays debate predicted taxpayers wouldnt be as happy as state employee unions are. This means Effective July 1, 2022, retirees will continue to be reimbursed fully for the standard premium for Part B. Using high-value Anthem and United Healthcare/Oxford providers and facilities - those that offer higher quality care at lower costs - saves money for you and the State. Ned Lamonts administration on Friday transmitted agreements reached on 35 labor contracts that cover 43,000 unionized state employees to the General Assembly for consideration.