By 2020, the state paid $2.2 billion to 55,348 retirees. What elements of the cost of living adjustment are changing? The document would continue $2,000 raises for teachers and $5,000 raises for state employees that will begin in the separate amended 2022 budget in House Bill 910 that won final passage in the . Local SIDS Coordinators; Risk Reduction . State and union officials are expected to meet again in the fourth year to negotiate wages. According to the Office of the State Comptroller, as of November 19, 2020, there were 13,066 state employees (full-time and part-time) who are eligible for normal or early retirement before July 1, 2022. In the past 10 years, the number of management-level state employees has dropped from 2,000 to 1,400, with nearly all of them choosing to leave their posts to join bargaining units and another 60 petitions currently pending, McCaw said. Each tier system applies to employees hired in different periods of time and may include different qualifications for retirement. While we wait to see the thousands of individual and committee bills that while dominate the myriad policy debates this year, Yankee Institute is hard at work promoting free-market solutions to the problems we face from Stamford to Putnam and Mystic to Salisbury. The states top rate income tax has been raised from 4.5 percent to 6.99 percent between 2003 and 2015. Though the list of reforms may be exhausting to review, it is far from exhaustive! Hurley. Nonprofits say their state funding has grown little over the past decade-and-a-half, and since 2007, after adjustments for inflation, funding actually has fallen by $461 million. Wednesdays Warrior: AJJ Foundation offers music, CT Transit bus driver injured in Rt. According to the Office of Legislative Research in their analysis of a potential retirement wave, COLAs for new retirees will match the CPI-W during years it is 2 percent or less. DARRELL HACKETT More than 3,400 state employees have retired or have filed written intention to retire this year, but that number is expected to increase before July 1. If you are retired but not yet 65 years old, then you are not (currently) eligible for Medicare. For example, a 60 year old who is qualified to retire but calculated that money will be tight may want to continue working. There was an agreement made in 2017 with the State Employees Bargaining Agent Coalition (SEBAC) that included many changes to state employee retirement benefits. Ned Lamont speaks at a news conference at Connecticuts Beardsley Zoo, in Bridgeport, Conn. March 29, 2021. BCG documented that the sclerotic state bureaucracy takes an average of 33 weeks to hire a new employee. Get CT Mirror briefings with enterprise reporting, investigations and more in your inbox daily. 2023 The Conneticut News Project. Salary: Legislators appropriated funds equivalent to a 1.25% cost of living allowance for state and higher education employees. The Charter provides commonsense reforms to make Connecticuts government work for its residents. By Jessie Bur. Dec 27, 2021. The Senate version would spend about $2.2 billion on 5% pay raises in each year for state and state-supported local employees, including teachers, plus $1,000 one-time bonuses. This way you can figure out a combination that will provide the income you are looking to receive. Mike Parson, a Republican, has proposed raising pay for state workers to at least $15 an hour. Most plans require at least 25 years of service with the State. Prior to joining CT Mirror Keith was State Capitol bureau chief for The Journal Inquirer of Manchester, a reporter for the Day of New London, and a former contributing writer to The New York Times. Lamonts administration predicted in May that the current fiscal year would have a $2.3 billion shortfall. 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. The $2,000 payment will only be available to employees who were hired or appointed before June 30, 2018. Get CT Mirror emails in your inbox daily. The 2002 Changes will increase the amount deducted from the retirement benefits of certain employees to pay for state-provided retiree health insurance. If you plan to retire prior to turning 65 then doing it before the July cutoff will allow you to lock into the lower premiums. "The state has to live within its means just like the families and businesses we serve and represent," Lamont said in a statement when the deal was announced. Cooper also recommends spending $860 million for pay incentives and raises for the state employees. There is also a large group if tier 1s who receive 3% guaranteed, no inflation adjustments. Gov. This news story is funded in large part by Connecticut Publics Members Connecticut holds $3.1 billion in its rainy day fund, equal to 15% of annual operating costs the maximum allowed by law. 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. Behind him to the left is Sal Luciano, president of the state AFL-CIO. Thats when more stringent retirement benefits ordered as part of a 2017 labor concessions deal take effect. CONNECTICUT The state Senate gave final approval to the raise and bonus package for state employees. Without an adjustment, inflation would lower the utility of the payment and you would not be able to buy as much as before. They are our people, who we count on each day to make us safe, she said. 