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. Ned Lamonts administration and already ratified by the 35 bargaining units involved, now heads to the full General Assembly for final consideration. For employers with 25 or fewer employees the minimum wage will reach $15 per hour by Jan. 1, 2023. . The legislature . 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. Employees would also get a $2,500 bonus if they are employed as of March 31, 2022, and a $1,000 if they are employed July 1, 2022. 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.. Both of which will have a negative impact on those who retire after June 30, 2022. For the average pensioner, receiving $39,887 per year, the COLA increase would amount to an annual increase of $1,435.92. We talked to BestReviews nutrition expert, Molly Bremer, about her favorite whole grains and how to use them. Thats when more stringent retirement benefits ordered as part of a 2017 labor concessions deal take effect. His proposal includes $1,000 bonuses in October and October 2022 for state workers. Ned Lamont asking union employees to forgo the raise amid record high unemployment and a growing state budget deficit caused by the coronavirus. Opinion: Gov. How much money does the state have to spend on programs? It also calls for a 0.5% raise for employees with . A cost of living adjustment is a change in ones retirement benefit to account for increasing prices caused by inflation. The raises will cost the state $13.3 million and the bonuses $2 million. The new . Though the list of reforms may be exhausting to review, it is far from exhaustive! 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. At issue are raises and bonuses for 35 bargaining units that negotiated tentative contracts earlier this spring with Gov. As a There are a few strategies one can take if they are thinking about retirement. The state is facing a projected general fund deficit of $443 million and a Special Transportation Fund deficit of $99 million for the fiscal year that just ended, according to the state Office of Fiscal Analysis. Not this weeks data release showing that the median American household saw its income fall 2.9 percent last year while Connecticut state employees got a 5.5 percent wage increase. The non-unionized managers will receive a one-time bonus of $2,000 and 7.5% in wage increases, including a 3.5% cost-of-living increase and up to 4% annual increments. Within Tier 1 there are Plans A, B, and C which are based on your annual salary. While unions and Lamont argue the raises and bonuses will help stem a surge in state employee retirements, Drescher isnt buying it. Required fields are marked *. Your email address will not be published. They arent in psych hospital beds. Josh Geballe, the states chief operating officer and commissioner of the Department of Administrative Services, said state agency heads have found it difficult to promote top performers in their departments because the employees would either have to take a pay cut or worry they wont be afforded the same prospective increases as those in bargaining units. CT Mirror. A wave of state employee retirements is expected in the coming months, resulting in an "unprecedented" loss of knowledge and skills, some officials say. For some of Connecticuts highest paid pensioners like Jack Blechner, a former UConn Health Center physician who received $342,325.14 in 2020, the COLA amounts to an additional $12,323.70 per year. 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 that about three-quarters lean toward retirement. Budget panel endorses raises, bonuses for CT state workers Full legislature expected to vote before May 4 by Keith M. Phaneuf April 18, 2022 @ 1:08 pm Rob Baril, the president of SEIU 1199,. But Osten said the agreements are essential to maintain a state workforce that is at its smallest size since the 1950s, an argument Lamont has made as well. Behind him to the left is Sal Luciano, president of the state AFL-CIO. Ned Lamont contracted with the Boston Consulting Group for a report of how to increase state government efficiency. State Senate Republican leader Len Fasano also asked unions to hit pause on their scheduled raise, which will cost the state $119 million in the general fund and $15.3 million in the special transportation fund. I stand in awe of my colleagues. Some Republicans in the House raised concerns about the bonuses, noting how state workers could still retire even after receiving the bonuses. Retirees that qualify for Medicare are currently reimbursed for the full standard Medicare Part B premium by the State. Connecticut Public Radio | This not only increases their pension benefit, but also gives said service members the potential to retire earlier. 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. Retired Connecticut state employees will see a substantial bump to their pension payments as a result of increasing economic inflation. Most state employees would get a $4,500 raise in the first year of the budget. For example, an employee earning 50,000 may receive a $2,500 pay increase resulting in . 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. Now is the time to honor state employees sacrifices over the years, said Emily Bjornberg, a senior consultant with the state Office of Higher Education and vice president of Local 1588 of the American Federation of State, County and Municipal Employees. They would then get the same increase on July 1, 2022 and again on July 1, 2023. 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%. March 17, 2022 Veterans Pay Raise Hiring The Veterans Affairs Department is seeking more authority to boost pay for its employees and hire new ones faster, while also vowing to offer. 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. The $2 billion agreement also includes special lump-sum payments of $2,500 for active employees whove been on the job since March 31 and $1,000 for those employed as of July 15, 2022. Meanwhile, for the 170,000 K-12 employees, a $2,000 bonus is on the way before June 30. Hurley. Your donation today will allow us to continue this work on your behalf. 