participating pharmacy. Therefore, every member who retires after the Effective Date will be eligible to receive his or her first COLA after exactly thirty months of retirement.3. If so, can I avoid that harm by retiring before the Effective Date? 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. For the Leave Donation form please click here. 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. Note 1: Actual healthcare premium percentages are prorated by months. Connecticut has a record-setting $3.1 billion in its rainy day fund and is on pace to wrap this fiscal year with an equally unprecedented $2.7 billion surplus. Employees who have retired under an Early Retirement pay different percentages for their healthcare coverage. The budget announced by Gov. Its a matter of whether we can afford it.. 01. The retiree is then transitioned into the states custom group Medicare Advantage Plan, which is known as the MAPD. Employees who are Medicare-eligible at the time of their retirement are enrolled in the MAPD as of their retirement health enrollment date. The CT Mirror first reported on March 8 that Lamont had negotiated new wage agreements with roughly 43,000 unionized state employees covering the bulk of the states workforce. The amount of the IRMAA varies, based on an enrollees income over the threshold amount. The only thing the middle class is getting here is the bill.. Each employee should also give consideration to how long he or she wants to continue working; how he or she wants to spend the next few years; where the employee wants to live; what other obligations he or she has; and whether he or she will have additional sources of income in retirement. Governor Lamont justified these bonuses as a means to retain workers, House Minority Leader Vincent J. Candelora, R-North Branford, said. The states robust, short-term fiscal position is a sugar high that will pass when the federal stimulus money goes away, ODea said. Whoops! The agreement would. Using high-value Anthem and United Healthcare/Oxford providers and facilities - those that offer higher quality care at lower costs - saves money for you and the State. Couple that with two years of a coronavirus pandemic and inflation that topped 7% in 2021, and keeping state workers has become challenging, he said. 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, saves the state about $150 million over the next decade. Copyright 2002 - 2021 Office of the State Comptroller, https://www.osc.ct.gov/empret/tier2summ/workshop/disclaimer.htm. The ultimate effect of the changes to cost-of-living adjustments cannot be predicted, because it will depend on future rates of inflation. . These changes (which this document community-supported public media service, Connecticut Public has relied on donor support for more than 50 years. It seems that JavaScript is not working in your browser. This deal was billed as a retention effort, said Rep. Laura Devlin, R- Fairfield, who is campaigning for lieutenant governor as the running mate of GOP gubernatorial contender Bob Stefanowski of Madison. Depending on the members date of retirement, therefore, a member must wait between nine and fourteen months to receive his or her first COLA. The payments are made through deductions from the employees retirement benefits (or billed directly to the retiree should they not receive a monthly pension benefit). Gov. 02. But the Democratic governor also confirmed that workers could accept $2,500 of the $3,500 in bonuses offered under a tentative contract deal and still retire before more stringent pension benefits take effect on July 1. For employees in the Alternative Retirement Program (ARP) - for higher education employees - the employer contribution to ARP will decrease by .75 percent. Retired employees of the State of Connecticut who have satisfied the eligibility requirements to qualify for retiree healthcare and prescription coverage as a benefit may opt to enroll in medical and prescription coverage through the states self-insured retiree health plan.2 Eligible dependents of the retirees family may also receive coverage through that plan. This means Action Reason Codes. The pay increases will appear in the March 31 paychecks of state workers. 2022 12:01 am . Your donation today will allow us to continue this work on your behalf. The 2022 Changes will affect the cost of retiree health insurance in two different ways. 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. It also includes fringe costs for each employee (fringe includes health care, retirement benefits and other benefit costs paid by the state on behalf of employees, as well as catch-up payments to pay down unfunded liabilities*). 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 Employees Bargaining Agent Coalition announced Friday. The SEBAC 2017 Agreement increases active employee pension contributions by 1.5 percent of salary. Doctors 40 Hour MD Pay Plan with 3 Additional Steps Effective July 1, 2022. This means smart health care shopping can help you pay less when you need care. Check Schedule View the mailing dates for retiree payroll checks for the current year. Corporate Support: Advertising & Sponsorship, saves the state about $150 million over the next decade. Because state employees must retire on the first day of a month that occurs after the termination of their employment, all employees who retire on or before July 1, 2022, will have terminated employment before the rules go into effect. 