C. A compromise on pensions with an UpsidePension was the most difficult aspect of the discussions, because the parties did not come from their common basis. The administration has strived to achieve enormous savings through immediate and devastating changes to pension benefits for almost all current employees. They attempted to delay the COLA by five years for all new retirees, to immediately increase the retirement age for Levels II and IIA by three years, by generating past and future years of service, by eliminating all overtime and a number of other pension payments, and by creating a new maximum for the calculation of income to retirement. They tried to immediately ask for 25 or 50 years of age from all the employees of the dangerous service. They were aiming for a new phase III, which not only took all these changes into account, but had an average of five years instead of three, and a new starting age in pre-retirement from 60 to 15 years of service. Finally, they aimed for a 20% contribution share for all new retirees, including those who worked until retirement age. We have tried to protect the calculated expectations of current employees, even beyond the current expiry of the contract in 2017 (if nothing is actually settled legally). We have also tried to correct the current Phase II endpoint, a complex formula in the current agreement that, over time, reduces the pension benefits of current workers, particularly those of low-paid workers. The result was a difficult compromise, but in line with our basic principles and with considerable advantage.
As part of the 2017 SEBAC agreement, lawmakers called for regular « stress tests » to test the viability of the SERS and TRS pension funds. The 2019 stress test showed that changes in 2011 and 2017 have sharply stabilized the state pension fund. Former Governor Dan Malloy, whose government negotiated the 2011 and 2017 agreements with SEBAC, said, « The analysis shows that the steps we have taken to restructure and reform SERS have been incredibly effective. » SEBAC will not aim to make more sacrifices for government employees who have already given so much to the people we serve. Our 2017 agreement will save Connecticut taxpayers $25 billion over the next 20 years and help fill chronic budget deficits that jeopardize vital public services. Connecticut`s latest reforms were passed in 2017 and a fourth-tier retirement plan with a lower pension multiplier (1.3%) Created. but also the addition of a small defined contribution component (1% contribution from the employee and the employer). Staff contributions are higher and include a new component of risk sharing. The agreement included an overall 2% increase in all workers` pension contributions. The parties agreed that from 2022, retirees would see changes in their cost-of-living adjustment (COLA) – from a minimum value of 2% to a price index for the initial 2%, then 60% of that increase, and a delay in pensions that receive their initial COLA at 30 months after retirement. Risky workers continue to see their normal pension requirements increase, as well as more effective coverage for their pension overtime.