Ned Lamont speaks at a news conference at Connecticuts Beardsley Zoo, in Bridgeport, Conn. March 29, 2021. That marked a 9 percent increase from the previous year, which was the largest yearover-year change since at least 2014-2015, according to a CT Insider analysis of data from the . Jessica Hill / Associated Press 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. But most House Republicans who spoke in Thursdays debate predicted taxpayers wouldnt be as happy as state employee unions are. 2:19 pm. Some changes already have come, pushed by Nicholas Hermes, a West Point grad who is the statewide human resources director at DAS, hired in 2016. We have three years to plan for that, Geballe said. The agreement would cost the state nearly $1.9 billion over four fiscal years, according to nonpartisan fiscal analysts. Gov. Automation is a word that makes unions nervous, even as they acknowledge the nature of work is changing. October 25, 2021 @ Sign up for free Patch newsletters and alerts. December 30, 2021 @ It is unsustainable and, more plainly, unjust. There are nine classifications for custodians, 12 for assistant attorneys general, and a whopping 221 for program directors. The non-unionized managers will receive a one-time bonus of $2,000 and 7.5% in wage increases, including a 3.5% cost-of-living increase and up to 4% annual increments. 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. When the CPI-W rises above 2 percent, those retirees will receive either 2 percent or a percentage of the rate of inflation, depending on how high the rate rises. Its also done with the best financial interests of the state at heart.. Geballe is no stranger to bureaucracies and the opportunities, challenges and necessities of wrenching change: He spent 11 years at IBM, which employs 350,000 people worldwide and preaches that the world is in the midst of a fourth industrial revolution, a convergence of new technologies powered by cloud computing. SEBAC employees who are employed before March . State employee unions offered concessions in 2009, 2011 and 2017. The package was previously approved by the House. Despite Lamonts claims to the contrary, it is highly likely that he will award state employees significant future wage increases as well as a generous modification of cost-of-living adjustments to their pensions after their retirement. Osten said the raises reflect the valuable work state employees provide daily, and particularly throughout the coronavirus pandemic. CT Mirror is a nonprofit newsroom. The Lamont administration and SEBAC argue the deal is actually good for taxpayers, because an arbitrator would likely award workers even bigger raises. The only Tier II members who are required to make retirement contributions are: Individuals serving in hazardous duty positions; and Individuals who elected to pay an additional contribution to maintain the current normal retirement age. 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. ALERT: Tell lawmakers to vote NO on the TCI Gas Tax Loophole that forces CT residents to pay unlimited energy taxes! 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! 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. 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. Ned Lamont is negotiating a new wage contract with the State Employees Bargaining Alliance Coalition. Hed also like to talk about a classification system that is flexible and provides a career ladder. Please reload the page and try again. Administrations come and go, taking with them their priorities. Give today at any amount and join the 50,000 members who are The managers who will receive the raises include division heads at state agencies, as well as commissioners and. The contract is not a done deal. Virtually everyone in the state knows the situation and feels it is unfair. Lamont joined others to announce the deployment FEMAs new COVID-19 mobile vaccination unit, which is set up and running this week in the zoos parking lot. Geballe said he just renewed his registration on-line. That sum hasnt changed much in two decades. People know not to bring paper in here, said Josh Geballe, a former IBM executive and tech entrepreneur. The long session, as non-election years are called in Hartford, will be centered around the biennial budget. Not the fact that Connecticut has had a big contraction in its workforce during the pandemic of about 6 percent and a top 10 unemployment rate, currently exceeding 7 percent, versus a national average nearing 5 percent. Marc was a 2014 Robert Novak Journalism Fellow and his work has appeared in The Federalist, American Thinker, The Skeptical Inquirer, World Net Daily and Real Clear Policy. 1 week of full access. The Democrat-controlled House voted 96-52 to approve the contracts, after a four-hour debate during which Republicans insisted the compensation far outstrips what private-sector workers are receiving, or what taxpayers can afford. 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. 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. Weve seen clerical workers go from a high of almost 9,000 to 4,000.. Dannel Malloy included a provision to change the COLAs for state employees who retire after July 1, 2022. We felt one of the most efficient ways and equitable ways to make a dent in this challenge was to go back and provide those same increases to the managers that had already been given to our union employees.. Greenwich resident Red Jahncke is president of The Townsend Group International, a business consultancy in Connecticut, and a freelance columnist published in national and Connecticut newspapers. Here are five things to know about the deal: Employees covered by the State Employees Bargaining Agent Coalition would get a 2.5 percent wage increase and step increases retroactive to July 1, 2021. Thermo Fisher Scientific bought the company the same year. Private-sector employees can only dream of having that, said Sen. Henri Martin, R-Bristol. Thats because state governments coffers are flush with cash as never before. Paper versus electronic records is just one of so many, Glidden said. CT Gov. listeners, viewers, and readers like you who value fact-based journalism and trustworthy information. BCG documented that the sclerotic state bureaucracy takes an average of 33 weeks to hire a new employee. 