Are more state employees retiring than usual? Republicans countered Friday that the raises and bonuses far outstrip what households in the private sector are receiving. 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. Tier II is a non-contributory defined benefit retirement plan for most members. Opinion: Gov. 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. Osten said the raises reflect the valuable work state employees provide daily, and particularly throughout the coronavirus pandemic. But we have a bonus that starts after July 1. See 1 Week Subscription - $2.99 / 7 Days. The Victory Channel is LIVE with Victory News! 4.28.23 - Facebook 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 Malloy administration hired a customer-service expert to improve service at the much-maligned Department of Motor Vehicles, and Lamont won passage of legislation reducing the need for residents to go to the DMV: Drivers licenses now are good for eight years, not six; and renewals of vehicle registrations come every three years, not two. 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. 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 coalition, which represents most state employee unions excluding the state police, added that, It is a critical step in resolving the current staffing crisis that is the consequence of decades of disinvestment and austerity., Lamont spokeswoman Lora Rae Anderson said, Were happy the House has passed the SEBAC agreement, and we are hopeful the Senate will do the same.. Thats because state governments coffers are flush with cash as never before. House Approves $1.9B State Employee Raises, Bonuses Deal But Osten said the agreements are essential to maintain a state workforce that is at its smallest size since the 1950s, an argument Lamont has made as well. in its annual Fiscal Accountability Report. "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. functions now spread across agencies, just as Raymond recently struck a five-year deal with Microsoft that replaces a dozen separate agency agreements. 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. Each year includes a 2.5% general wage increase, as well as a step hike for all but the most senior workers. State and union officials are expected to meet again in the fourth year to negotiate wages. Give today at any amount and join the 50,000 members who are A third of the state workforce is going to retire in the next three years, Geballe said. Its also done with the best financial interests of the state at heart.. Watch Live at 7:00 PM: The U.S. and the Holocaust, a film by Ken Burns | Screening & Panel Discussion . The agreement includes: 2.5% general wage increases in each of fiscal years 2022, 2023, and 2024. Lamont said the state has to live within its means, but state employees did extraordinary work during the worst of the pandemic and inflation has increased costs. But the journey to get from here to there, and the ordering of initiatives, is very complex to think about.. This proposed contract is a raw deal for the working people of this state, Sen. Ryan Fazio (R-Greenwich) said. Republicans countered Friday that the raises and bonuses far outstrip what households in the private sector are receiving. How will schools be implementing to curriculum requirements? There is ample evidence that this is a fair contract, a reasonable contract, an affordable contract, she said of Connecticuts wage hikes. 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.. But two union leaders say they see the states expectations of a significant retirement wave as well-founded. 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. Each year includes a 2.5% general wage increase, as well as a step hike for all but the most senior workers. 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. Critics also balk at the cost. The agreements, which unions ratified earlier this spring, are retroactive to the start of this fiscal year, which began last July 1. The bonuses, the GOP argued, are hardly the key to retaining workers, as the governor and other Democrats claim. Josh Geballe, the states chief operating officer and commissioner of the Department of Administrative Services, said state agency heads have found it difficult to promote top performers in their departments because the employees would either have to take a pay cut or worry they wont be afforded the same prospective increases as those in bargaining units. 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. Connecticut Minimum Wage Set to Increase to $15 Youll notice when you look around here, there is no paper. 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. December 30, 2021 @ Finance panel: Next CT tax fairness study must focus on inequality, CT budget battle heats up as Lamont offers rosy financial picture, 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. We hope their support inspires you to donate so that we can continue telling stories that inform, educate, and inspire you and your neighbors. Some of the features on CT.gov will not function properly with out javascript enabled. Critics say the deal is too generous and could lead to future tax hikes. Sign up for free Patch newsletters and alerts. Currently, the only way to advance in most agencies is for someone to retire, leaving a specific job open. State law calls for equity in salary adjustments between union and non-union employees. 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Several Republican lawmakers decried the deal and said it would exacerbate Connecticuts fiscal woes. That helps focus peoples minds and increase their willingness to change and to take risks. Connecticut holds $3.1 billion in its rainy day fund, equal to 15% of annual operating costs the maximum allowed by law. Opinion: Gov. Lamont will give big fat raises to state workers Private-sector employees can only dream of having that, said Sen. Henri Martin, R-Bristol. But more than that, this is a necessary contract so that we can hold on to the best and brightest.. Thirty percent intend to leave the state upon retirement. 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. Connecticut Property Taxes In Every Town: Who Pays The Most? State unions ratify contracts granting raises and $3,500 bonuses It could be because it is not supported, or that JavaScript is intentionally disabled. Its members include scientists, engineers and information technology professionals. Gov. The package was previously approved by the House. At Yankee Institute, we know Connecticut is a state with boundless opportunity, and we intend to help make our state more than a place where people are just able to make ends meet! 