A wave of state employee retirements is expected in the coming months, resulting in an "unprecedented" loss of knowledge and skills, some officials say. A multi-year labor agreement recently ratified by 43,000 unionized Connecticut state employees faced a key vote . Use Next and Previous buttons to navigate. Osten said the raises reflect the valuable work state employees provide daily, and particularly throughout the coronavirus pandemic. This month, that estimate was revised to $5.124 billion. 2022 or later, the State will split the extra cost the feds charge to wealthier retirees. by Logan, Brown, Hunt, Clemmons. By 2020, the state paid $2.2 billion to 55,348 retirees. 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 . The pandemic is leading many to abandon public service, union members added. The Yankee Institute for Public Policy, the Hartford-based conservative policy group that has been mobilizing opposition to the deal, argues this far exceeds the compensation that private-sector workers are receiving as as they struggle with inflation in excess of 8%. Gov. The contracts allow workers to accept the $2,500 extra payment and still retire before July 1. Lamont could rehire retired workers as independent contractors, but then he would be paying those fees as well as funding retirement benefits. The Executive Branch workforce, already down 10% over the past decade, is shrinking faster as retirements surge this spring. Consider scheduling an appointment here. 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. 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 . Enter your email to receive a copy of our 7 Step Retirement Guide for Connecticut State Employees! Ned Lamont is negotiating a new wage contract with the State Employees Bargaining Alliance Coalition. 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. What can be done to lower home heating bills? state income tax ranges from 3% to 6.99%. HARTFORD, Conn. (WTNH) The state Senate overwhelmingly approved a multi-year labor agreement recently ratified by 46,000 unionized Connecticut state employees. "It has been an incredibly challenging year, but today is a good day for state employees," TSEA Executive Director Randy Stamps said. 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. Keep in mind, if you do not qualify for normal retirement in any of these plans, then you will not receive the full amount of the benefit. 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. The easiest way out of the crisis is to keep employees on board by offering them generous pay and benefit incentives. The year over year increases drive up the amount paid out by Connecticut's severely underfunded State Employee Retirement System. Stateline Story December 21, 2021. 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. Would he risk all the ARPA funds that the state has by doing this? Ritter warned. How Are My Health Insurance Premiums Changing? 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. 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%. Tennessee Code Annotated, 8-36-801 dictates the COLA award. Salary Increase Cost of Living Adjustment (COLA) for Certain Non Represented Employees E Item 2664. NBC Connecticut. Ron DeSantis has been a staunch advocate for police officers and has pushed for bonuses for that group. Lamont a couple of weeks ago said he would prefer a general pay raise be postponed and that state employees on the front lines of the pandemic should receive hazard pay. Because the state is facing a massive retirement wave, which, if mishandled, could cripple state government. 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.. Republicans countered Friday that the raises and bonuses far outstrip what households in the private sector are receiving. An hourly wage increase. There are a few strategies one can take if they are thinking about retirement. All Rights Reserved. Critics particularly have attacked the bonuses, noting that workers could accept the $2,500 extra payment and still retire before July 1. 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. The majority of retirees are not impacted by IRMAA, but if you do have a large pension or a large amount of investments between you and your spouse then it may apply to you. 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. 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. How much money does the state have to spend on programs? 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. Fazio said that it reflects the pull unions have on state government and that taxpayers will end up footing the bill. Connecticut Property Taxes In Every Town: Who Pays The Most? More than 40,000 unionized state employees would receive $3,500 each in . He has been the state finances reporter at CT Mirror since it launched in 2010. October 25, 2021 @ They are over-extended and fed up, and who could blame them? she said. $3.1 billion rainy day fund$3.95 billion in black ink this fiscal yearA grand total of slightly more than $7 billion. Lamonts predecessor, Dannel Malloy, once boasted to a union gathering, I am your servant. Lamont is also in public (union) service, willingly or not. November 3, 2021 @ 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%. Thirty percent intend to leave the state upon retirement. The [nonprofit] industry pegs the inflationary loss its taking on these payments at $460 million per year, according to the CT Mirror. Full legislature expected to vote before May 4, 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). Thank you for being generous with your email. After July 1, 2022, these amounts will be increasing to 3% for hazardous duty retirees and 5% for non-hazardous duty retirees. 