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. The state usually experiences 2,000 to 2,500 annual state employee retirements, according to the CT Mirror. 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. This is a carousel. Raising minimum salary levels between 10% to 25% will give many frontline HHSC employees a reprieve from dire financial straits caused by the Texas Legislature's failure to provide across-the-board pay raises to state . They would then get the same increase on July 1, 2022 and again on July 1, 2023. As a According to the Bureau of Labor Statistics, between 2015 and 2020 there was only one year 2018 during which the CPI-W for July was above 2 percent. State and union officials are expected to meet again in the fourth year to negotiate wages. I think all of the stakeholders lament it, but then find the excuses for why we cant change it. Gusty winds add new twist to brush fires in CT, officials say, What's next for the nuclear waste that's been in CT for 50 years, Building emissions are a key climate change contributor in CT, After decades in unmarked grave, CT homicide victim put to rest. The proposed contract is generous. With only 41 weeks remaining to replace retiring employees, the Lamont administration is fast approaching a severe manpower crisis. 90% of our revenue is contributed. 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. The agreements, which unions ratified earlier this spring, are retroactive to the start of this fiscal year, which began last July 1. Its a matter of whether we can afford it.. Those employed on July 15, 2022 would get a $1,000 bonus if the agreement is approved. Michelle Lee. All Rights Reserved. This final increase may pose concerns for small businesses and non-profit organizations operating in the state. 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. 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%. 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. Negotiators will meet again to determine raises after the time period. Glidden said the Malloy administration made overtures about a labor-management review of state government in concession talks in 2011 and again in 2017. . The bonuses, the GOP argued, are hardly the key to retaining workers, as the governor and other Democrats claim. But the Lamont administration is facing a gathering wave of retirements, producing a sense of urgency that Geballe says is shared by labor and management. Its members include scientists, engineers and information technology professionals. 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. 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. But two union leaders say they see the states expectations of a significant retirement wave as well-founded. Fazio said that it reflects the pull unions have on state government and that taxpayers will end up footing the bill. We hope their support inspires you to donate so that we can continue telling stories that inform, educate, and inspire you and your neighbors. Changes to state employee retirement benefits will go into effect in July of 2022 In an effort to mitigate the potential loss of thousands of state employees, Gov. Thats when more stringent limits on state retirement benefits, negotiated as part of a 2017 concessions deal with unions, take effect. In the past, similar planned changes to retirement benefits have triggered waves of retirements before the changes take place, the OLR report states. 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. The deal is now final since the state Senate and House approved it. The contracts allow workers to accept the $2,500 extra payment and still retire before July 1. And that total is expected to grow considerably between now and July 1. 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 that about three-quarters lean toward retirement. 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. But overall, as agency heads told Geballe as he made the rounds in January and February, the states hiring process still is cumbersome, with rarely updated job classifications that are numerous, narrowly drawn and can require their own tests. Lamont, who said that in June 2020 when asked about the pay raise to take effect just days later on July 1. Your pension is subject to an annual Cost of Living Adjustment (COLA). Negotiators will meet again to determine raises after the time period. So, it is a safe bet that Lamont will sign a juicy new wage contract with SEBAC. Its nothing more than a handout.. Those who challenge government actions for the right reasons could be forever barred from political office unjustly by this law. The managers who will receive the raises include division heads at state agencies, as well as commissioners and deputy commissioners. The best long-run thing for the state pension system is to have inflation just at or above 2%. The one thing we know about Ned Lamont or any Democrat, for that matter is that he will not fight the unions. The virtually inevitable pay hikes and favorable benefit modifications will then be classified as hardship pay to reward for employees for their phantom frontline service.. Lamont says the bonuses are crucial to retain state employees, who are retiring in larger-than-normal numbers this spring. The House, where Democrats also hold a majority, approved the package 96-52 on Thursday. If youre going to get a bonus, youve got to stick around with us for a while, said Rep. Jay Case, R-Winsted. This news story is funded in large part by Connecticut Publics Members The bargaining units ratified the agreement earlier in the week, and it now it heads to the state legislature for consideration. The contracts allow workers to accept the $2,500 extra payment and still retire before July 1. The Charter provides commonsense reforms to make Connecticuts government work for its residents. Part-timers would be eligible for prorated bonuses. The [nonprofit] industry pegs the inflationary loss its taking on these payments at $460 million per year, according to the CT Mirror. 