Connecticut House Bill HB05149

Connecticut 2021 Regular Session

• Introduced: 1/13/21
• Refer: 1/13/21

Caption

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

Impact

By excluding overtime and mileage reimbursements from pension calculations, HB 05149 could lead to significant changes in the retirement benefits that state employees receive. This shift may result in lower monthly pension disbursements for many state employees upon their retirement, potentially affecting their financial security. This adjustment may also have broader implications for state finances, as it could reduce the pension liabilities the state carries, thereby offering some fiscal relief.

Summary

House Bill 05149 aims to amend the existing laws governing the pension calculations for state employees by excluding certain types of financial reimbursements from the calculation of retirement income. Specifically, the bill seeks to remove mileage reimbursements and payments for overtime from the formula used to determine pension benefits. The intention behind this legislation is to potentially reduce the total pension payouts that the state is obligated to fulfill, thereby impacting the overall budget for public employee pensions.

Contention

The bill is expected to face contention primarily on two fronts: the fairness of the proposed changes to state employees and the potential impact on recruitment and retention efforts for public sector jobs. Opponents may argue that excluding reimbursements from pension calculations undermines the longevity and loyalty of state employees, as they may view these compensatory elements as integral to their overall compensation package. Supporters of the bill might counter that such changes are necessary to ensure that pension systems remain sustainable in the long term, especially in the context of rising state budgetary pressures.