Connecticut House Bill HB06114

Connecticut 2019 Regular Session

• Introduced: 1/24/19
• Refer: 1/24/19

Caption

An Act Omitting Certain Pay From A State Employee's Final Average Salary Calculation On Or After July 1, 2027.

Summary

House Bill 6114 proposes significant changes to the retirement income calculation for state employees in Connecticut. Specifically, the bill aims to exclude overtime pay from the final average salary calculation for state officials and employees who retire on or after July 1, 2027. This legislative measure applies to a broad range of personnel, including those from the executive branch, higher education institutions, the Judicial Department, and the legislative branch, allowing for a uniform approach to retirement income calculation across these sectors. The rationale behind this bill is to create a more predictable and manageable structure for state employee retirement costs. By omitting overtime pay from final calculations, the state seeks to mitigate the financial implications that arise from varying amounts of overtime that employees may accumulate throughout their careers. This could lead to a reduced financial burden on the state’s pension systems, which have been a point of concern in recent years due to rising costs associated with retirement funds. However, the bill has generated notable discussion around its implications for collective bargaining rights of state employees. The legislation also stipulates that any future negotiations regarding this exclusion of overtime from retirement calculations will not be subject to collective bargaining. This provision raises concerns among employee unions, arguing that it undermines their ability to negotiate fair compensation terms for their members, potentially leading to dissatisfaction and opposition from the labor force. Critics of the bill are particularly worried about how it may disproportionately affect employees who rely on overtime as a significant part of their total earnings, especially in roles where overtime is common. The long-term effects on employee morale and job satisfaction could be substantial, prompting calls for further discussion and possible amendments to the bill to balance state fiscal responsibility with fair employee compensation practices.