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. This way you can figure out a combination that will provide the income you are looking to receive. Were not attracting innovation and industry. Therefore, if you do not qualify for normal retirement then it may not be the best idea to take an early retirement and receive a reduced pension benefit. Connecticut Public Radio | Whoops! Photos: Iconic Landmarks To Visit Across CT. His proposal includes $1,000 bonuses in October and October 2022 for state workers. 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. 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. The changes will only affect those who retire after July of 2022, but according to the OLR report, historically such changes have resulted in a larger number of employees retiring before the cut-off date. Some Republicans in the House raised concerns about the bonuses, noting how state workers could still retire even after receiving the bonuses. In addition, full-time workers would receive a $2,500 bonus in mid-May and another $1,000 bonus in mid-July. The one thing we know about Ned Lamont or any Democrat, for that matter is that he will not fight the unions. They also cover the next two fiscal years and potentially 2024-25 as well. and 75% of the increase above 6%, with a minimum COLA of 2%, and a maximum of 7.5%. The. Thats because state governments coffers are flush with cash as never before. For example, if the CPI-W does not increase, then they would not receive any cost of living adjustment. 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. 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. After July 1, 2022, there is going to be a change to IRMAA that may negatively affect certain individuals. 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 opportunities to advance students learning are endless. Cooper also recommends spending $860 million for pay incentives and raises for the state employees. They also cover the next two fiscal years and potentially 2024-25 as well though unions have the option of reopening wage talks before then. The bigger pay bump for troopers across the state has flowed . 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. Similar deals would pass automatically if the legislature didnt take action in the past, but a 2017 law requires approval from both chambers. As introduced before the House Appropriations Committee Wednesday, the 2022-23 State Employee Pay Plan would keep base salary wages for most state employees stagnant through fiscal year 2022, which runs from July 2021 to June 2022, and then provide a 55-cent-per-hour raise in fiscal year 2023. The managers who will receive the raises include division heads at state agencies, as well as commissioners and deputy commissioners. Lamont should instead ask big corporations and the states richest residents to contribute their fair share, according to the Hartford Courant. Gov. 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. Get CT Mirror emails in your inbox daily. The states top rate income tax has been raised from 4.5 percent to 6.99 percent between 2003 and 2015. In addition, full-time workers would receive a $2,500 bonus in mid-May and another $1,000 bonus in mid-July. But former state Sen. Len Suzio, a Republican from Meriden, said Connecticuts long-term fiscal position is very different. You must be fully vaccinated with the primary series of an accepted COVID-19 vaccine to travel to the United States by plane. Those who fall under the Tier 2 or 2a plans must be either age 60 with 25 years of service or 62 with 10 years of services to be eligible for normal retirement. 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. Sign up for free Patch newsletters and alerts. The Connecticut State Legislature will begin its 2023 session on January 4thand will adjourn on June 7th. Theres a pro-rated bonus for part-time employees. A salary increase of a specific dollar amount distributed across pay periods. As a The tipped wage would rise to $6.75 from $3.75 over the same time period. Connecticut Property Taxes In Every Town: Who Pays The Most? There is ample evidence that this is a fair contract, a reasonable contract, an affordable contract, she said of Connecticuts wage hikes. 2023 The Conneticut News Project. 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. You will see that each tier increases the normal retirement age as we continue to see improved medicine and longer life expectancies. 5 The full legislature is expected to vote on the tentative wage agreements before the regular 2022 General Assembly session closes on May 4. 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. BCG documented that the sclerotic state bureaucracy takes an average of 33 weeks to hire a new employee. Though all committees include senators and representatives, legislators must vote separately by chamber on contracts. But Im here in support of those folks who cant be here.. In this writing, we will cover various factors that will affect your ability to retire before July 1, 2022. The long session, as non-election years are called in Hartford, will be centered around the biennial budget. Ned . The bill originally had a $2,550 raise for troopers. Read our blog post Health Insurance Coverage Before Age 65 to learn more about the various options available and the costs associated. 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. Each year includes a 2.5% general wage increase, as well as a step hike for all but the most senior workers. We would recommend checking out my podcast episodes Properly Estimating Retirement Cash Flows and A Retirement Income Planning Strategy That Works as they would provide useful guidance on this process (put retirement budget here). The package was previously approved by the House. Will California state employees get a raise? 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