SR 9 — RESOLUTION PROPOSING APPROVAL OF A TENTATIVE AGREEMENT BETWEEN THE STATE OF CONNECTICUT AND THE CONNECTICUT STATE EMPLOYEES ASSOCIATION (P-3B BARGAINING UNIT).

Senate General Assembly SenateFile Resolution No.

9720 January Session, 2021 LCOSenate Resolution No.

81579 ReferredSenate, toMay 25, 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 LCOSR9 8157/ \\PRDFS1\SCOUSERS\FORZANOF\WS\2021SR-00009-R01File ofNo. 1 SB.docx

720 1 SR9 File No.

720 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 Fund- FY 21 FY 21 Agencies Affected Effect $ Annualized $ DCF, DOC, MHA GF - Cost 39,672 50,152 Comptroller Misc.

Accounts (Fringe Benefits) GF - Cost 6,685 8,451 Municipal Impact:

None Explanation The resolution proposes approval of an agreement between the State of Connecticut and the Connecticut State Employees Association (P-3B) bargaining unit for State School Principals 1 and 2.

This agreement affects seven employees.

This agreement would move the Principals in the Departments of Correction (DOC), Mental Health and Addiction Services (MHA), and Children and Families (DCF) into the Education Professionals (P-3B) bargaining unit.

This agreement is effective from passage through June 30, 2021.

The estimated impact to FY 21 and the annualized cost is reflected in the table below.

CT State Employees Association (P-3B) School Principal 1 and School Principal 2 FY 21 FY 21 Components:

$ Annualized $ FY 21 - 3.5% General Wage Increase (GWI) - DCF 7,250 7,529 FY 21 - 3.5% General Wage Increase (GWI) - DOC 15,193 16,189 FY 21 - 3.5% General Wage Increase (GWI) - MHA 3,922 4,179 FY 21 - 2% Annual Increment (AI) - DCF 2,284 4,745 SR9 / File No.

720 2 SR9 File No.

720 FY 21 - 2% Annual Increment (AI) - DOC 4,787 9,943 FY 21 - 2% Annual Increment (AI) - MHA 1,236 2,567 Longevity 5,000 5,000 Total Earnings 39,672 50,152 Social Security, Medicare, Unemployment - 8.15% 3,233 4,087 OPEB - 3% 1,190 1,505 SERS - 5.7% 2 2,261 2,859 Total Fringe Benefits 6,685 8,451 TOTAL 46,357 58,602 1Source:

May 7, 2021 Roster from CORE-CT.

2The SERS impact will not be recognized until FY 23.

Wage Provisions – This agreement establishes wage increases where employees will receive a General Wage Increase (GWI) of 3.5%, retroactive to June 19, 2020, as well as an Annual Increment (AI) of 2% effective January 1, 2021.

All employees shall have a January 1 st annual increment date.

Longevity will be paid to five employees, $500 twice a year.

Fringe Benefits – Social Security, Medicare, unemployment, and retiree health related fringe benefit costs will be incurred based on the wage related provisions currently in the P-3B contract.

The current social security rate is 7.65% of salary.

The current unemployment rate is 0.5% of salary.

The current state contribution towards retiree health rate is 3%.

The estimated fringe benefit costs to the General Fund is $4,423 in FY 21, annualized at $5,592.

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

The pension impact of the wage related provisions assumes an average normal cost SERS rate of 5.7%.

The total estimated retirement cost is $2,261 in FY 21, annualized at $2,859.

The increased costs to SERS will not be recognized in the state's actuarially determined employer SR9 / File No.

720 3 SR9 File No.

720 contributions (ADEC) until FY 23, as the FY 21 contribution is based on the June 30, 2019 actuarial valuation.

Funding Availability – The DOC, MHA, and DCF agencies did not include funding for this contract in their FY 20 - FY 21 budget request.

The Reserve for Salary Adjustments (RSA) General Fund account for collective bargaining costs associated with unsettled contracts currently has adequate funding to transfer to DOC, MHA, and DCF.

Lastly, the provisions of this agreement remain in effect until a subsequent agreement is negotiated by the parties.