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. in its annual Fiscal Accountability Report. 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. DM 40 Hour Pay Plan Effective July, 1 2022. The first states that COLAs may be awarded only on January 1 or July 1 of each year. No early retirement health care premium will be charged for any employee who has 25 years of service as of July 1, 2011 who retires before July 1, 2013. the future benefits accruing to . Keith is a graduate of and a former journalism instructor at the University of Connecticut. The vote was almost entirely along party lines, with all Democrats casting ballots for the deal and only one Republican, Thomas Delnicki of South Windsor, supporting it. 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 details regarding insurance costs are provided below. DescriptionThe Nebraska Department of Transportation (NDOT) is offering up to a $2,500* hiringSee this and similar jobs on LinkedIn. Part-timers would be eligible for prorated bonuses. They could be eligible for annual salary increases worth between $4,100 and nearly $11,000. You'll continue to pay nothing if you receive care at a Preferred lab! The federal government adjusts that threshold amount each year. The 2022 Changes fall into three different categories: Many state employees have raised questions about 2022 Changes, especially: There is no simple answer to these questions. The earliest retirement date for employees who terminate their employment after the rules go into effect will be August 1, 2022. The state had 2,056 workers retire two years ago and 2,656 in 2021. The legislature still must consider the agreements, and is expected to act before the regular 2022 session closes on May 4. Coupled with the 2.5% general increase, the overall compensation bump for many workers this year is around 7%. Lamont says the bonuses are crucial to retain state employees, who are retiring in larger-than-normal numbers this spring. 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. Please also take note of the following important facts about these changes: Each of the 2022 Changes potentially affects the amount certain employees will receive from the state over the course of their retirement. 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. 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 . 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 state and unions have the option of continuing the same level of raises for the fiscal year beginning July 1, 2024, or they can negotiate different compensation levels. After an enrolled member of the state retiree health plan provides proof of his or her enrollment in Medicare, and after the amount of the retirees Medicare premiums has been verified, the state will reimburse the retiree for the entire amount he or she pays in premiums to Medicareboth the standard premium for Part B and any IRMAA for Parts B and D. In thinking about the 2022 Changes, it is important to keep two dates in mind. The workers will also receive. But that surge followed a nearly decade-long stretch in which state tax receipts from the same source badly underperformed. (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 This agreement provides a clear message to our state employees that we value their contributions to our residents while also providing a solid platform from which to recruit the next generation of public servants to our rank, Lamont said. Republicans also said they appreciate the hard work of state employees, particularly during the worst of the coronavirus pandemic, but the issue isnt as simple as some believe. 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. The ultimate effect of the changes to cost-of-living adjustments cannot be predicted, because it will depend on future rates of inflation. It is important to note, however, that these deductions generally end when the employee and his or her spouse become eligible for Medicare. Use the information below as a starting point for determining the best place to go for your health care needs. HEP encourages you to take an active role in your health by getting age appropriate wellness exams and screenings. The SEBAC 2017 Agreement includes important changes to active employee health care benefits and payroll deductions related to both pension and health care benefits. The pay raise amounts. But most House Republicans who spoke in Thursdays debate predicted taxpayers wouldnt be as happy as state employee unions are. In addition, full-time workers would receive a $2,500 bonus in mid-May and another $1,000 bonus in mid-July. Locate a Doctor, Hospital, or Pharmacy in the Workers' Compensation Network [learn more] Contact the Customer Service Center Retirement Services Division Office of the State Comptroller 165 Capitol Ave Hartford, CT 06106 (860) 702-3480 osc.rsd@ct.gov More state retiree information 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. At issue are raises and bonuses for roughly 46,000 employees spread among 34 bargaining units that negotiated tentative contracts earlier this spring with Gov. By Red Jahncke . There was an error and we couldn't process your subscription. 