Connecticut House Bill HB06397

Connecticut 2019 Regular Session

• Introduced: 1/28/19
• Refer: 1/28/19

Caption

An Act Excluding Travel Reimbursements From State Employee Pension Calculations.

Impact

The bill specifies that the changes will take effect for new state employees upon the passage of the bill and will be applicable to all state employees after July 1, 2027. This phased implementation allows current employees to continue receiving pension calculations that include travel reimbursements until the agreed deadline. The exclusion of travel reimbursements from pension calculations serves to restructure the financial implications for the state's pension system over the long term, potentially reducing overall pension liabilities.

Summary

House Bill 6397 focuses on modifying the way state employee pensions are calculated by excluding travel reimbursements from the pension calculations. The bill proposes to amend the general statutes such that any travel reimbursements received by state employees will not count towards their pension calculation. This change aims to create a clearer and more predictable pension framework for state workers, ensuring that only basic salary and authorized income are factored into retirement benefits.

Contention

While proponents argue that the bill will ensure fairness and sustainability in the pension system, detractors may raise concerns about its impact on employee compensation and motivation. Travel reimbursements can be significant for some state workers, and removing them from pension considerations might discourage employees who rely on these reimbursements as part of their total compensation package. Consequently, there could be debates surrounding the balance between financial responsibility to taxpayers and maintaining adequate incentives for state employees.