The state has indicated to SEBAC that the state operates on a cash basis. As such, they claim that "Effective 7/1/17" means something slightly different than what you might expect. For instance, regarding pension contributions, the 2017 SEBAC Agreement language specifies: "Effective 7/1/17 contributions in all SERS Tiers shall increase by 1.5% of salary". Seems straight forward - doesn't it? We thought so. But the state, in its infinite wisdom, with its cash basis claim, is interpreting this to mean that pay period June 23 through July 6, 2017 was paid after July 1, and therefore all earnings in that pay period are subject to the 1.5% pension contribution increase. That is not how we interpret it. And it is not how the members who voted to pass the Agreement understood it to be either. Our interpretation is that "Effective July 1" means just that...it means starting on July 1st - thus earnings from June 23 - June 30, 2017 are not subject to the increase. This is a SEBAC issue and cannot be grieved directly by A&R. However, A&R leasdership will be meeting with the other SEBAC leaders in the coming weeks to determine the best course of action.
- posted 2/16/2018