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. To understand the 2022 Changes, it is necessary to understand both the processes created by the SEBAC agreements and certain basic structures of the states benefits for retirees. Ned Lamont says are essential to help stem a surge in state employee retirements, are expected to be ratified Friday by the Senate, where Democrats also hold a majority. 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, Democrats hold three CT House seats in special elections, Lamont crosses aisle, nominates Bryan Cafferelli as DCP boss, State Employees Bargaining Agent Coalition, Proudly powered by Newspack by Automattic. Ned Lamont says are essential to help stem a surge in state employee retirements, are expected to be ratified Friday by the Senate, where Democrats also hold a majority. 3 Please note that in order to qualify for an annual SERS COLA, a member must complete at least 10 years of actual state service or transition directly into retirement. A copy of that grid is attached to this memorandum as Appendix A. Negotiators . If over 25, use 25. Will these changes have a negative effect on my retirement? The contract covers the four-year period from July 1, 2021, through June 30, 2025. You'll continue to pay nothing if you receive care at a Preferred lab! Ned Lamont's administration, according to a settlement document obtained by the CT Mirror. All Rights Reserved. More than 3,400 state employees have either retired or filed their written intentions to do so between January and March 31 alone, and that total is expected to grow considerably between now and July 1. "The cost-of-living adjustment for state employees that is included is an incredible step in the right direction. CA 40 Hour Pay Plan Effective July 1, 2022, CC 36.25 Hour Cadet Pay Plan Effective July 1, 2022, CJ 40 Hour Lump Sum Chart Effective July 1, 2022, CJ 40 Hour Pay Plan Effective July 1, 2022, CL 40 Hour Pay Plan Effective July 1, 2022, CN 40 Hour Pay Plan Effective July 1, 2022, CO 36.25 Hour Pay Plan Effective July 1, 2022, CP 40 Hour Pay Plan Effective July 1, 2022, CR 40 Hour Lump Sum Chart Effective July 1, 2022, CR 40 Hour Pay Plan Effective July 1, 2022, CT 40 Hour 10 month Pay Plan Effective July 1, 2022, DM 40 Hour Pay Plan Effective July, 1 2022, Doctors 40 Hour MD Pay Plan with 3 Additional Steps Effective July 1, 2022, DX 35 Hour Dentist Pay Plan Effective July 1, 2022, DY 37.5 Hour Dentist Pay Plan Effective July 1, 2022, CTDOL.state.ct.us. The 3,416 retirements and planned retirements combined is up 10% from just one month ago. In addition, full-time workers would receive a $2,500 bonus in mid-May and another $1,000 bonus in mid-July. The. The cost of the current agreement to the state is $1.87 billion but that figure will likely rise as it assumes zero raises in the fourth year. 1 Because state employees must retire on the first day of a month that occurs after the termination of their employment, all employees who retire on or before July 1, 2022, will have terminated employment before the rules go into effect. The first change is a change to the portion of the premium for state-provided health insurance that must be paid (through deductions) by retirees who (i) have taken a Normal Retirement and (ii) are not yet eligible for Medicare. Effective July 1, 2023, State regular and contractual employees will receive a 2% COLA. Search for state employees by name or agency. the future benefits accruing to . 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 Gov. Its a matter of whether we can afford it.. If you are seeing an in-network provider, it is the provider's responsibility to submit all necessary information during the medical necessity review process. Additionally, COLAs will no longer be limited to January and July. 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. 6. (CT:PER-893; 12-11-2017) (State Only) (Applies to Foreign Service Employees Only) It is the policy of the Department to correct an error or prevent an injustice by providing an increase to a higher salary rate within a class pursuant to a recommendation of the Foreign Service Grievance Board The percentage each employee must pay is the lesser of 25% of their monthly pension or a value based on a combination of the employees years of service and his or her age at the time of retirement. State finances also are being supported this fiscal year and next by about $3 billion in emergency federal pandemic relief. An arbitrator had already awarded some unions a 3% general wage hike for 2021-22 before Lamont and labor negotiators settled on a smaller cost-of-living bump and bonuses. Connecticut has more per capita debt than most other states, and those long-term obligations are expected to put considerable pressure on state finances for decades to come. . Joseph Horvath, the state's chief negotiator, wrote to the union this week, saying its proposals would have cost $2 billion over three years and were "simply are out of touch with the reality of. Please note, however, that only employees whose income is above a certain threshold amount must pay the IRMAA. Equally important, the amount the state pays to employees should be only one of several considerations in retirement planning. The hourly base pay of a Step 1 GS-11 employee is $26.72 per hour1 . Connecticut State Unemployment Insurance (SUI) As an employer, you're responsible for paying SUI (remember, if you pay your state SUI in full and on time, you get a 90% tax credit on FUTA). The state had 2,056 workers retire two years ago and 2,656 in 2021. The SEBAC 2017 Agreement includes important changes to active employee health care benefits and payroll deductions related to both pension and health care benefits. Compensation Schedules, JULY 1, 