After several months of informal discussions between SEBAC leadership and representatives from the Governor's Office, the parties have produced a framework for a potential agreement. Many issues were discussed. Many tough choices needed to be made to arrive at the framework. Unfortunately in the past few weeks a $450 million free-fall in tax revenue increased the projected biennial deficit past $5 billion, making our insistence on top step payments an untenable position. We recognize the impact this has on many of our members and are exploring other avenues to address the issue. We also recognize the sacrifice all members are again being asked of in the context of the framework. Given the alternatives, we believe the framework offers the best opportunity to protect our pension and healthcare benefits long term while simultaneously providing job security over the next 4 years and reasonable wage increases during a time of $5 billion deficits. Before the framework can be further acted upon by the membership, we need to settle some unresolved issues with the state involving the A&R union contract.
We are faced with many threats, the least of which may be the immediate threat of layoffs. The very benefits that we are trying to preserve and protect for every member are at risk. Had the members not made the unpleasant choice to extend the SEBAC agreement in 2011, the pension and healthcare contract would be expiring July 1 of this year. There would be no automatic extension. We would be negotiating under horrendous multi-billion dollar deficit conditions. We also must take note that the political landscape of the state is in flux. In 2022, we may face a different risk - not the risk of being asked to contribute more to maintain our benefits, but of having them replaced entirely with things of much less value - Discontinuance of our defined benefit plans, expensive insurance plans with high deductibles and sky-rocketing premiums. Even those who are considering retirement soon must recognize that only pensions are secure upon retirement, healthcare is not. There is a tremendous advantage to securing benefits through 2027. If you need examples of what may be in store for us in 2022, please review the GOP House Concession Plan which was unveiled a few weeks ago. It is our hope that we can ride out this time of economic turmoil until the State returns to economic prosperity. The State believes that these changes are necessary to end the shortfalls in funding our benefits and ensure that employee benefits will remain secure long-term.
A SEBAC Framework Slideshow has been produced by AFT CT. It is much more readable than the actual framework and provides insight regarding not only the framework, but also describes how members (assuming all contracts are settled) will be asked to vote on two issues (1) the A&R union contract; and (2) the pension and healthcare agreement. The slideshow describes what the implications are for "yes" and "no" outcomes for each vote.
Many members have asked about Medicare Advantage. Here is an FAQ:
Medicare Advantage frequently asked questions.