1. UConn-AAUP Informational Meeting #1 SEBAC 2017 Framework June 5, 2017

2. The CT Mirror-May 31, 2017
Calling $1.5 billion in proposed union concessions insufficient given Connecticut’s $5 billion budget crisis, Senate Republicans called Wednesday for legislators and Gov. Dannel P. Malloy to dramatically reshape labor laws to force larger savings in wages and benefits
“We have the power within the legislature to change statutes, prospectively and currently, to achieve savings,” Fasano said. “ … This is the power we have. We don’t have to sit back and wait.”

3. SEBAC/Malloy Began November 2016;
6-months later – “Framework” which may lead to a Tentative Agreement;
Included in Framework:
Guidelines for 5-year Unit Contracts
Modifications to current SEBAC Agreement

4. Guidelines for Unit Contracts
General Wage Increase
August 23, % (Hard Freeze)
August 23, % (Hard Freeze)
July 1, %, One time payment $2,000
Pro-rated for part-time/Adjs
August 23, %
August 23, %

5. Guidelines (Cont.) Longevity Furlough Days
2017 Longevity Payments will be on time
2018 April Longevity Payment will be delayed until July 1, 2018
Furlough Days
Three furlough days to be taken during FY 18. Currently under negotiations as to the exact days.

6. Guidelines (Cont.) 4-years Job Security, consistent with 2011;
Continuation of language to prevent privatization leading to layoffs;
Allow use of sick time for family FMLA;
Allow for more FMLA intermittent leave.

7. Modifications for SEBAC
SERS – All tiers
July 1, 2017: 1.5% increase in pension contribution.
Member may elect to offset this pension increase with a decrease of 1.5% in the Retire Healthcare contribution – currently 3%.
Reimbursement to the Retire Healthcare Trust Fund will be made with a .5% increase in your 3% contribution beginning July 1, 2019 and for the next 3 years.
July 1, 2019: .5% increase in pension contribution.

8. ARP
July 1, 2017
Employer contribution decreases to 7.25%;
Employee contribution will increase to 5.75%, unless the employee opts out of this .75% increase.
July 1, 2019
Employer contribution decreases to 7.0%;
Employee contribution increases to 6.0%, unless the employee already opts out of the .5% increase.

9. Hybrid Always 3% higher than their equivalent SERS Plan (better plan);
Tier IIA and III pay 1.5% increase on 7/1/17 and .5% increase on 7/1/19;
Tier II currently pays 3% to SERS and 2% to ARP.
On 7/1/17, you may opt out of paying additional 1.5% increase with a decrease to ARP of .5%.
On 7/1/19, you may also opt out of paying the .5% increase with a decrease to ARP of .5%. ARP = 0%

10. Tier IV Retirement – Tier IV – Hybrid Plan
Combination of a Defined Contribution and a Defined Benefit Plan
SERS (benefit) contribution additional 3% immediately (5% total);
Define contribution - State contribution 1%, employee contribution 1%, 5% voluntary;
No breakpoint – 1.3% multiplier;
Split the Risk (6.9% return) to max of 2%;
OT effect on base-pay pension may not be greater than 60%;

11. Tier IV 3% Retiree HealthCare contribution 15 year payment;
3% increase to HealthCare premium immediately, capped at 16%;
Hybrid and Hazardous Duty benefits same as Tier III;
ARP – Employer and employee contribution 6.5%.

12. COLA Modifications Effective 7/1/22 - Modified COLA Formula
Increase in CPI-W of 2% or less - receive actual increase;
All other increases covered by current formula;
>2% – minimum COLA of 2% and a maximum COLA of 7.5%
Within range of 2% - 7.5%, calculation will be 60% of annual increase up to 6%, and 75% of annual increase over 6%

13. COLA Modifications (Cont.)
Effective 7/1/22 - First COLA (CPI-W)
Received 30 months after retirement date;
COLA circuit breaker – if CPI-W during retiree’s first 18 months of retirement goes above 5.5% annualized, the COLA is computed using the above formula, minus 2.5%, multiplied by 1.5.

14. Healthcare Costs 3% Retiree Health Care/10 years payment - unchanged
Premium Share Increases – Active Employees (costing handout)
July 1, 2019: 1% increase; cannot exceed 15% total;
July 1, 2020: 1% increase; cannot exceed 15% total;
July 1, 2021: 1% increase; cannot exceed 16% total.
Effective 7/1/17 – New Employees
15% premium share

15. Healthcare Costs Changes
Increased co-pay for non-emergency room visit - $250
Prescription co-pay increase to $5/$10/$25?$40

16. Healthcare Enhancements
Implement a Standard Formulary – prevents price gouging; preferred brands
Member’s doctor – final appeal on necessity for non-formulary
“Smart Shopper” provides rebates for numerous procedures based on quality, safety, and cost of provider. (gift card)
Centers of Excellence – list of highest rated, best cost options for medical procedures

17. Future Retirees Health Care (RHC)
No changes in benefits for Normal Retirees retiring with 25 years or more in service;
“RHC Effective Date” - October 3, 2017, (or 60 days after legislative approval):
Changes in Active health care applied to new retirees
Pre 7/1/22 Premium Share Pre-Medicare
POE 0% Premium share goes to 1.5%
POS 1.%5 Premium share goes to 3.0%
Post 7/1/22 Premium Share Pre-Medicare
POE and POS Premium Share goes to 5%
Post Medicare (age 65): No Premium Share

18. Future RHC (Cont.) Reimbursement of Part B
Pre 6/30/22 Medicare-covered retirees (65) – NO CHANGE
Post 7/1/22 Medicare covered, State reimburses full standard Medicare Part B premium charged by Feds
Post 7/1/22 Medicare covered, wealthier retirees (above $85K yearly income), State will full standard, plus half of any extra amount. (See chart for specifics)

19. Current and Future Retirees
Effective 1/1/18 – Medicare Plan design switches to Medicare Advantage vehicle.
Implementation of recommended tiering of primary care doctors and specialists – reduces co-pays for high value providers.

20. Retirement 60 day window to maintain current benefit;
Change to retiree medical contribution (1.5% to 3%) for new retirees in effect October 2, 2017:
No change for those with more than 25 years of state service; no cost after age 65;
Retiree medical contribution 5% for those retiring after 7/1/2022; hazardous duty 3%. No contribution after age 65;
Medicare Part B - Additional charge imposed (less reimbursement) on those who claim more than $85,000/year on W2.
Disability Retirees must apply for Social Security Disability Insurance (SSDI) – Spouses penalty is removed

21. What is the return for concessions?
5 year SEBAC extension until June 30, 2027;
Job Security (no layoffs) until June 30, 2021;
Preservation of benefits you received when you were hired;
UConn-AAUP Contract
Protection of collective bargaining rights for pension and healthcare until 2027.

22. Timeline
June 13, 2017 – SEBAC Tentative Agreement signed; Collective Bargaining Agreements settled;
June 15 - July 17, 2017 – Voting by members
July 17, 2017 Tally of votes;
Late July, early August – legislative approval of SEBAC TA and contracts