But two union leaders say they see the states expectations of a significant retirement wave as well-founded. The agreement includes: 2.5% general wage increases in each of fiscal years 2022, 2023, and 2024. Virtually everyone in the state knows the situation and feels it is unfair. It is cloud-based, lessening the states reliance on servers, improving security and taking a step toward the ultimate goal of easing the sharing of data and documents among agencies. 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 . Union leaders say the workforce is ready, if wary. 13 Weeks . 1 Killed, Child Critically Injured In Major Highway Crash: CT News, Meteorologist Leaves TV News To Take Over Family Business: CT News, 3 Soldiers Killed After 2 U.S. Army Helicopters Crash In Alaska. Geballe said the new administrations job is to support, broaden and accelerate those changes. Lamont, who said that in June 2020 when asked about the pay raise to take effect just days later on July 1. The full General Assembly is expected to vote on it as early as this week. What tax reform proposals will there be? Ned Lamont in Hartford on May 3. The easiest way out of the crisis is to keep employees on board by offering them generous pay and benefit incentives. Negotiators will meet again to determine raises after the time period. Connecticut is facing pressure from the private sector, municipalities and other states for its workers, Osten said, adding that the pandemic has made many state jobs less attractive. Does not automatically renew. You'll enjoy reading CT Mirror even more knowing you publish it. The contracts allow workers to accept the $2,500 extra payment and still retire before July 1. 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. Geballe is no stranger to bureaucracies and the opportunities, challenges and necessities of wrenching change: He spent 11 years at IBM, which employs 350,000 people worldwide and preaches that the world is in the midst of a fourth industrial revolution, a convergence of new technologies powered by cloud computing. Those who challenge government actions for the right reasons could be forever barred from political office unjustly by this law. The bonuses, the GOP argued, are hardly the key to retaining workers, as the governor and other Democrats claim. Those who challenge government actions for the right reasons could be forever barred from political office unjustly by this law. 2016 CT.gov | Connecticut's Official State Website, regular building a betterand more civilConnecticut to live, work, and play. Watching is one of those who spoke against it, Sen. Craig Miner. 4:04 pm. The agreements, which unions ratified earlier this spring, are retroactive to the start of this fiscal year, which began last July 1. This final increase may pose concerns for small businesses and non-profit organizations operating in the state. Access all Premium Content and the E-Edition for 1 day. Fazio cited a study by the American Enterprise Institute, which found that Connecticut state employees on average are paid 5.6 percent less in salary than a private sector employee with similar qualifications. The states robust, short-term fiscal position is a sugar high that will pass when the federal stimulus money goes away, ODea said. 13 Week Package - $38.87 / 13 Weeks. 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. SEBAC employees who are employed before March . "I come out of the private sector. By 2020, the state paid $2.2 billion to 55,348 retirees. Critics also balk at the cost. CT Mirror is a nonprofit newsroom. 4.28.23 We are LIVE with our 11 am/CT. Retired state employees now get annual cost-of-living adjustments: a minimum of 2 percent and a maximum of 7 percent, depending on inflation. 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. But more than that, this is a necessary contract so that we can hold onto the best and brightest., This contract gives the state flexibility when hiring the most high-need jobs, recognizes the incredible institutional knowledge on our team, and the work state employees have done throughout the pandemic, said Lamont spokeswoman Lora Rae Anderson. 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. Thirty percent intend to leave the state upon retirement. The raises do not apply to employees in the legislative and judicial branches or higher education. 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Our economy has grown at one of the slowest rates in the nation for the past decade, and we are getting outpaced year after year. 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. The raises will cost the state $13.3 million and the bonuses $2 million. Were losing some of our best and brightest as they seek other parts of the country where its easier to make a living. 1 Week Subscription - $2.99 / 7 Days. We had more people employed in the private sector in 2007 than we do today. The best long-run thing for the state pension system is to have inflation just at or above 2%. Gusty winds add new twist to brush fires in CT, officials say, What's next for the nuclear waste that's been in CT for 50 years, Building emissions are a key climate change contributor in CT, After decades in unmarked grave, CT homicide victim put to rest. State Employees Bargaining Agent Coalition. Your email address will not be published. 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. The bargaining units ratified the agreement earlier in the week, and it now it heads to the state legislature for consideration. If you have employees affected by the . To be prepared to comply with this change, all employers should do the following prior to June 1: . Were hemorrhaging workers right now, DAgostino said. So, it is a safe bet that Lamont will sign a juicy new wage contract with SEBAC. The deal is now final since the state Senate and House approved it. Its also imperative that we do so. Republicans countered Friday that the raises and bonuses far outstrip what households in the private sector are receiving. The budget is expected to be a record high for the 2023-2024 fiscal year, which will start July 1. Fazio said it reflects the pull unions have on state government, and that taxpayers will end up footing the bill. 