Lamont says the bonuses are crucial to retain state employees, who are retiring in larger-than-normal numbers this spring. If a member has fewer than 25 years of vesting service, and if the member retires before age 62 (but after age 55), then the member takes an Early Retirement. They could be eligible for annual salary increases worth between $4,100 and nearly $11,000. The contracts allow workers to accept the $2,500 extra payment and still retire before July 1. In exchange for doing so, HEP participants qualify for lower monthly premiums, reduced copays and don't pay an in-network deductible. Connecticut has a record-setting $3.1 billion in its rainy day fund and is on pace to wrap this fiscal year with an equally unprecedented $2.7 billion surplus. The CT Mirror first reported on March 8 that Lamont had negotiated new wage agreements with roughly 43,000 unionized state employees covering the bulk of the states workforce. Part-timers would be eligible for prorated bonuses. For employees in the Alternative Retirement Program (ARP) - for higher education employees - the employer contribution to ARP will decrease by .75 percent. This transaction is known as grandfathering. With few exceptions, no employees have been eligible to grandfather after 2013.4. 5 Likewise, for those members of the Alternate Retirement Program (ARP) that are subject to the rates listed on Appendix A, there will be no change to the Normal Retirement Ages used to determine the applicable rate. At a later date to be announced, the state payroll system will be adjusted to capture those retroactive contributions from employees that were missed between July and September. There are no changes to the Health Enhancement Program (HEP). "The cost-of-living adjustment for state employees that is included is an incredible step in the right direction. For more information on HEP, contact Care Management Solutions (CMSI) at 1-877-687-1448 or visit www.cthep.com. 2 This rule applies to all retirees that have satisfied the eligibility requirements to qualify for retiree healthcare and prescription coverage as a benefit, including such members of the Alternate Retirement Program (ARP) and Hybrid Plan members of SERS. Look for future communications with more details. Effective July 1, 2022, retirees will continue to be reimbursed fully for the standard premium for Part B. 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 cost of the current agreement to the state is $1.87 billion but that figure will likely rise as it assumes zero raises in the fourth year. Please take note of the following important facts about this change: Under current rules, a retired Connecticut employee and/or dependent(s) who has become eligible for Medicare must enroll in Medicare. These changes (which this document Anthem and United Healthcare/Oxford will have a new designation for in-network providers. Couple that with two years of a coronavirus pandemic and inflation that topped 7% in 2021, and keeping state workers has become challenging, he said. This 1% COLA will have the effect of equalizing the annual salary of each grade and step between the STD and ASTD salary scales. For some members of Tiers II and IIA who retire on or after August 1, 2022, the Normal Retirement Age will change: to 65 for most members, and to 63 for members with 25 or more years of vesting service. 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. As discussed above, Normal Retirement Age determines whether a SERS members retirement counts as a Normal Retirement or as an Early Retirement. ** 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. Add/Update an Employee's Driver's License. Lamont says the bonuses are crucial to retain state employees, who are retiring in larger-than-normal numbers this spring. the future benefits accruing to . 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). DX 35 Hour Dentist Pay Plan Effective July 1, 2022. Democratic gubernatorial candidate Ned Lamont stands behind Lori J. Pelletier at a union rally in 2018. The earliest retirement date for employees who terminate their employment after the rules go into effect will be August 1, 2022. DM 40 Hour Pay Plan Effective July, 1 2022. Please note, however, that only employees whose income is above a certain threshold amount must pay the IRMAA. Our Connecticut small business health insurance plans provide your employees access to the right doctors, benefits, tools, and support to simplify their health journey and help keep your business running. Part-time employees will receive a pro-rated payment. For SERS members who retire on or after August 1, 2022, the formula will be slightly modified: In any year for which the CPI-W is two percent or less, the COLA will be equal to the CPI-W. The amount of each COLA is calculated under a formula that accounts for a percentage of the national rate of inflation for the 12-month period that precedes the adjustment. in its annual Fiscal Accountability Report. If a grandfathered member of Tier II or IIA chooses to retire after the Effective Date, but after also having reached the new Normal Retirement Age, then the member may receive a refund of the amount he or she paid for the right to grandfather.. Since the start of his Administration, Governor Parson has improved state team member pay by more than 21 percent through targeted and across the board pay plans, all in an effort to ensure continuity of state services, combat inflationary wage pressures . 