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. It seems the safest short-term solution is to declare the area off-limits for humans at least for the near-term future, pending additional studies. By 2020, the state paid $2.2 billion to 55,348 retirees. As we noted in a report andCT Mirrorop-ed last year, the debate over whether were in a national recession really misses the point for Connecticut residents. Privacy Policy. 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. Give today at any amount and join the 50,000 members who are Private-sector employees can only dream of having that, said Sen. Henri Martin, R-Bristol. Money Wisdom: Should I Retire in Connecticut? The Consumer Price Index for Urban Wage Workers and Clerical Workers known as the CPI-W increased 6 percent between July of 2020 and July of 2021, according the Bureau of Labor Statistics, with the price of nearly everything increasing substantially in recent months. Part-timers would be eligible for prorated bonuses. The best long-run thing for the state pension system is to have inflation just at or above 2%. The Democrat-controlled Appropriations Committee approved the contracts in two votes, both largely along party lines, with almost no debate. Tier 1 is a contributory defined benefit retirement plan for those hired on or before July 1, 1984. Retirees would get 2% more in pension benefits each year and a 2% cost-of-living adjustment. CT Saw Jobs Lost in December, Revised Private Sector Gains from 3,300 to 300, Evictions remain significantly down in Bridgeport, Hartford after end of eviction moratorium, New Voting Bills Would Allow Ranked Choice System; Prisoners and 16-year-olds to Vote; Expansion of Early Voting, The Problems with Ranked Choice Voting Proposals in CT, The Federalist: Connecticut Lawmakers Move To Block Parents From Seeing Teacher-Student Communications, Punishing the Good Guys because there are Bad People, Public Sector Job Growth Beats Out Private Sector In July, CTs Growing Problem: Population Trends in the Constitution State, Connecticut Has One of the Highest Tax Burdens (Again). However, if you retire after July 1, 2022, then the State is going to split that additional premium with you 50/50. He has been the state finances reporter at CT Mirror since it launched in 2010. 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 state's minimum wage is $11.15 an hour.) The Connecticut State Legislature will begin its 2023 session on January 4thand will adjourn on June 7th. Gov. Inevitably, it will be highly unpopular, so the announcement will be buried as deeply as possible and spun like a top by Lamonts spokespeople. The tipped wage would rise to $6.75 from $3.75 over the same time period. 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. Keith has spent most of his 31 years as a reporter specializing in state government finances, analyzing such topics as income tax equity, waste in government and the complex funding systems behind Connecticuts transportation and social services networks. The contracts allow workers to accept the $2,500 extra payment and still retire before July 1. What tax reform proposals will there be? Meanwhile, for the 170,000 K-12 employees, a $2,000 bonus is on the way before June 30. Tier 1 Real Estate has tips to, New England Spine and Disc: Non-Invasive Pain Relief, Avelo Airlines at Tweed: High Scores for Flight Reliability, ratified by the various unions last month, 11 sleek fire pit tables that put out a lot of heat, 12 cute sweater dresses that are surprisingly affordable, Nutritionist explains what heart-healthy grains are, Nearly half of US murders going unsolved, data show, WATCH | Educating Connecticut: The Town Hall, 8 years for man who trafficked guns in New Haven, Dinosaurs in New England: Life-size animatronics, CT Transit bus driver injured in Rt. The Insurance Department, which has 25 fraud investigators, will run its $245,000 of pay-raise money through Schedule C, spokeswoman Stephanie Goodman confirmed. Enter your email to receive a copy of our 7 Step Retirement Guide for Connecticut State Employees! In other words, the State will pay the full standard premium, plus half of any extra. Collective bargaining units would receive raises according to whatever they have negotiated. For those who qualify for a pension, we would recommend going on the State of Connecticut website to get an estimate of what your pension will be. If you are single, you can check out the single life annuity (likely the best) or a period certain option. For retirees who receive their COLAs in January, the trend was more in their favor with three years of inflation increases topping 2 percent. Therefore, if you are retiring before age 65 and after the July cutoff, then you will be subject to increased premiums. Good question Hope I cant find the answer either. 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. So, more outsourcing would compound the squeeze on the nonprofits, either rendering their condition even more precarious or necessitating a significant increase in their reimbursement rates. 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. ThanKs Vin, Lyle Scruggs CT Mirror. Required fields are marked *. Ned Lamonts administration. 