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. Are more state employees retiring than usual? The Lamont administration, labor leaders and other supporters of the increases have said they believe unions could have gotten even larger raises had they rejected the states offer and gone to arbitration. But Gov. 4.28.23 We are LIVE with our 11 am/CT. As a federal EPA employee recently told the Washingtonian in a piece about the Trump administration, I fully intend to outlast these people.. As a The Florida House and Senate are working on a budget whose bottom line for state workers is a $224 million pay raise - that's about $44 a week, ($2,300 annually) for the 97,000 employees in the . More than 46,000 Connecticut state employees could soon get a significant raise -- and bonuses - thanks to a new union contract that won approval in a key legislative committee Monday. Social Security has announced that they will be granting a cost of living increase of 8.7% for 2023. Photos: Iconic Landmarks To Visit Across CT. It is tone deaf and appears to even regular folks like me to be pandering to special interests in an election year.". Ned Lamont previously touted. Inevitably, it will be highly unpopular, so the announcement will be buried as deeply as possible and spun like a top by Lamonts spokespeople. Published April 18, 2022 at 3:52 PM EDT. Find State Employee Benefits, Union Contractions, Equal Employment Opportunity Information, Tuition Reimbursement . SEBAC employees who are employed before March 31, 2022 would also get a $2,500 bonus. In addition, full-time workers would receive a $2,500 bonus in mid-May and another $1,000 bonus in mid-July. BCG was to help accelerate efficiency efforts, enabling the state to operate with less manpower. Youll notice when you look around here, there is no paper. building a betterand more civilConnecticut to live, work, and play. Were working really hard to digitize everything we do.. And while some criticized the bonuses, the Hamden lawmaker and others say they would save the state money over the long haul. That will be followed by 2.5 percent raises on July 1, 2022 and July 1, 2023. ThanKs Vin, Lyle Scruggs In addition, full-time workers would receive a $2,500 bonus in mid-May and another $1,000 bonus in mid-July. After leaving IBM, he became chief executive officer of Core Informatics, a software startup that Hartford Business Journal included in its 2017 list of best places to work in Connecticut. During that time Connecticuts average pension payment increased 15 percent from $34.589 in 2015 to $39,887 in 2020. The legislature's Appropriations Committee endorsed significant raises and $3,500 in bonuses Monday for about 46,000 unionized state employees. Geballe said the new administrations job is to support, broaden and accelerate those changes. If you value the story you just read please consider making a donation. It could be because it is not supported, or that JavaScript is intentionally disabled. State finances also are being supported this fiscal year and next by about $3 billion in emergency federal pandemic relief. Currently, the only way to advance in most agencies is for someone to retire, leaving a specific job open. Those who challenge government actions for the right reasons could be forever barred from political office unjustly by this law. The Lamont administration, labor leaders and other supporters of the increases have said they believe unions could have gotten even larger raises had they rejected the states offer and gone to arbitration. There are also new bonuses: $2,500 next month and an extra $1,000 in mid-July. Sign up for free Patch newsletters and alerts. Connecticut Property Taxes In Every Town: Who Pays The Most? The State Employees Bargaining Agent Coalition represents 35 different bargaining units and more than 40,000 state employees. Privacy Policy. 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. 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. How will state and local budgets be affected by fewer federal resources? Ned Lamont and president of state's network of community colleges square off in showdown over state funding. Going forward, these employees will be entitled to receive wage and benefit provisions that their union counterparts will receive, per language the governors office included in the 837-page budget implementer bill passed this legislative session, McCaw said. Note: the above image is a chart for the CPI-U, not the CPI-W. Your donation today will allow us to continue this work on your behalf. Were losing some of our best and brightest as they seek other parts of the country where its easier to make a living. 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. 0:36. Some of the features on CT.gov will not function properly with out javascript enabled. The agreements, which unions ratified earlier this spring, are retroactive to the start of this fiscal year, which began last July 1. Part of the 2017 SEBAC Agreement between the State Employees Bargaining Agent Coalition and Gov. Thirty percent intend to leave the state upon retirement. 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. Examples abound. That will be followed by 2.5 percent raises on July 1, 2022 and July 1, 2023. In 2015, Connecticut paid $1.7 billion to 49,111 retirees, according to the Comptrollers Open Pension website. 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. Number one: What if the state developed a way for citizens to be known across agencies by the end of 2022?.
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