Money Wisdom: Should I Retire in Connecticut? Democrats say their budget will include money for the state worker agreement and for some tax relief. 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. How will state and local budgets be affected by fewer federal resources? CT DOT faces criticism following overnight tree-cutting, Haar: Payouts at fading CT trash agency offer lessons in a crisis, State nursing homes could face fine due to too many empty beds, CT legislators revive debate over firefighters' cancer benefits. 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. CONNECTICUT Thousands of state employees received a scheduled raise Wednesday despite Gov. Cooper also recommends spending $860 million for pay incentives and raises for the state employees. Immigrants. You must be fully vaccinated with the primary series of an accepted COVID-19 vaccine to travel to the United States by plane. They are over-extended and fed up, and who could blame them? she said. 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. The Connecticut State Legislature will begin its 2023 session on January 4thand will adjourn on June 7th. Some Republicans have said the hefty bonuses are only an election-year stunt from Lamont, a Democrat, to shore up his standing with his labor base. Sign up for free Patch newsletters and alerts. Marc E. Fitch is the author of several books and novels including Shmexperts: How Power Politics and Ideology are Disguised as Science and Paranormal Nation: Why America Needs Ghosts, UFOs and Bigfoot. 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. 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. 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. 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: This material may not be published, broadcast, rewritten, or redistributed. 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. 4 Things to Know Before Doing a 401(k) Rollover with Raytheon (RTX), 8 Things to Know Before Buying a Second Home in Retirement, Morrissey Wealth Management LLC, 116 Washington Avenue, North Haven, CT, 06473, United States, 2 Upcoming Changes for CT State Employees Pensions in 2022, Avoid Overpaying for Medicare in 2021 and Beyond, Properly Estimating Retirement Cash Flows, A Retirement Income Planning Strategy That Works. The bonuses, the GOP argued, are hardly the key to retaining workers, as the governor and other Democrats claim. Wednesdays Warrior: AJJ Foundation offers music, CT Transit bus driver injured in Rt. A salary increase of a specific dollar amount distributed across pay periods. Gross wages.The median household income is $80,958 (2022). 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. 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. Salary Increase Cost of Living Adjustment (COLA) for Certain Non Represented Employees E Item 2664. In addition, full-time workers would receive a $2,500 bonus in mid-May and another $1,000 bonus in mid-July. Ned Lamont previously touted. We had more people employed in the private sector in 2007 than we do today. 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. Attracting people to fill managerial roles will become even more important as the state prepares for a coming wave of employees retiring next year. Southington: Adventure Awaits! Republicans say theyre going to pay for a legal challenge on behalf of the people of Connecticut once the federal circuit court makes a decision. 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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. 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. Rob Baril, the president of SEIU 1199, in July 2021 arguing that state employees deserve raises. 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. But more than that, this is a necessary contract so that we can hold on to the best and brightest.. 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. It also describes steps the state is taking to . Inevitably, it will be highly unpopular, so the announcement will be buried as deeply as possible and spun like a top by Lamonts spokespeople. They also propose a permanent lowering of the income tax so middle-class families can save $750 a year. The 2002 Changes will increase the amount deducted from the retirement benefits of certain employees to pay for state-provided retiree health insurance. As a 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. In an effort to mitigate the potential loss of thousands of state employees, Gov. Increased costs . Unions granted concessions deals in 2009, 2011 and 2017 to help balance state finances. Some Republicans in the House raised concerns about the bonuses, noting how state workers could still retire even after receiving the bonuses. CONNECTICUT The state Senate gave final approval to the raise and bonus package for state employees. Retired Connecticut state employees will see a substantial bump to their pension payments as a result of increasing economic inflation. Virtually everyone in the state knows the situation and feels it is unfair. In addition, full-time workers would receive a $2,500 bonus in mid-May and another $1,000 bonus in mid-July. While unions and Lamont argue the raises and bonuses will help stem a surge in state employee retirements, Drescher isnt buying it. The contracts allow workers to accept the $2,500 extra payment and still retire before July 1. Retirees that qualify for Medicare are currently reimbursed for the full standard Medicare Part B premium by the State. State Rep. Matt Ritter, the Democratic speaker of the House, says for Republicans to propose tax cuts without some legal guidance and clarity is irresponsible. How many hours (maximum) per day, week and year can a person work? This news story is funded in large part by Connecticut Publics Members Lamont could rehire retired workers as independent contractors, but then he would be paying those fees as well as funding retirement benefits. What will our elected officials be working on to improve policy outcomes for Connecticut residents? Why? For retirees who receive their COLAs in January, the trend was more in their favor with three years of inflation increases topping 2 percent. 