Bill Summary – FastDemocracy

OFFICE OF FISCAL ANALYSIS
                       Legislative Office Building, Room 5200
                        Hartford, CT 06106  (860) 240-0200
                              http://www.cga.ct.gov/ofa
SR-9
RESOLUTION PROPOSING APPROVAL OF A TENTATIVE
AGREEMENT BETWEEN THE STATE OF CONNECTICUT AND
THE CONNECTICUT STATE EMPLOYEES ASSOCIATION (P-3B
BARGAINING UNIT).
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.
Primary Analyst: DC                                                        5/19/21
Contributing Analyst(s): CP
2021SR-00009-R000720-FN.DOCX                                                      Page 2 of 3
                         CT State Employees Association (P-3B)
                       School Principal 1 and School Principal 21
                                                                             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
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
1 Source:   May 7, 2021 Roster from CORE-CT.
2 The   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 1st
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
2021SR-00009-R000720-FN.DOCX                                                          Page 3 of 3
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
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)3 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.
   Member Overview  There are 7 employees currently classified as
State School Principals (SSP) 1 and 2 who would join the P-3B union.
The employees will remain in their existing range plans, but they will
be retitled SSP in lieu of MP through at least the end of any successor
agreement to the 2016-21 P-3B contract. The agreement will expire on
June 30, 2021.
The Out Years
   The impact of the provisions of this resolution will remain in effect
in future years subject to the outcome of the collective bargaining
process.
3 The RSA account is used to finance collective bargaining and related costs that are not included in
individual agency budgets.
Sources:   Core-CT Financial Accounting System