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. This means As of this writing, MTN is . 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. 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. For some members of Tiers II and IIA who retire on or after August 1, 2022, the Normal Retirement Age will change: to 65 for most members, and to 63 for members with 25 or more years of vesting service. For example, an enrollees adjusted gross income for 2019 was used to determine if the employee had to pay an IRMAA in 2021. Copyright 2023 NBCUniversal Media, LLC. I think the governors being somewhat less than candid and frank with the public, Kelly said, adding that workers in the private sector arent enjoying compensation hikes close to those state employees would receive. A Normal Retirement differs from an Early Retirement, because pension amounts under the two types of retirement are calculated in different ways: The amount of the reduction for Early Retirement is a multiple of the number of months between (i) the members date of retirement and (ii) the date on which the member will reach Normal Retirement Age. The list ranges from low-level assistants in agencies such as the Office of Early Childhood and Secretary of the State, to a deputy environmental commissioner and a high-level agricultural scientist making six figures. 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. In addition, AFSCME Council 3 has secured a $1000 bonus to be paid upon ratification of the agreement in January 2022. Preferred in-network specialists are currently available for ten medical specialties: Your Doctor Might Already Be Preferred. 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. The vote was almost entirely along party lines, with all Democrats casting ballots for the deal and only one Republican, Thomas Delnicki of South Windsor, supporting it. 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. 01. 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. It could be because it is not supported, or that JavaScript is intentionally disabled. Some of the features on CT.gov will not function properly with out javascript enabled. . percent (2.5%) increase plus step increases, annual increments or . But most House Republicans who spoke in Thursdays debate predicted taxpayers wouldnt be as happy as state employee unions are. "Thank you to my colleagues for finishing this in a timely manner," Sen. Lincoln Hough, R-Springfield, said in a statement. participating pharmacy. For members of Tiers II and IIA, special rules can make this a complex calculation. Thats when more stringent limits on state retirement benefits, negotiated as part of a 2017 concessions deal with unions, take effect. Find information on working from home including security, M365 set up, and using Teams. 2022 12:01 am . 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. It could be because it is not supported, or that JavaScript is intentionally disabled. Behind him to the left is Sal Luciano, president of the state AFL-CIO. However, retirees will still receive a COLA in every year for which there is any measurable inflation. 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. Anthem and United Healthcare/Oxford will have a Preferred designation for outpatient lab services and diagnostic imaging (e.g., blood work, urine tests, stool tests, x-rays, Mammograms, MRIs, CT scans) in Connecticut. There was an error and we couldn't process your subscription. Although members who retire after the Effective Date must wait longer to receive a first COLA, the impact of this change is potentially softened by another rule. 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. Its nothing more than a handout.. Ned Lamont on Wednesday proposes a wage freeze for state employees in 2022 and 2023, that would save the government an estimated $141.75 million a concession the state employee unions say they are not willing to make. 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. The budget announced by Gov. font size. For us now to be told these workers can receive the bonuses even when they retire demonstrates that the governor either made a bad deal for the taxpayers or misled the public to avoid the critical fallout of this lucrative political deal.. CTDOL.state.ct.us. State Employees Bargaining . 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 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*). The collective bargaining agreements known as SEBAC 2011 and SEBAC 2017 made If more than 5 years early, use 5. Were hemorrhaging workers right now, DAgostino said. This additional premium is known as the Income-Related Monthly Adjustment Amount, or the IRMAA.. She previously worked at WTNH-TV and MyTV9 in New Haven, Connecticut. Effective July 1, 2022, full-time employees who are active and in the bargaining unit shall receive a $1,000 (one . As discussed above, a SERS member who retires today will not be eligible to receive a COLA until at least nine months have elapsed from the members retirement date. Employees who have retired under an Early Retirement pay different percentages