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. 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). Gov. Bonuses are prorated for part-time employees. The bigger pay bump for troopers across the state has flowed . Carney's budget plan was built off DEFAC's December revenue estimate of $4.765 billion for FY 2022. Labor agreed to a 2.5% cost of living increase only because lump sum bonuses were offered, he said. If eligible, your pension benefit will continue to grow, and youll have more money to put into one of the state benefits plans such as the 403b or 457 plans. We have you covered, check out my Podcast 2 Upcoming Changes for CT State Employees Pensions #50 on my Website, Spotify, or Apple Music! The legislatures Appropriations Committee endorsed significant raises and $3,500 in bonuses Monday for about 46,000 unionized state employees. Critics particularly have attacked the bonuses, noting that workers could accept the $2,500 extra payment and still retire before July 1. A multi-year labor agreement recently ratified by 43,000 unionized Connecticut state employees faced a key vote . 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. How will schools be implementing to curriculum requirements? As we go into a time period where we expect a significant number of retirements, we want to make sure that we can attract and retain top talent across all of our agencies whether in management or non-management positions, McCaw said. The increases, part of a four-year package negotiated by Gov. 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. Selling your home? Compare that, she suggested, with the many in need of rely on state services currently at risk by shrinking staff levels. Hartford lawyer Daniel Livingston, chief negotiator for the State Employees Bargaining Agent Coalition, noted the latest contracts are the first wage deals since before the recession of 2007-2009 not negotiated amid a budget crisis. The bill passed in the House on a vote of 96 to 52. state income tax ranges from 3% to 6.99%. Republicans say 18 states, including two run by Democratic governors, are suing the Biden administration to get rid of the cap, and Connecticuts refusal to do the same is not fair. In a contributory plan the employee pays a portion of his/her regular salary towards the pension while the employer fully covers the plan in a non-contributory. Fiscal conservatives and other critics of the deal were equally passionate, arguing it far exceeded the pay hikes being granted in the private sector and also would hamstring state finances for decades. Concerns over energy prices, inflation, and general cost of living continue to dominate the headlines and the threat of a recession hovers over economic forecasts. More than 40,000 unionized state employees would receive $3,500 each in . 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. Dannel Malloy included a provision to change the COLAs for state employees who retire after July 1, 2022. The House, where Democrats also hold a majority, approved the package 96-52 on Thursday. Were losing some of our best and brightest as they seek other parts of the country where its easier to make a living. Note: the above image is a chart for the CPI-U, not the CPI-W. 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. Lamonts predecessor, Dannel Malloy, once boasted to a union gathering, I am your servant. Lamont is also in public (union) service, willingly or not. . 44 crash, Over 100 animals rescued, 7 found dead on Conn. farm, Bloomfield police follow footprints to shooting suspect, Avon police warning homeowners after string of burglaries, Old Saybrook family grateful for Rare Disease Day, National charter school org honors late Rep. Williams, Eyedrops infected Conn. nursing home patients, Unofficial special election results for CT House, Milford school brings galaxy to classroom with planetarium, Mohegan Tribe opposes current CT river renaming bill, Do Not Sell or Share My Personal Information. 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. 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. Keith is a graduate of and a former journalism instructor at the University of Connecticut. All Rights Reserved. If you dont have enough money coming in, it may be beneficial for you to forgo the cost-of-living adjustment and retire after July 1, 2022. Use Next and Previous buttons to navigate. Lamont Nominates Bryan Cafferelli As Consumer Protection Commissioner, CT Native, 27, Killed In Apparent Terrorist Attack In Israel: CT News, Wild 2-Car Shootout Involving Teens Locks Down Schools: PD: CT News, 3 Brentwood HS Students Make PBS '20 Under 20' List Of Storytellers, Brothers Kill Groom On Wedding Night: Authorities, Carjackers Steal More Cars Many With Kids Still Inside, Naperville Family Opens Home, Hearts To Welcome Kids Who Lost Parents, Dog Abandoned With Handwritten Note 'A Good Boy,' Loves To Hug & Kiss. The deal is now final since the state Senate and House approved it. Employees retiring before July 1 will receive their current benefits that include a guaranteed minimum 2% cost-of-living increase in their annual pensions, as well as free health care premiums. 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. 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