Connecticut House Bill HB05574

Connecticut 2019 Regular Session

• Introduced: 1/18/19
• Refer: 1/18/19

Caption

An Act Excluding Reimbursements To State Employees For Mileage And Payments For Overtime From The Calculation Of Retirement Income.

Impact

The changes proposed by HB 5574 are expected to have a significant impact on the retirement income of many state employees, particularly those who rely on overtime pay and mileage reimbursements as part of their compensation package. By eliminating these from retirement calculations, the bill could lead to reduced pension payouts for certain workers, especially those in positions where overtime is a common part of the job. This could effectively lower the total pension liabilities for the state, which is a key consideration for the state's fiscal management.

Summary

House Bill 5574 seeks to amend the existing statutes regarding the calculation of retirement income for state employees by excluding reimbursements for mileage and payments for overtime from these calculations. The primary goal of this legislation is to affect the retirement benefits of state workers by simplifying the criteria for pension calculations, making them less influenced by additional compensation elements that may not reflect an employee's regular salary. This change aims to ensure a more standardized and predictable approach to pension planning for the state budget.

Contention

While the bill aims to reduce pension costs and establish clearer guidelines, it is also likely to face opposition from state employee unions and advocacy groups who argue that this change undermines the value of employees' work. Critics may contend that overtime pay is merited for many job roles and that accounting for these payments in retirement calculations recognizes the contributions of employees during their service period. Furthermore, there may be concerns about the long-term financial security of state workers who may depend on these additional benefits for a livable pension upon retirement.