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 agreement would. The state had 2,056 workers retire two years ago and 2,656 in 2021. To determine if an employees income is over the threshold, the government looks to the adjusted gross income that the employee reported on his or her federal return for the tax year that was two years before the year in which the IRMAA will be charged. It also describes steps the state is taking to . sebac_website_graphics_8.png. 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. The 2022 Changes will also make two changes to the way COLAs are awarded to SERS retirees. 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. For example, a member who retires on April 1 is not eligible to receive an initial COLA until January 1 of the following year. If youre going to get a bonus, youve got to stick around with us for a while, said Rep. Jay Case, R-Winsted. These are not job openings. Changes to state employee retirement benefits will go into effect in July of 2022 Please reload the page and try again. The user is on notice that . They also cover the next two fiscal years and potentially 2024-25 as well. If fewer than 15 years of service, use 15. This site provides payroll information for state employees, including weekly pay rates, annual salary rates overtime and other forms of pay. Certain high-income retirees must also pay an additional monthly premium for Parts B and D. (Part D provides prescription drug coverage.) . 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. Benefit Service Date Calculation and Reports. That, in turn, determines (i) whether the members pension will reflect an Early Retirement reduction, and (ii) whether the member will pay an Early Retirement rate (i.e., the rates listed on Appendix A to this memorandum) for retiree health coverage. More than 40,000 unionized state employees would receive $3,500 each in special bonuses by mid-July . 4 See Retirement Services Division Memoranda 2013-10 (Jan. 8, 2013) and 2013-02A (March 20, 2013). Employees who have retired under a Normal Retirement are responsible for the following portions of their premiums: From 0% to 1.5% for hazardous duty retirees and retirees with 25 or more years of service; from 1.5% to 3% for all others. For employees who retire under a Normal Retirement on or after August 1, 2022, and who are not yet eligible for Medicare, these rates will be: 3% for hazardous duty retirees and 5% for all others. These are not job openings. All Rights Reserved. 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. Part-timers would be eligible for prorated bonuses. Department of Administration. These changes (which this document will call the "2022 Changes") go into effect as of July 1, 2022(the "Effective Date"). It seems that JavaScript is not working in your browser. 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. Each retirement plan in SERS (including the Hybrid Plans) specifies a certain age as Normal Retirement Age. Normal Retirement Age is used to distinguish Normal Retirement from Early Retirement.. More than 30 state employee bargaining units have ratified contracts that would provide more than 40,000 workers with $3,500 in bonuses by July, along with three years of raises, the State . In addition, full-time workers would receive a $2,500 bonus in mid-May and an additional $1,000 bonus in mid-July. Compensation Schedules, JULY 15, 2019 (PERS Rate Change) State of Nevada. Knowing where to go when you need care can save you time and money. For members of Tiers II and IIA, special rules can make this a complex calculation. HEP encourages you to take an active role in your health by getting age appropriate wellness exams and screenings. Ned Lamont on Wednesday proposes a wage freeze for state employees in 2022 and 2023, that would save the government an estimated $141.75 million a concession the state employee unions say they are not willing to make. As a result of the 2022 Changes, any SERS member who retires after the Effective Date will receive his or her first COLA thirty months after the members date of retirement. During that time Connecticut's average pension payment increased 15 percent from $34.589 in 2015 to $39,887 in 2020. 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. Keith is a graduate of and a former journalism instructor at the University of Connecticut. Ned Lamont's administration. In addition, full-time workers would receive a $2,500 bonus in mid-May and another $1,000 bonus in mid-July. 