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.. They also cover the next two fiscal years and potentially 2024-25 as well. Ned Lamont and president of state's network of community colleges square off in showdown over state funding. Though the list of reforms may be exhausting to review, it is far from exhaustive! "Today is Tax Day People want to know where their tax dollars are going, said Kim Healy, a GOP Wilton selectman running for the Connecticut House of Representatives. The study also found that Connecticut state employees are compensated 33 percent more than a similar private sector employee when pension, healthcare and other fringe benefits are taken into account. And that total is expected to grow considerably between now and July 1. 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. The Democratic-controlled Senate voted 22-13 along party lines to approve the contracts, which cover about 46,000 workers the bulk of the state's workforce. Thats because state governments coffers are flush with cash as never before. 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. Both are signs of things to come in state government or more precisely, things to disappear. Ideal timing for the announcement would be between Christmas and the New Year. Ned Lamont, a cable-television entrepreneur who took office on January 9 and hired Geballe two weeks later. In 2015, Connecticut paid $1.7 billion to 49,111 retirees, according to the Comptroller's Open Pension website. That is the status quo.. The formula used took 60% of the increase in the Consumer Price Index ( CPI-W) up to 6% and . Bonuses are prorated for part-time employees. Let us be clear. /. Gusty winds add new twist to brush fires in CT, officials say, What's next for the nuclear waste that's been in CT for 50 years, Building emissions are a key climate change contributor in CT, After decades in unmarked grave, CT homicide victim put to rest. Lamont hopes the extra money will slow a wave of retirements before July 1, when pension benefits drop as part of previous union concessions. Today were living in a post-COVID world, where employees and not employers are ruling the job market, said Sen. Cathy Osten, D-Sprague, co-chairwoman of the Appropriations Committee. When you do good work, you get a bonus, said Lamont. And while some criticized the bonuses, the Hamden lawmaker and others say they would save the state money over the long haul. 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. Social Security has announced that they will be granting a cost of living increase of 8.7% for 2023. It includes 2.5% raises for four straight years that would be retroactive to July 1, 2021. 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. Critics say the deal is too generous and could lead to future tax hikes. But that surge followed a nearly decade-long stretch in which state tax receipts from the same source badly underperformed. The alternatives are suboptimal. EVENT: Mark Pazniokas will sit down with Gov. State and union officials are expected to meet again in the fourth year to negotiate wages. Dannel P. Malloy takes effect. The board has voted to approve the following cost of living increase for January 2023. The contracts, which Gov. 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. State government coffers have swelled since 2018, due in large part to a robust stock market that has bolstered income tax receipts tied to capital gains and other investment earnings. Based on the statutes governing Cost of Living Adjustments (COLA) for CTRB members, the Connecticut Teachers' Retirement Board will be granting COLA as follows. 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. State law calls for equity in salary adjustments between union and non-union employees. He has been the state finances reporter at CT Mirror since it launched in 2010. 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. Youll notice when you look around here, there is no paper. Photos: Iconic Landmarks To Visit Across CT. The contracts allow workers to accept the $2,500 extra payment and still retire before July 1. font size, Human Resources Business Rules and Regulations. But Gov. The year over year increases drive up the amount paid out by Connecticut's severely underfunded State Employee Retirement System. 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. In an effort to mitigate the potential loss of thousands of state employees, Gov. 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. 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 . 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. Julia Bergman is a former reporter with Hearst Connecticut Media Group. ThanKs Vin, Lyle Scruggs Jessica Hill / Associated Press 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. Connecticut Property Taxes In Every Town: Who Pays The Most? The [nonprofit] industry pegs the inflationary loss its taking on these payments at $460 million per year, according to the CT Mirror. DAS is now working to centralize and streamline H.R. 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. It was covered recently in goals and ideas tossed around in a brainstorming exercise, then numbered as priorities. If you value the story you just read please consider making a donation. (Sorry for the caps, wont let me shift), Hope McKiernan When that expires in 2024, the states fiscal position could turn, some lawmakers argue, particularly if the national inflation rate which topped 7% last year and exceeds 8% early in 2022 remains high. 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. Osten said the raises reflect the valuable work state employees provide daily, and particularly throughout the coronavirus pandemic.