for their healthcare coverage. There are no changes to the Health Enhancement Program (HEP). Under a Normal Retirement, the monthly pension payable to a SERS member is calculated under a formula that this document will call the , Under an Early Retirement, the members pension is calculated by (i) applying the Normal Retirement Formula, and then (ii). Salary Increase Cost of Living Adjustment (COLA) for Certain Non Represented Employees E Item 2664. The bonuses, the GOP argued, are hardly the key to retaining workers, as Lamont has claimed. The agreement announced Friday also includes special lump sum payments of $2,500 for active employees. In other words, the effect of this change to current retirement rules will generally last for only a limited amount of time. Health care costs can vary from place to place in Connecticut, as they do in other states. Ned Lamont addresses a campaign union rally in November 2018. mark pazniokas / ctmirror.org. Part-timers would be eligible for prorated bonuses. DX 35 Hour Dentist Pay Plan Effective July 1, 2022. Lamont says the bonuses are crucial to retain state employees, who are retiring in larger-than-normal numbers this spring. Because the Normal Retirement Age for Tiers II and IIA will change as of the Effective Date, members of those Tiers who retire on or after August 1, 2022, and who wish to avoid the pension reduction associated with Early Retirement, will have to wait longer before they retire. CT Mirror. The State of NJ site may contain optional links, information, services and/or content from other websites operated by third parties that are provided as a convenience, such as Google Translate. Compensation Schedules, JULY 1, 2019. . 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. 2016 CT.gov | Connecticut's Official State Website, regular Please note, however, that only employees whose income is above a certain threshold amount must pay the IRMAA. 2 SUBSTANTIVE CHANGES Article 2.15 and 2.16 Labor Contract training made available to teammates and people leaders. Each retirement plan in SERS (including the Hybrid Plans) specifies a certain age as Normal Retirement Age. SUI tax rates range from 1.7% to 6.6%. DAgostino said he believes arbitrators would have awarded unions annual cost-of-living raises of 3% or 3.5% given the state governments enhanced ability to pay. While the average employee salary at Channel 8 is ,973, there is a big variation in pay depending on the role. Prescription Drugs -- New Formulary, New Copays. Tier 2 (Preferred brand name): $5 copay Connecticut Gov. If, at that time, the employees dependents continue to be covered under the states retiree health plan, deductions will be made to pay for coverage only for those dependents. Tier 3 (Non-Preferred brand name): $12.50 copay. Ned Lamont's administration. But that surge followed a nearly decade-long stretch in which state tax receipts from the same source badly underperformed. Fiscal Year End Job Aid for HRMS. That still is being negotiated by the unions and the administration. Prescription drug costs are rapidly increasing. 5 Likewise, for those members of the Alternate Retirement Program (ARP) that are subject to the rates listed on Appendix A, there will be no change to the Normal Retirement Ages used to determine the applicable rate. The agreements, which unions ratified earlier this spring, are retroactive to the start of this fiscal year, which began last July 1. Since 1997, the State has used a formula to calculate the minimum cost of living adjustment. Some of the features on CT.gov will not function properly with out javascript enabled. There will be no guaranteed minimum for those who. 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. 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. CT 40 Hour 10 month Pay Plan Effective July 1, 2022. The 3,416 retirements and planned retirements combined is up 10% from just one month ago. Since the start of his Administration, Governor Parson has improved state team member pay by more than 21 percent through targeted and across the board pay plans, all in an effort to ensure continuity of state services, combat inflationary wage pressures . 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. The agreement would cost the state nearly $1.9 billion over four fiscal years, according to nonpartisan fiscal analysts. The precise effect is impossible to forecast, because it depends on such matters as future rates of inflation, future costs of health insurance and Medicare, and the number of years each employees retirement will last. The table on this page shows the base pay rates for a GS-11 . To the extent the rates on Appendix A apply to any member of Tier II or IIA who retires on or after August 1, 2022, the rates will be calculated as if the current Normal Retirement Age still applied.5. It seems that JavaScript is not working in your browser. When a retired employee is enrolled in the MAPD, premium charges for his or her coverage under the states retiree health plan will end. An appointing authority may permit a full-time permanent employee in the state service to accumulate vacation days with pay up