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. The State Employees Bargaining Agent Coalition (SEBAC) called the agreement a vital step in resolving the current staffing crisis facing state government. If so, can I avoid that harm by retiring before the Effective Date? Prescription drug costs are rapidly increasing. Learn More Large Group Plans The formulary focuses on clinically effective, lower-cost alternatives to high-cost drugs. When does our new contract take effect? "Agreement Between the Torrington Board of Education and the Torrington Education Association." July 1, 2018 - June 30, 2021. State and union officials are expected to meet again in the fourth year to negotiate wages. Under current premium rates, these percentages mean that employees must pay between $0 to $101.14 per month for retiree health insurance. DescriptionThe Nebraska Department of Transportation (NDOT) is offering up to a $2,500* hiringSee this and similar jobs on LinkedIn. Rob Baril, the president of SEIU 1199, in July 2021 arguing that state employees deserve raises. This means And that was before surging state income and business tax receipts pushed this fiscal years surplus from $2.7 billion to $4 billion. DAgostino said he believes arbitrators would have awarded unions annual cost-of-living raises of 3% or 3.5% given the state governments enhanced ability to pay. Connecticut Governor Lamont has proposed to award state employees significant wage increases and bonuses over three years. But the Democratic governor also confirmed that workers could accept $2,500 of the $3,500 in bonuses offered under a tentative contract deal and still retire before more stringent pension benefits take effect on July 1. Add/Update Employee/Dependent Address. If To help keep your prescription copays low, we're introducing the CVS/Caremark Standard Formulary or the "Covered Drug List." Increase top step bonus by $250 - 32,000 32,000 32,000 . Connecticut has more per capita debt than most other states, and those long-term obligations are expected to put considerable pressure on state finances for decades to come. Retired state employees now get annual cost-of-living adjustments: a minimum of 2 percent and a maximum of 7 percent, depending on inflation. Ned Lamont says are essential to help stem a surge in state employee retirements, are expected to be ratified Friday by the Senate, where Democrats also hold a majority. 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. Watch Live at 7:00 PM: The U.S. and the Holocaust, a film by Ken Burns | Screening & Panel Discussion . [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 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, saves the state about $150 million over the next decade. you or a covered family member takes a maintenance medication, you can only receive one 30-day fill at a For us now to be told these workers can receive the bonuses even when they retire demonstrates that the governor either made a bad deal for the taxpayers or misled the public to avoid the critical fallout of this lucrative political deal.. The 2022 Changes with respect to the reimbursement of Medicare premiums will affect only certain high-income retirees. 2022 12:01 am . The workers will also receive additional 2.5% general wage increases and step increases beginning July 1 and July 1, 2023. The hourly base pay of a Step 1 GS-11 employee is $26.72 per hour1 . Governor Lamont justified these bonuses as a means to retain workers, House Minority Leader Vincent J. Candelora, R-North Branford, said. 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. 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. Find a Listing of State Compensation Plans. Connecticut has more per capita debt than most other states, and those long-term obligations are expected to put considerable pressure on state finances for decades to come. 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. 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. 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. 01. Lamont is correct, though, that the states coffers are unusually flush. If more than 5 years early, use 5. Fiscal Year End Job Aid for HRMS. 2016 CT.gov | Connecticut's Official State Website, regular 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. Salary Increase Cost of Living Adjustment (COLA) for Certain Non Represented Employees E Item 2664. State Employees - SEIU 1199 NE State Employees On this page, you will find ongoing updates about the activities of 1199 members who work for the State of Connecticut. The collective bargaining agreements known as SEBAC 2011 and SEBAC 2017 made Each bargaining unit received a three-year deal, retroactive to last July 1, that includes a 2.5% general wage increase, a step hike for all employees except the most experienced, and a two-stage bonus. 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. To find a Preferred provider, visit www.Anthem.com/statect or www.welcometouhc.com/stateofct. After this initial fill, you must As of this writing, MTN is . . members who purchased the right to retire under the current Normal Retirement Age rules. A new contract granting state police raises and a paid lunch break tops a list of six new labor deals that would cost $58 million collectively by 2022 and also could throw a last-minute. It seems that JavaScript is not working in your browser. Doctors 40 Hour MD Pay Plan with 3 Additional Steps Effective July 1, 2022. . Preferred in-network specialists are currently available for ten medical specialties: Your Doctor Might Already Be Preferred. In addition, AFSCME Council 3 has secured a $1000 bonus to be paid upon ratification of the agreement in January 2022. . This news story is funded in large part by Connecticut Publics Members Some of the features on CT.gov will not function properly with out javascript enabled. 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, House Minority Leader Vincent J. 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