Among the principles agreed upon by the parties in their discussions, the most important was to “maximize profits while minimizing pain.” This principle was neither perfect nor perfectly respected. But the final agreement resulted from a combination of that principle and the awareness by both sides that the cost of failure could be catastrophic for state employees, the administration and all Connecticut residents. Here are the elements of the agreement: there are critics who are already opposed to this framework because they think it does not cause enough pain to working families. These criticisms would undoubtedly be opposed to any agreement with SEBAC. These people need to be reminded that public servants continue to save the state $1 billion a year by making concessions. A summary of the agreement between the governor, Dannel P. Malloy, and the state workers` unions circulates among state employees. Connecticut`s latest reforms were passed in 2017 and a fourth-tier retirement plan with a lower pension multiplier (1.3%) Created. but also the addition of a small defined contribution component (1% contribution from the employee and the employer). Staff contributions are higher and include a new component of risk sharing.
The agreement included an overall 2% increase in all workers` pension contributions. The parties agreed that from 2022, retirees would see changes in their cost-of-living adjustment (COLA) – from a minimum value of 2% to a price index for the initial 2%, then 60% of that increase, and a delay in pensions that receive their initial COLA at 30 months after retirement. Risky workers continue to see their normal pension requirements increase, as well as more effective coverage for their pension overtime. In 2009, Connecticut introduced health care reforms for retirees. All employees recruited after July 1, 2005 had to contribute 3% of their salary through a contribution to their medical benefits in retirement. D. A new option for new employees with a higher ed and a current alternative pension plan (ARP) The agreement offers the right to new employees with a higher Ed. and current PRA participants to move to a hybrid contribution type plan defined benefit/defined.
The purchase option is made in insurance costs. The hybrid plan has defined benefits, identical to Category II/IIa, but requires staff contributions 3% higher than the contribution required by the corresponding Tier II/IIa plan.