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). Would this be what he does? 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. Ned Lamont administration to attract more people to stay and move into these jobs, and to make their salaries more in line with unionized workers. The deal is now final since the state Senate and House approved 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. It also calls for a 0.5% raise for employees with . With that in mind, there are two significant changes to the CT State Employees Pensions that will affect those who retire on or after July 1, 2022. With only 41 weeks remaining to replace retiring employees, the Lamont administration is fast approaching a severe manpower crisis. That would not be connected to the 5.38 percent figure and the $15 minimum wage in the 2022-23 state budget. Rep. Michael France of Ledyard, ranking House Republican on the panel, offered the only comment prior to the vote, saying he thought the package projected to cost $1.9 billion over four fiscal years combined was not sustainable. The Executive Branch workforce, already down 10% over the past decade, is shrinking faster as retirements surge this spring. Fazio said that it reflects the pull unions have on state government and that taxpayers will end up footing the bill. However, if you retire after July 1, 2022, then the State is going to split that additional premium with you 50/50. We promise to never sell your information or overload you with emails. and 75% of the increase above 6%, with a minimum COLA of 2%, and a maximum of 7.5%. They also cover the next two fiscal years and potentially 2024-25 as well. The time to pay the bill is now at hand, Suzio said, warning the proposed contracts would be an anchor weighing down state finances for years to come. The bill originally had a $2,550 raise for troopers. Now lets look at the changes to insurance premiums after July 1, 2022. Each of the 3.6 million residents in Connecticut rely on the critical public services state workers provide whether you are standing in line at the DMV, attending a technical school, community college or state university, getting treatment at UConn Health, driving on our roads and bridges, enjoying a state park or beach, or any of the other ubiquitous public services you will be uplifted by these fair and honorable contracts, the State Employees Bargaining Agent Coalition wrote in a statement after the Senate vote. The announcement Thursday from the governors office of the 7.5% raises comes as union workers ramp up their fight for wage increases in their new contracts, which they are currently negotiating with the state. The workers will also receive additional 2.5% general wage increases and step increases beginning July 1 and July 1, 2023. 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. (Sorry for the caps, wont let me shift), Hope McKiernan 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. The pandemic is leading many to abandon public service, union members added. 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. You will see that each tier increases the normal retirement age as we continue to see improved medicine and longer life expectancies. At a time when everyone is sacrificing so much, when jobs are disappearing around us, a small sacrifice of temporarily pausing a pay increase can go a long way, Fasano said in late April. 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. Ned Lamonts administration. 2023 The Conneticut News Project. . If the proposal becomes law, it will be the first cost-of-living adjustment for Georgia employees in 14 years, Kemp said. Ned Lamonts administration and already ratified by the 35 bargaining units involved, now heads to the full General Assembly for final consideration. (The state's minimum wage is $11.15 an hour.) Part-timers would be eligible for prorated bonuses. Morrissey Wealth Management LLC is a Registered Investment Advisor. They are our people, who we count on each day to make us safe, she said. 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. Good question Hope I cant find the answer either. Wednesdays Warrior: AJJ Foundation offers music, CT Transit bus driver injured in Rt. If you worked in CT and then decided to retire elsewhere, then the number of plans you can choose from will be more limited. Rob Baril, the president of SEIU 1199, in July 2021 arguing that state employees deserve raises. Southington: Adventure Awaits! listeners, viewers, and readers like you who value fact-based journalism and trustworthy information. Ned Lamont asking union employees to forgo the raise amid record high unemployment and a. The full legislature is expected to vote on the tentative wage agreements before the regular 2022 General Assembly session closes on May 4. Unions granted concessions deals in 2009, 2011 and 2017 to help balance state finances. 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 raise includes a 3.5 percent pay increase and a two percent annual step increase. "It has been an incredibly challenging [&hellip. The $2,000 payment will only be available to employees who were hired or appointed before June 30, 2018. From there you would input your highest three years of work history, and the number of years that you have worked for the State including any years you may be eligible to buyback. Alabama Gov. President Joe Biden signed an executive order Wednesday detailing the federal employee pay adjustments effective in 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. The state is also hoping the increases will also attract more people to state-level management positions. Gov. Bonuses are prorated for part-time employees. 