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 [nonprofit] industry pegs the inflationary loss its taking on these payments at $460 million per year, according to the CT Mirror. It will slow cost-of-living adjustments for all new retirees and raise health costs for a few, primarily high earners. For retirements prior to June 30, 2022, these cumulative raises will be paid each year on either January 1st or July 1st depending on your date of retirement (DOR). Since 1997, the State has used a formula to calculate the minimum cost of living adjustment. Hartford lawyer Daniel Livingston, chief negotiator for the State Employees Bargaining Agent Coalition, or SEBAC, estimated that going with one-time bonuses and a smaller 2.5% annual cost-of-living raise saves the state about $150 million over the next decade. This means they will apply to all Connecticut employees whose date of retirement is on or later than August 1, 2022.1 The 2022 Changes fall into three different categories: Nothing stands in the way of the ever-increasing generosity of state employee compensation. "I'm very concerned this is unsustainable, opponent Kevin Maloney told lawmakers at a public hearing Monday. Osten said the raises reflect the valuable work state employees provide daily, and particularly throughout the coronavirus pandemic. 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. For retirees who receive their COLAs in January, the trend was more in their favor with three years of inflation increases topping 2 percent. So why might Lamont do something so patently unfair and so politically toxic as awarding pay raises to already overcompensated state workers while most Connecticut citizens and voters have been and still are hurting very badly? Negotiators will meet again to determine raises after the time period. The formula used took 60% of the increase in the Consumer Price Index ( CPI-W) up to 6% and . The state also faces a potential wave of retirements. 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. McCaw said some of the prior management positions that are now unionized include the assistant attorney general, state police captains and lieutenants, supervisors with the Department of Children and Families, parole managers and deputy wardens. 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. The BCG study was supposed to facilitate a third approach. And that total is expected to grow considerably between now and July 1. State retirees to see pension bump as inflation jumps 6 percent My hypothesis coming in was that there are going to be more similarities to how we solve some of the challenges we have than differences, private to public, Geballe said. 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 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 nonpartisan Office of Fiscal Analysis estimates the contract will cost the state $1.87 billion over three years. They are our people, who we count on each day to make us safe, she said. His predecessor, Robert J. Rinker, co-chaired a labor-management committee that addressed some of the same issues now under review. We share the concern about whats going to happen in 2022, said Dave Glidden, the executive director of CSEA SEIU Local 2001, which represents 5,000 state employees. She noted that West Virginia recently granted state employees a 5% raise while Arizona bumped pay for its correction officers by 20% and for workers in many other departments by 10%. In the prison system, there are separate classifications for supervisors of correctional industries, auto mechanics, data entry, printing, clothing, and general industries. 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. Senate gives final approval to raises, bonuses for CT state employees Outside his 15th-floor office in a downtown Hartford complex is a big empty space once occupied by file cabinets. That is the status quo.. Michelle Lee. Ned Lamont and president of state's network of community colleges square off in showdown over state funding. Thats when more stringent limits on state retirement benefits, negotiated as part of a 2017 concessions deal with unions, take effect. 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. He is one of the mid-career, private-sector executives to join the administration of Gov. Private-sector employees can only dream of having that, said Sen. Henri Martin, R-Bristol. State Employees Bargaining Agent Coalition. You'll enjoy reading CT Mirror even more knowing you publish it. 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. There is ample evidence that this is a fair contract, a reasonable contract, an affordable contract, she said of Connecticuts wage hikes. Privacy Policy. 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. Corporate Support: Advertising & Sponsorship, saves the state about $150 million over the next decade. Your pension is subject to an annual Cost of Living Adjustment (COLA). state of ct employee step increase 2022; state of ct employee step increase 2022. The deal works out to about $40,000 in raises per state employee over four years, Fazio said, which works out to about $1,300 per Connecticut household. state of ct employee step increase 2022 - greeninginc.com 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. Pay raise for 46,000 state workers clears key hurdle - News 12 Networks The bargaining units ratified the agreement earlier in the week, and it now it heads to the state legislature for consideration. 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. Theres no way to take on the legacy of mass incarceration other than to undo it, one step at a time. "I come out of the private sector. 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. 2023 January COLA Increase Approved - portal.ct.gov This is a carousel. What will our elected officials be working on to improve policy outcomes for Connecticut residents? Thats something we certainly need to work on here.. Senate approves raises, bonuses for Conn. state workers - WTNH.com Government bureaucracies are notoriously resistant to change, layered with the accretion of rules, processes, union contracts, all contributing to a workplace culture. community-supported public media service, Connecticut Public has relied on donor support for more than 50 years. 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 an additional $1,000 bonus in mid-July. When you do good work, you get a bonus, said Lamont. The comptrollers office cautions that some those eligible to retire will not yet have earned full retirement benefits, giving some an incentive to stay. Memo - 2022 Retirement Changes for CT State Employees Keith is a graduate of and a former journalism instructor at the University of Connecticut. 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. 3.2K views, 182 likes, 87 loves, 302 comments, 161 shares, Facebook Watch Videos from The Victory Channel: The Victory Channel is LIVE with Victory News! The year over year increases drive up the amount paid out by Connecticut's severely underfunded State Employee Retirement System.