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. Gov. Massachusetts enacted a measure (HB 4640) to increase the state minimum wage to $15 over five years. "It has been an incredibly challenging [&hellip. For those retirees, there are insurance premiums that must be paid out of pocket. Polis said the benefits guaranteed in the agreement with Colorado WINS will help "ensure that we can attract great people to our state workforce to do the work of the public for . The unions have already ratified the contracts. There is also a large group if tier 1s who receive 3% guaranteed, no inflation adjustments. 3% tax rate phase-out and tax recapture for high income earners. Fire pit tables provide heat and a place to set down food and drinks, making them great for outdoor entertaining. Theres a pro-rated bonus for part-time employees. I see the sacrifices every day, said Sean Howard, a union official and one of 4,500 unionized state correction officers most of whom risked contracting the coronavirus over the past two 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 states workforce. 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? Lamont should instead ask big corporations and the states richest residents to contribute their fair share, according to the Hartford Courant. 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. 1998 - 2023 Nexstar Media Inc. | All Rights Reserved. Marc has a Master of Fine Arts degree from Western Connecticut State University. Those workers will also get a one-time bonus of $1,000 to be paid out in November as part of companion legislation . Now lets look at the changes to insurance premiums after July 1, 2022. Required fields are marked *. Delaying these raises for state employees can mean someone else who works at a nonprofit can go back to work and provide needed care for someone who is physically, mentally, or emotionally struggling.. 4:04 pm. Setting your budget for retirement. The year over year increases drive up the amount paid out by Connecticuts severely underfunded State Employee Retirement System. Livingston and Jeffrey Beckham, Lamonts budget director, said the deal is more economical than many realize. 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. Nonprofits say their state funding has grown little over the past decade-and-a-half, and since 2007, after adjustments for inflation, funding actually has fallen by $461 million. And thats why we want to work with you to build a broad-based coalition to encourage sound policy reforms to enable Connecticut residents to forge a better future for themselves and their families. projected to cost $1.9 billion over four fiscal years combined, Gov. Democrats were united Thursday in approving the agreement while all but one Republican, Rep. Tom Delnicki of South Windsor, opposed the legislation. Lamont Nominates Bryan Cafferelli As Consumer Protection Commissioner, CT Native, 27, Killed In Apparent Terrorist Attack In Israel: CT News, Wild 2-Car Shootout Involving Teens Locks Down Schools: PD: CT News, 3 Brentwood HS Students Make PBS '20 Under 20' List Of Storytellers, Brothers Kill Groom On Wedding Night: Authorities, Carjackers Steal More Cars Many With Kids Still Inside, Naperville Family Opens Home, Hearts To Welcome Kids Who Lost Parents, Dog Abandoned With Handwritten Note 'A Good Boy,' Loves To Hug & Kiss. After July 1, 2022, these amounts will be increasing to 3% for hazardous duty retirees and 5% for non-hazardous duty retirees. Brief summary of Connecticut state income tax: subject to 0.5% Paid Family and Medical Leave. 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. The bigger pay bump for troopers across the state has flowed . Prefer listening instead of reading? Thirty percent intend to leave the state upon retirement. will call the "2022 Changes") go into effect as of July 1, 2022(the "Effective Date"). Keith is a graduate of and a former journalism instructor at the University of Connecticut. The wage and step increases are retroactive to July 1, 2021. How many hours straight can you legally work? They will also experience decreasing purchasing power throughout their first 30 months of retirement until the first cost of living adjustment. In other words, the State will pay the full standard premium, plus half of any extra. building a betterand more civilConnecticut to live, work, and play. Ideal timing for the announcement would be between Christmas and the New Year. The alternatives are suboptimal. By, Corporate Support: Advertising & Sponsorship, See stories by Keith M. Phaneuf / CTMirror.org, Connecticut COVID data: Your town's infection rate, hospitalizations & vaccinations, Israeli army arrests Palestinian suspects in deadly shooting of West Hartford man, Democrats hold three CT House seats in special elections, Dominicans in Connecticut celebrate 179 years of independence, Why it could be harder to get certain prescriptions as pandemic health emergency ends, As new research suggests COVID-19 is now endemic, physicians push back, Long COVID rates fall by half nationwide, New England rates among lowest, Long COVID researchers in CT to get part of $10 million in federal funding. The agreements, which unions ratified earlier this spring, are retroactive to the start of this fiscal year, which began last July 1. Meanwhile, for the 170,000 K-12 employees, a $2,000 bonus is on the way before June 30. . 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. Thats because state governments coffers are flush with cash as never before. Gov. State and union officials are expected to meet again in the fourth year to negotiate wages. Therefore, if you do not qualify for normal retirement then it may not be the best idea to take an early retirement and receive a reduced pension benefit. The state usually experiences 2,000 to 2,500 annual state employee retirements, according to the CT Mirror. By 2020, the state paid $2.2 billion to 55,348 retirees. A benefit of the plan is that retirees are eligible for a cost of living adjustment every twelve months after that. 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. 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