SR 4 — RESOLUTION PROPOSING APPROVAL OF A TENTATIVE AGREEMENT BETWEEN THE STATE OF CONNECTICUT AND THE CONNECTICUT EMPLOYEES UNION INDEPENDENT, NP-2 BARGAINING UNIT (CEUI).

Senate General Assembly SenateFile Resolution No.

456 February Session, 2026 LCOSenate Resolution No.

26664 ReferredSenate, toMarch 18, 2026 The Senate Committee on APPROPRIATIONSAppropriations Introducedreported by:through SEN.OSTENofthe19thDist.,Chairperson oftheCommittee on the part of the Senate, that the resolution ought to be adopted.

(APP) RESOLUTION PROPOSING APPROVAL OF A TENTATIVE AGREEMENT BETWEEN THE STATE OF CONNECTICUT AND THE CONNECTICUT EMPLOYEES UNION INDEPENDENT, NP-2 BARGAINING UNIT (CEUI).

APP Senate Favorable LCOSR4 1/ ofFile 1No.

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56 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.

In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.

Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note State Impact:

Agency Affected Fund-Effect FY 26 $ FY 27 $ FY 28 $ FY 29 $ Various Agencies Appropriated - 8,645,124 20,086,113 31,704,331 32,657,076 Cost Constituent Non- Units of Higher Appropriated - 2,860,975 6,341,321 9,981,319 10,193,999 Education Cost Various Agencies Non- Appropriated - 620,209 1,384,948 2,178,095 2,224,282 Cost Total 12,126,308 27,812,381 43,863,745 45,075,356 Note:

App Fund=All Appropriated Funds;

All Funds=All Funds Municipal Impact:

None Explanation The resolution proposes approval of an agreement between the State of Connecticut and the Connecticut Employees Union Independent NP- Bargaining Unit (CEUI).Thisagreement covers four fiscalyearsfor the period of July 1, 2025 - June 30, 2029, with a wage re-opener provision for the final year of the agreement (FY 29).

The agreement covers approximately 3,661 state employees whose responsibilities include service, maintenance, repair, delivery, cleaning, and cooking at hospitals, campuses, airports, roads, bridges, and parks across the state.

The table below contains a summary of the provisions of the agreement and the associated costs to all appropriated funds.

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56 Connecticut Employees Union Independent (CEUI) NP-2 All Funds Cost Estimate Description FY 26 FY 27 FY 28 FY 29 Provisions Beginning in FY 26 General Wage Increase (GWI) 2.5% 6,483,416 6,744,668 6,744,668 6,744,668 Annual Increment (AI) 2,901,148 5,782,441 5,782,441 5,782,441 Lump Sum 1,358,320 - - - FY 26 Subtotal 10,742,885 12,527,109 12,527,109 12,527,109 Provisions Beginning in FY 27 General Wage Increase (GWI) 2.5% 6,786,390 7,057,846 7,057,846 Annual Increment (AI) 2,939,658 5,858,112 5,858,112 Lump Sum 1,694,156 - - Grade Changes 614,979 728,657 728,657 Fire Crash Standby (CAA) 1,820 1,820 1,820 FY 27 Subtotal 12,037,003 13,646,435 13,646,435 Provisions Beginning in FY 28 General Wage Increase (GWI) 2.5% 7,096,870 7,380,745 Annual Increment (AI) 2,813,960 5,612,295 Lump Sum 2,064,277 - Grade Changes 220,045 275,495 Differentials and On-Call Rates 339,380 339,380 FY 28 Subtotal 12,534,533 13,607,914 Total Salary 10,742,885 24,564,112 38,708,076 39,781,457 Fringe Social Security 6.2% 666,058 1,522,976 2,399,901 2,466,452 Medicare 1.45% 155,771 356,180 561,267 576,830 Unemployment 0.12% 10,742 24,564 38,708 39,782 SERS Normal Cost 359,285 821,522 1,294,552 1,330,452 OPEB 191,567 438,027 690,241 709,383 Fringe Subtotal 1,383,423 3,163,269 4,984,669 5,122,899 Non-Salary Adjustments - 85,000 171,000 171,000 TOTAL 12,126,308 27,812,381 43,863,745 45,075,356 General Wage Increase and Annual Increment - Employees will receive a General Wage Increase (GWI) of 2.5% and an Annual Increment (AI) in FY 26, FY 27, and FY 28.

Increases in costs between the year the increase begins, and the following year are due to the SR4 / File No.

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56 annualization of the increases provided.

The estimate in FY 29 representsthecost ofallGWIsandAIsinthecontract once they are fully annualized.

The contract includes a wage re-opener provision which allows for the negotiation of a GWI and AI in FY 29.

Lump Sum Payments – Employees who are at the top step of their pay plan and are not eligible for an AI, instead receive a lump sum payment equal to 2.5% of their salary.

Grade Changes – The contract increases the pay grades for certain job titles using the round up methodology .

The changes to pay grades impact six job titles beginning in FY 27 and an additional eight job titles beginning in FY 28.

The table below provides a list of the job titles with their current and new pay grades.

Grade Changes Summary Title Effective July 1, 2026 Current New Transportation Supervisors Assistant FM 12 FM 15 Transportation Manager's Assistant FM 14 FM 17 Transportation Maintenance Crew Leader FM 20 FM 21 Ferry First Mate FM 15 FM 17 Ferry Captain FM 20 FM 21 Ferry Master Captain FM 23 FM 24 Effective July 1, 2027 Transportation General Supervisor FM 24 FM 25 Assistant Cook Central Sterile Processing & Distribution Aide DOT Rest Area Attendant TC/FM TC/FM Custodian 09 10 Maintainer Storekeeper Assistant Mail Handler Trainee 1When increasing from one grade to another the round up methodology is used which takes the wage from the old grade and replaces it with the next highest wage in the new grade.

This potentially lowers the employee’s current step therefore increasing the number of AI increases the employee is eligible for in the future.

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56 Other Adjustments - The table below provides a summary of additional adjustments that were part of the agreement and their associated costs.

Salary-related adjustments result in corresponding increases to fringe benefit costs.

Other Adjustments Summary Description FY 27 FY 28 FY 29 Fire Crash Standby (CT Airport Authority) 1,820 1,820 1,820 Shift Differential - Increase by $0.10 - 70,284 70,284 Weekend Differential - Increase by $0.10 - 17,187 17,187 On Call - Increase from $1.50 to $2.00 - 247,000 247,000 DOC Mail Handler Unpleasant Duty $0.20 Increase - 4,909 4,909 Salary Related Subtotal 1,820 341,200 341,200 Meals 85,000 85,000 85,000 Shoes Allowance Increase - 86,000 86,000 Non-Salary Related Subtotal 85,000 171,000 171,000 TOTAL OTHER ADJUSTMENTS 86,820 512,200 512,200 Fringe Benefits – Social Security, Medicare, and unemployment insurance fringe benefit costs will be incurred based on the salary related provisions in the contract.

The current rate is 7.75% of salary to account for these three benefits.

Retirement – The state’s contribution to the state employee retirement system on behalf of active employees for future benefits is 3.34%, and subject to change based on the annual actuarial valuation.

Costs are likely to be higher than estimates due to employees in this bargaining unit having various retirement classifications.

The identified wage provisions also increase the costs to the pension plans associated with increased liability costs which will not be fully recognized in the state's actuarially determined employer contribution (ADEC) until FY 30.

Additionally, the state pays defined contribution and Other Post Employment Benefits (OPEB) match incurring at a rate of 1.78% of salary.