There are 4 items of interest to bring to your attention:
1) General Wage Increase: All A&R members are getting a long awaited 3.5% raise effective today (6/21/19). This will be slightly offset by an increase of a 0.5% contribution to the pension fund. Both changes will show up in the July 19th paycheck.
2) Pension Funding Discussions: The State has asked SEBAC to discuss the pension funding agreement in place since 2016. This is an effort to re-amortize the pension debt and re-structure the state's payment plan. We want to be clear as to what this represents, and what this does not represent: This is about impacting the timing and level of the annual payments made by the state into the SERs pension fund. This is NOT about changing pension benefits. Regardless of the pension funding agreements, the pension benefits will remain in full force. SEBAC unions have no interest in modifying the benefits or any other aspect of the SERs plan or the SEBAC 2017 agreement. This is a pension funding issue only. The state is seeking to achieve annual savings by re-structuring the debt and would need the approval of SEBAC leadership to modify its current payment plan.
3) Pharmacy Agreement: Comptroller Kevin Lembo announced on Wednesday, June 19th that the Healthcare Cost Containment Committee has reached a landmark agreement with CVS/Caremark which will capture the rebates and savings typically offered by the pharmacuetical industry which historically have not been passed on to the State. The Healthcare Cost Containment Committee is a joint labor/management committee overseeing the administration of our medical benefits and costs. This agreement was unanimously approved by the joint HCCC and will produce savings without impacting our phamacy benefits.
4) Newly Accreted Members/Job Titles: Guidance has been given to the impacted agencies to apply the Accretion Agreements passed by the Legislature in the 2019 Session. This means that the agencies should begin implementing the terms of those agreements which include: 3.5% General Wage Increase, the $1000/$2000 payment, and retro-active Longevity Payments for 2018 and April 2019. The TopStepPayment or the 2% increment (in lieu of a Step) will be on time, in January 2020. Lastly, accreted members will be responsible to take one furlough day (if no furlough days were taken between July 2017 and June 2018). The General Wage Increase and retro-active payments should be reflected in your July 19th paycheck.
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