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. The long session, as non-election years are called in Hartford, will be centered around the biennial budget. Though all committees include senators and representatives, legislators must vote separately by chamber on contracts. 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. Wilton Selectwoman Kim Healy called the cost of the raises and bonuses shocking and warned taxpayers wont appreciate these contracts. Manager salaries have not kept up with union salaries so in a lot of cases you have mangers that are earning less than the employees reporting into them, said Melissa McCaw, the states budget director. 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. 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. For retirees who receive their COLAs in January, the trend was more in their favor with three years of inflation increases topping 2 percent. One source is a pension, another is Social Security, and the last depends on how much you have invested in retirement funds. Meanwhile, for the 170,000 K-12 employees, a $2,000 bonus is on the way before June 30. 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. 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). Connecticut Property Taxes In Every Town: Who Pays The Most? Similar deals would pass automatically if the legislature didnt take action in the past, but a 2017 law requires approval from both chambers. October 25, 2021 @ Republican House Leader Vincent Candelora of Branford, in a statement following Thursdays announcement questioned how the raises will affect not only current contract talks with union negotiators for rank-and-file workers who want more pay, but also the work of a new task force charged with studying this issue and reporting back to the legislature., Candelora attributed the structural gulf between non-union managers and unionized employees to a vicious circle that's fueled by people at the Capitol whose baseline position is to give state employee unions everything they want.. It also describes steps the state is taking to . Labor agreed to a 2.5% cost of living increase only because lump sum bonuses were offered, he said. 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. Enter your email to receive a copy of our 7 Step Retirement Guide for Connecticut State Employees! Thats because state governments coffers are flush with cash as never before. Most plans require at least 25 years of service with the State. For more information, see Requirement for Proof of COVID-19 Vaccination for Air Passengers. State tends to be very follow what it says exactly so if we are supposed to get 3 raised then they will process 3 raises one after the other most likely, not one 7% raise. 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. Morrissey Wealth Management will never sell your information. UnofficialCaStatePS 2 yr. ago I genuinely wonder if they would do it that way though. State and union officials are expected to meet again in the fourth year to negotiate wages. The Associated Press contributed to this story. Gov. CONNECTICUT University of Connecticut men's basketball head coach Dan Hurley topped the list of highest-compensated state employees in 2021 with $3.6 million in total compensation. 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. But Shirley Watson, a unionized clinical social worker for the past eight years at the MacDougall-Walker Correctional Institute in Suffield, noted the relative affluence of many who oppose the raises. Because the state is facing a massive retirement wave, which, if mishandled, could cripple state government. CONNECTICUT Thousands of state employees received a scheduled raise Wednesday despite Gov. You can do that when you dont have to run the ship. 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. 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. It is unsustainable and, more plainly, unjust. "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. The agreements are retroactive to the start of this fiscal year, which began July 1, 2021. Another benefit of continuing to work is that it shortens your retirement horizon putting less pressure on your income in retirement. Since 1997, the State has used a formula to calculate the minimum cost of living adjustment. Therefore, it really depends on your situation and if you are unsure or need help then it may be a good idea to get in touch with a financial planner. Andrew Cuomo delayed a 2 percent raise for state employee raises for 90 days. 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. We talked to BestReviews nutrition expert, Molly Bremer, about her favorite whole grains and how to use them. This news story is funded in large part by Connecticut Publics Members