2019. Employees who have retired under a Normal Retirement are responsible for the following portions of their premiums: From 0% to 1.5% for hazardous duty retirees and retirees with 25 or more years of service; from 1.5% to 3% for all others. Lamont, a Democrat, called it a responsible and fair deal for our unionized state employees. He said it takes into account increased inflation and a state workforce that is bracing for a significant number of retirements by providing competitive wages. These are deeply personal questions, but each employee should be encouraged to consider them. changes to the terms of retirement for all state employees, including members of the State Employees Retirement System (also known as "SERS"). When any Connecticut retiree becomes eligible for coverage under Medicare (either because the retiree has reached age 65, or because he or she has become eligible for Medicare due to SSDI), the enrollee is required to enroll in Medicare Parts A (hospital coverage) and B (doctor and outpatient services). Senate expected to approve deal on Friday, 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). The pay raise amounts. The workers will also receive additional 2.5% general wage increases and step increases beginning July 1 and July 1, 2023. If Gov. The table on this page shows the base pay rates for a GS-11 . Effective July 1, 2022, full-time employees who are active and in the bargaining unit shall receive a $1,000 (one . will call the 2022 Changes) go into effect as of July 1, 2022 (the Effective Date). Very truly yours, Please note, however, that grandfathered employees are not exempt from the changes relating to health insurance and COLAs. But most House Republicans who spoke in Thursdays debate predicted taxpayers wouldnt be as happy as state employee unions are. We hope their support inspires you to donate so that we can continue telling stories that inform, educate, and inspire you and your neighbors. Connecticut has more per capita debt than most other states, and those long-term obligations are expected to put considerable pressure on state finances for decades to come. font size. ADMIN Home Directory of Divisions. Under current rules, the amount of a retirees COLA is calculated under a formula that accounts for a percentage of any increase in the CPI-W for the preceding year, but which guarantees an annual COLA of at least two percent. 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. In 2022, Governor Parson implemented a 7.5 percent pay increase for the state workforce. Effective July 1, 2022, retirees will continue to be reimbursed fully for the standard premium for Part B. As a While you can still see any in-network primary care provider (PCP) or specialist and pay only a $15 copay, if you see a Preferred in-network provider, the copay will be waived - you'll pay nothing! But that surge followed a nearly decade-long stretch in which state tax receipts from the same source badly underperformed. As discussed above, Normal Retirement Age determines whether a SERS members retirement counts as a Normal Retirement or as an Early Retirement. You cannot be supportive of state workers and the services they provide without being supportive of the necessary funding to ensure that these positions are properly staffed, SEBAC wrote in a statement after the vote. Those packages, collectively, included six fiscal years in which workers forfeited general wage and step increases, though they did receive lump sum payments in two of those six years. All three concession packages also increased health care costs for workers, while two of the three tightened pension and retirement health care benefits. The 2022 Changes with respect to the reimbursement of Medicare premiums will affect only certain high-income retirees. This memorandum will help you explain the 2022 Changes to employees who are planning their retirement by clarifying the following key facts: Taken together, what these facts show is that only a very limited number of employees who were planning to retire after the Effective Date may gain a clear advantage by changing their retirement strategy. Theres a pro-rated bonus for part-time employees. The federal government adjusts that threshold amount each year. Under current rules, the Normal Retirement Age for members of Tiers II and IIA of SERS is age 62except that it is age 60 for members with 25 or more years of vesting service. 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. In other words, the effect of this change to current retirement rules will generally last for only a limited amount of time. The states robust, short-term fiscal position is a sugar high that will pass when the federal stimulus money goes away, ODea said. 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. It could be because it is not supported, or that JavaScript is intentionally disabled. The agreement would cost the state nearly $1.9 billion over four fiscal years, according to nonpartisan fiscal analysts. Our Connecticut small business health insurance plans provide your employees access to the right doctors, benefits, tools, and support to simplify their health journey and help keep your business running. 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. Administration officials estimate the wage increases and bonuses would cost $287 million more this fiscal year, and $403 million above 2020-21 levels next fiscal year. The agreement announced Friday also includes special lump sum payments of $2,500 for active employees. This will be paid in the payroll that includes July 1, 2022. 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