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 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. When you retire, your employment checks stop, leaving you with less sources of income. 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. 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. They also propose a permanent lowering of the income tax so middle-class families can save $750 a year. 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%. The deal is now final since the state Senate and House approved it. Retired state employees and retired teachers. Marc was a 2014 Robert Novak Journalism Fellow and his work has appeared in The Federalist, American Thinker, The Skeptical Inquirer, World Net Daily and Real Clear Policy. 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. 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. With more than $95 billion in unfunded retirement benefit obligations and bonded debt, Connecticut owes more per capita than most other states. The current procedure allows retirees to be eligible for a cost of living adjustment anywhere between the first 9-15 months with an average of 12 months. Part-timers would be eligible for pro-rated bonuses. Ron DeSantis has been a staunch advocate for police officers and has pushed for bonuses for that group. Cooper also recommends spending $860 million for pay incentives and raises for the state employees. Marc has a Master of Fine Arts degree from Western Connecticut State University. Livingston and Jeffrey Beckham, Lamonts budget director, said the deal is more economical than many realize. Andrew Cuomo delayed a 2 percent raise for state employee raises for 90 days. This news story is funded in large part by Connecticut Publics Members In addition, the state budget would increase the minimum wage to $15 an hour for those workers. Gov. Lamonts predecessor, Dannel Malloy, once boasted to a union gathering, I am your servant. Lamont is also in public (union) service, willingly or not. You will see that each tier increases the normal retirement age as we continue to see improved medicine and longer life expectancies. What elements of the cost of living adjustment are changing? Therefore, if you are retiring before age 65 and after the July cutoff, then you will be subject to increased premiums. Lamont, who said that in June 2020 when asked about the pay raise to take effect just days later on July 1. Wilton Selectwoman Kim Healy called the cost of the raises and bonuses shocking and warned taxpayers wont appreciate these contracts. 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. 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. 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. It includes continuing the 25-cent cut in the gas tax, a cut in the sales tax, rolling back the trucker tax, and putting in place a $200 property tax cut for all homeowners. From there, you can test a few different scenarios in the calculator using higher salaries and/or more years worked. If you are single, you can check out the single life annuity (likely the best) or a period certain option. We hope their support inspires you to donate so that we can continue telling stories that inform, educate, and inspire you and your neighbors. Howard Drescher of Mansfield, whose daughter has struggled throughout her adult life with mental illness, said the nonprofit community agencies that the state relies on to provide most of its social services cant take another fiscal hit. The tipped wage would rise to $6.75 from $3.75 over the same time period. 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. A salary increase of a specific dollar amount distributed across pay periods. The largest change is the elimination of the minimum annual Cost of Living Adjustment (COLA) for pension benefits and delaying a retirees first COLA until 30 months after retirement. In addition, $23 million has been set aside . 5 The Senate bill contains language providing for a "similar" raise in the second year, based on a Personnel . 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. 1998 - 2023 Nexstar Media Inc. | All Rights Reserved. Marc can be reached at, Connecticut saw a 1,600 decrease in nonfarm industry positions in December, while November private sector gains (3,300) were revised down [], Eviction cases in Hartford and Bridgeport have remained far below historical averages since the Supreme Court overturned the federal eviction []. For more information, see Requirement for Proof of COVID-19 Vaccination for Air Passengers. Retired teachers and state employees who have been on the TCRS retired payroll for at least 12 consecutive months as of July 1, 2022, will receive a 3-percent cost-of-living adjustment, the highest increase available under laws governing TCRS. The managers who will receive the raises include division heads at state agencies, as well as commissioners and deputy commissioners. The raise was negotiated as part of a 2017 agreement between the state and the State Employees Bargaining Agent Coalition. The estimated payment benefit puts you at an advantage for retirement as you can determine if the amount is where you want it to be. 3 Connecticut . "But this is also a unique situation where state employees did extraordinary work during a paradigm-altering pandemic, inflation has concurrently increased, and the state workforce could potentially undergo significant changes due to retirements and uncompetitive wages.". CONNECTICUT Thousands of state employees received a scheduled raise Wednesday despite Gov. 10:27 pm, When will REtirees see the 6% in pensions im tier 2, TO vinny, you get The first increase 9 months after you retire, 60% of CPI W. Private-sector employees can only dream of having that, said Sen. Henri Martin, R-Bristol. 4:04 pm. Julia Bergman is a reporter with Hearst Connecticut Media Group. Currently, if you are subject to IRMAA then the State pays the full amount so you will not have any out of pocket costs. They are over-extended and fed up, and who could blame them? she said. 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. 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