SR 6 — RESOLUTION PROPOSING APPROVAL OF A MEMORANDUM OF AGREEMENT BETWEEN THE STATE OF CONNECTICUT AND THE ADMINISTRATIVE & RESIDUAL EMPLOYEES UNION.

Senate General Assembly SenateFile Resolution No.

643 January Session, 2021 LCOSenate Resolution No.

40786 ReferredSenate, toMarch 11, 2021 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.

SEN.

LOONEY, 11 Dist.

APP Senate Favorable LCOSR6 4078/ \\PRDFS1\SCOUSERS\FORZANOF\WS\2021SR-00006-R01File ofNo. 1 SB.docx

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43 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 22 $ FY 23 $ State Comptroller - Fringe Various - Cost 49,169 53,736 Benefits Various State Agencies Various - Cost 326,210 356,511 Note:

Various=Various;

GF=General Fund Municipal Impact:

None Explanation This resolution proposes approval of an agreement between the State of Connecticut and the Administrative and Residual (A&R) Employees (P-5) Union concerning certain employee classifications.

The agreement moves 62 non-union positions into the A&R bargaining unit.

This agreement covers FY 21 and is retroactive to July 1, 2020.

The job classifications are:

• Banking Department Manager • Banking Assistant Division Director • Chief Property Casualty Insurance Acting RC • Director of Unemployment Insurance Field Services & Adjudications • Insurance Certification Supervising Examiner (Mgr.) • Insurance Actuary • Insurance Program Manager • Labor Department Unit Director 1The fringe benefit costs for most state employees are budgeted centrally in accounts administered by the Comptroller.

The estimated active employee fringe benefit cost associated with most personnel changes is 41.77% of payroll in FY 21 and FY 22.

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43 • Transportation Assistant Planning Director • Transportation District Maintenance Special Services Section Manager • Transportation Maintenance Manager • Transportation Transit Manager • Transportation Purchasing and Stores Assistant Director Total estimated costs associated with this agreement are $375,379 in FY 21 and annualized at $410,247 as reflected in the table below:

Cost Estimate 1 FY 21 $ FY 21 $ Annualized FY 21 - 3.5% General Wage Increase (GWI) 243,017 243,017 FY 21 – Annual Increment 30,300 60,601 Lump Sum at Top Step 20,693 20,693 Longevity 32,200 32,200 Total Wages 326,210 356,511 Social Security, Medicare, and Unemployment 25,709 28,097 OPEB 3% 9,792 10,701 State Employee Retirement System (SERS) 2 13,668 14,938 TOTAL 375,379 410,247 1Source:

March 1 roster from CORE-CT.

The SERS impact will not be recognized until FY 23.

Wage Increases - This agreement establishes wage increases retroactively for FY 21, employees will receive a cost of living adjustment (COLA) of 3.5% retroactive to June 19, 2020, as well as an annual increment (AI) of 2 % starting January 1, 2021.

These wages are estimated to cost $326,210 in FY 21, annualized at $356,511.

Longevity payments are retroactive in FY 21 and will cost $30,200 in both FY 21 and FY 22.

Employees at their top step in the pay SR6 / File No.

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43 scale will receive lump sum payments totaling a cumulative $20,693 in FY 21.

Fringe Benefits – Social Security, Medicare, unemployment, and retiree health related fringe benefit costs will be incurred based on the wage related provisions negotiated in the contract.

The current social security rate is 7.65% of salary.

The current unemployment rate is 0.23% of salary.

The current state contribution towards retiree health is 3%.

The estimated fringe benefit costs are $35,501 in FY 21;

annualized at $38,798.

Impact to Retirement - Employees covered by this contract are members of the State Employees' Retirement System (SERS).

The pension impact of the wage related provisions assumes an average normal cost SERS rate of 4.19%.