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. Missouri Gov. A salary increase of a specific dollar amount distributed across pay periods. 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. This is a carousel. 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. While annual retirements usually range from 2,000 to 2,500 per calendar year, more than 3,400 state employees have either retired or filed their written intentions to do so between January and March 31, 2022, alone. In 2015, Connecticut paid $1.7 billion to 49,111 retirees, according to the Comptrollers Open Pension website. This way you could avoid paying the recently increased premiums for your insurance. Tier 2 is a non-contributory defined benefit retirement plan (for most members), and those employees that were hired between July 2, 1984 and June 30, 1997, while Tier 2a is a contributory defined benefit retirement plan for those hired between July 1, 1997 and June 30, 2011. Thn 5, x hong tn,th x qung yn, tnh qung ninh. 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. 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. 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. 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 . Brief summary of Connecticut state income tax: subject to 0.5% Paid Family and Medical Leave. 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. 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. 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. Kay Ivey, a Republican, has called for upping state employee and teacher pay by 4%. To contrast, it may be a good time to retire for a 62-63 year old who is collecting Social Security with significant savings in other retirement plans. Livingston said the unions were prepared to seek a general wage increase of 3% or more and that an arbitrator already had approved a 3% bump for the current fiscal year. CT Mirror. 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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. Please reload the page and try again. 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. So, if the other guy was governor, whos running? Lamonts administration predicted in May that the current fiscal year would have a $2.3 billion shortfall. Only limited exceptions apply. 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). What elements of the cost of living adjustment are changing? Theres a pro-rated bonus for part-time employees. For example, if the CPI-W does not increase, then they would not receive any cost of living adjustment. "It has been an incredibly challenging year, but today is a good day for state employees," TSEA Executive Director Randy Stamps said. Ned Lamont contracted with the Boston Consulting Group for a report of how to increase state government efficiency. About 1,700 management-level state employees will receive pay raises, an effort by Gov. 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. What can be done to lower home heating bills? 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. November 3, 2021 @ 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. 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. Ned Lamont asking union employees to forgo the raise amid record high unemployment and a growing state budget deficit caused by the coronavirus. Collective bargaining units would receive raises according to whatever they have negotiated. Note: the above image is a chart for the CPI-U, not the CPI-W. The opportunities to advance students learning are endless. A cost of living adjustment is a change in ones retirement benefit to account for increasing prices caused by inflation. As many as 13,000 state employees will be eligible for retirement by July 2022, according to the state Comptroller's office. Each year includes a 2.5% general wage increase, as well as a step hike for all but the most senior workers. Ned Lamont defended raises and bonuses Tuesday that could boost state . The BCG study was supposed to facilitate a third approach. For the average pensioner, receiving $39,887 per year, the COLA increase would amount to an annual increase of $1,435.92. To that end, we have produced a new edition of our Charter for Change. Published April 21, 2022 Updated on April 21, 2022 at 2:04 pm. Ned Lamont speaks at a news conference at Connecticuts Beardsley Zoo, in Bridgeport, Conn. March 29, 2021. BCG was to help accelerate efficiency efforts, enabling the state to operate with less manpower. For the 100,000 state and university employees, it's the first day that a $5,000 pay raise kicks in. By Jessie Bur. At issue are raises and bonuses for 35 bargaining units that negotiated tentative contracts earlier this spring with Gov. 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. Salary: Legislators appropriated funds equivalent to a 1.25% cost of living allowance for state and higher education employees. Therefore, the old procedure would have provided at least two cost of living adjustments in the same time frame. The House bill . Get CT Mirror emails in your inbox daily. 2:19 pm. Retirement reduces your benefit by 5/9 of a percent for each month before the normal retirement age up to 36 months. The issue raised by representatives of the NSHE faculty alliance is that employees represented by a collective bargaining unit a union are in line for a 3 percent pay raise in 2023. Changes to state employee retirement benefits will go into effect in July of 2022 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. 3% tax rate phase-out and tax recapture for high income earners. State prisons have been a petri dish for the spread of COVID-19, added Howard, who contracted the virus in February 2020 and now takes seven medications to manage heart complications brought on by that infection. Thank you for being generous with your email. Were losing some of our best and brightest as they seek other parts of the country where its easier to make a living. Theyre in their lovely backgrounds. But the votes followed a robust, three-hour public hearing during which state employees argued the raises would help reverse a staffing crisis and also were overdue, given the many concessions unions granted over the past 12 years. 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