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Pension Funding Agreement in Jeopardy

WE NEED YOU TO CONTACT YOUR STATE SENATOR TONIGHT

-(Wed Feb 1st)

(List of Senator emails and phone numbers).

Tomorrow the State Senate will vote on the pension funding agreement reached between the Office of Labor Relations (OLR) and the SEBAC unions.  If adopted by the legislature, the pension funding agreement will help to ensure the long-term funding of our pensions, while at the same time normalizing long-term costs to the State.  The agreement is advantageous to the State, the unions, and the citizens of Connecticut.  If defeated, it could be the first step towards the end of collective bargaining altogether.

In their attempt to shake down the unions, powerful forces in the legislature are preparing to defeat the pension funding agreement tomorrow on the Senate floor.  Their ultimate  goal is to do away with collective bargaining.  They want to make Connecticut a "right to work" state.  We know that "right to work" translates as "work more for less".  No surprise they want to hit your pensions too.

If our enemies succeed in defeating the Pension Funding Agreement, we may find ourselves one step closer to experiencing our "Wisconsin Moment".  If that happens, all will be lost.

Please contact your State Senator TONIGHT.  Tell them to support Senate Resolution 7.  Remind them that the Pension Funding Agreement is fiscally responsible or all of Connecticut.  The agreement normalizes pension amortization costs to the state, thus avoiding the Governor's "fiscal cliff" 

Importantly, the Retirement Commission has already reduced the assumed rate of return on investment from 8 percent to 6.9 percent (as recommended per the agreement).  If the changes to the amortization schedule are not also implemented (as per the agreement), the impact will be an additional $500 million dollar hit to an already precarious budget.

OLR agreed.  The Unions agreed.  The Comptroller agreed.  The Treasurer agreed.  Even the Governor agreed: The Pension Funding Agreement is good for Connecticut.  Don't let obstructionist senators, led by Len Fasano, derail the agreement.

Contact your Senator before tomorrow's vote.  Do it before its to late.

List of Senator emails and phone numbers

posted 1/31/2017


originally posted 12/9/2016:

No Change to Employee Healthcare, Retirement or other Benefits or Contributions

Union leaders and the Governor have arrived at a plan that DOES NOT impact retirement benefits or employee contributions.  This is a pension funding change which will ensure that future pension obligations can be met and the pension system remains stable.  This plan will still need approval from the legislature.

We are all aware that the pension fund is far below "fully funded" status.  The Governor had been aiming to pay off the unfunded liabilities by 2032 through increasing annual pension payments.  Each year, the State was committed to increasing its pension fund payments by a few hundred million dollars annually until we reached a payment of $6 billion in 2032, which the Governor consistently referred to as the "fiscal cliff".  This was a growing problem for future state budgets with an increasing public impact.  About a year ago, Comptroller Lembo created an alternate plan and began a conversation which would restructure (some call it re-finance) the pension funding payment plan.  That conversation has continued over the past year.  All parties wanted a plan that would secure our pensions while increasing stability in State budgets.

The “bullet points” of the agreement are best understood by actuaries who review the State’s financial position and to apply a rating to the State’s economic stability and to determine the State’s bond rating.  The “plain english” version of the plan is that this will smooth out annual payments and stretch some of the liability over 30 years rather than all of the liability over just 16 years.  It also improves (makes them more realistic) the actuarial assumptions used to calculate the pension liability.

The bullet points:

  • Reducing the assumed rate of return on investment from 8 percent to 6.9 percent;
  • Transitioning from "level percent of payroll" to "level dollar" amortization over five years;
  • Moving to Entry Age Normal cost methodology;
  • Maintaining 2032 as the payoff date for the unfunded liability accrued through December 31, 1983; and
  • Extending the amortization period for the balance of the unfunded liability in a new 30-year period.

These changes, if adopted by the legislature, will NOT impact benefits or increase any cost to members.

Link to the agreement

Link to the Boston College Pension Funding Report

Link to the S&P Global Rating "revised to negative"

Originally Posted 12/9/16

Possible Swap Opportunity For Payroll Officer 1 : Complete Form

 

Top Step Payment - Fighting for You

Updated 2/21/2017

Many have realized that the Top Step Payment was not included in last months paychecks.  This should not have been a surprise as the State views the Top Step Payment as akin to Step Increases which are not granted when there is no date specified for the Step Increment .  It is A&R's position that the Top Step Payment should be paid, regardless.  As such we filed an institutional grievance for payment.  The Step 2 hearing is scheduled on 2/23/17.  In addition to the grievance:

  • We introduced language at the negotiations table seeking to ensure payment of the top step payment in future years regardless of wage freezes, and;
  • We will seek back-pay remedies in our successor contract for both the Top Step Payment and Step Increases.

Posted 2/21/2017

Mediator has been selected

Mediation dates March 8th & 9th

In an effort to advance contract negotiations, A&R and the State have agreed to mediation.  Our goal is to make progress on some contract language issues.  Although mediation is not binding on either party, it is hoped that tentative agreements can be reached on some of the less contentious contract language issues.

Mediation is much faster and less expensive than arbitration.  These efforts will not prevent or delay binding arbitration procedures, which we are still pursuing.  While some progress can be made via mediation

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AFT CT Scholarships

There are three scholarship programs available each year for AFT-affiliated union members and their families.  As a member of A&R, you have access to these scholarship programs.  The 2017 application windows for these valuable benefits are now open:

  1. AFT Connecticut awards two $2,500.00 scholarships annually; one to a member for their own higher education and another for a spouse, domestic partner or child of a member;
  2. Our national AFT's Robert G. Porter Scholars Program offers one-time $1,000.00 grants to union members and four-year, $8,000.00 scholarships to their dependents;
  3. Union Plus awards grants to members and their families ranging from $500.00 to $4,000.00 each year

AFT - CT Scholarship Information & Application Forms

Posted 1/26/17

Our Union has a long and proud history of awarding academic scholarships to deserving children of its members.  Award winners will be recognized for their accomplishments at the Union's Annual Convention, to be held April 20th.

This year, A&R will be awarding 16 scholarships to qualifying children of members:

  • Ten scholarships in the amount of $1,500 each will go to 2017 high school graduates or seniors who have been accepted to and will be entering a post-secondary educational institution.
  • Five awards in the amount of $1,500 each will go to post secondary students who are continuing their
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