to a maximum of one hundred twenty vacation days, subject to regulations issued by the commissioner of administrative services. The states robust, short-term fiscal position is a sugar high that will pass when the federal stimulus money goes away, ODea said. The $3 billion in budget reserves and $4 billion in projected surplus pales in comparison with the $95.4 billion in long-term unfunded obligations Connecticut has, ODea said, referring to the combined pension, retirement health care and bonded debt the Lamont administration listed last November in its annual Fiscal Accountability Report. The bonuses, the GOP argued, are hardly the key to retaining workers, as Lamont has claimed. The extra COLA will be calculated on the basis of the CPI-W for that initial, 18-month period of high inflation. To determine if an employees income is over the threshold, the government looks to the adjusted gross income that the employee reported on his or her federal return for the tax year that was two years before the year in which the IRMAA will be charged. 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. During that time Connecticut's average pension payment increased 15 percent from $34.589 in 2015 to $39,887 in 2020. The discussions below explain which members each change will and will not affect. Copyright 2002 - 2017 Office of the State Comptroller, Available in Anthem's and United Healthcare/Oxford's Network, Select list of in-network specialists in one of ten medical specialties, Have a non-life-threatening medical concern or long term condition, or need a routine checkup, $0 copay for Preferred in-network providers; $15 copay for Non-Preferred in-network providers, Need medical guidance or information related to a symptom, treatment or surgery, Have a non-life-threatening minor ailment such as a cold, ear infections or sore throat, Have a condition that is more than minor but not life-threatening (e.g., cuts or other superficial wounds, moderate burns sprains), Have a life-threatening concern such as shortness of breath, severe chest pain, severe wound or broken bone, $250 copay; In certain circumstances, including actual emergencies or if you're admitted to the hospital, your copay will be waived. State Employees Bargaining Agent Coalition, Proudly powered by Newspack by Automattic. The contract covers the four-year period from July 1, 2021, through June 30, 2025. In other words, the 2022 Changes will not apply to any employee who retires on or before July 1, 2022. 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. community-supported public media service, Connecticut Public has relied on donor support for more than 50 years. 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. Your donation today will allow us to continue this work on your behalf. For 2021, IRMAAs ranged from $71.70 per month, for those whose income was equal to the threshold amount, to $433.50 per month, for the highest earners. If over 25, use 25. If a grandfathered member of Tier II or IIA chooses to retire after the Effective Date, but after also having reached the new Normal Retirement Age, then the member may receive a refund of the amount he or she paid for the right to grandfather.. 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. They also cover the next two fiscal years and potentially 2024-25 as well. The agreement announced Friday 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. 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 hourly base pay of a Step 1 GS-11 employee is $26.72 per hour1 . Tier 3 (Non-Preferred brand name): $12.50 copay. Retirement Services Division. In 2022, Governor Parson implemented a 7.5 percent pay increase for the state workforce. Here's how much you will pay for your maintenance and non-maintenance prescriptions: The copays for medications used to treat chronic conditions continue to be: The formulary focuses on clinically effective, lower-cost alternatives to high-cost drugs. Plans are designed for businesses with 2 to 50 employees. Each of the first three years includes annual general wage increases (GWI) and step increases, so nearly all of the additional pay for the first year will be retroactive. And while some criticized the bonuses, the Hamden lawmaker and others say they would save the state money over the long haul. font size, Human Resources Business Rules and Regulations. Please note, however, that Normal Retirement Age for Tiers II and IIA will not change for purposes of calculating amounts due for retiree health coverage. There will be no changes to HEP, including copay amounts for drugs used to treat HEP targeted chronic conditions which include diabetes, asthma or COPD, heart disease/heart failure, hyperlipidemia (high cholesterol) or hypertension (high blood pressure). Governor Lamont wants the union vote next November, and he will doeverything in his power to get it at the expense of everyone else in Connecticut.. in its annual Fiscal Accountability Report. 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 will also make two changes to the way COLAs are awarded to SERS retirees. 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