State Comptroller Kevin Lembo announced today he is developing an alternative plan to restructure Connecticut’s payments into the cash-starved pension fund for state employees.  Unlike the plan Governor Malloy offered last month in which Tier 1 pension costs would be separated from the pension fund and paid for as a pay-as-you-go budget line item, Lembo's proposal would not split the pension system into two components (Tier 1 and all others).

Lembo isn’t the only official developing an alternative to the governor’s proposal.  State Treasurer Denise Nappier has said Connecticut needs to consider

Republican Legislators suggest the following concessions be pursued in upcoming contract negotiations:

• Requiring all non-hazardous duty workers to contribute 4 percent of their salary toward their pensions.
• Capping cost-of-living adjustments to future retirees’ pensions.
• Calculating pensions using only base salaries (excluding overtime).
• Developing a new, hybrid retirement plan that relies partly on a defined contribution for new workers.
• Suspending longevity payments for all workers after April 2016.
• Increasing state employee health and dental insurance premiums by 10 percent.
• Increasing drug co

Republican legislators laid out a vision for closing a $350 million budget gap that includes an early retirement incentive for state workers. The proposal contemplates that 1,600 state employees would accept the offer. They would be replaced by workers earning less money, saving the state $79.9 million in the current fiscal year and $95.6 million in 2017.  The Republican proposal was presented to Governor Malloy and Democratic legislators yesterday.   For details, read the story in the Hartford Courant

Posted 11/13/2015

Governor Malloy announced last week a sweeping plan to overhaul the state's pension system as well as the desire to reduce the state workforce by 500 employees via attrition. The proposed changes to the pension system would basically split the current system into two parts: those workers that are Tier 1, and those workers that are not, with Tier 1 pensions to be funded separately from all other pension tiers.  The Governor's office indicates this would reduce costs, but it is unclear what, if any savings would be realized.  Pension benefits are negotiated via SEBAC.  SEBAC's position is that

Gov. Malloy’s budget office told state agency heads to postpone cost-of-living increases and merit pay raises for non-union managers until Jan. 1, 2016.  In the same memo commissioners are instructed to review their agencies with the goal of identifying "core government functions". Office of Policy and Management Secretary Ben Barnes said that as budget talks begin there will not be an adjustment to manager's merit pay plan salaries on Nov. 13 “as had originally been planned.” See the entire the story at CT News Junkie.

According to CT News Junkie, Secretary Barnes notified commissioners via

Governor Malloy issued a press release in response to OPMs most recent revenue projections for FY16.   The press release calls for bipartisan meetings on the state budget   The discussions could lead to a special session on the FY16 budget.  Gov. Dannel Malloy (it is not an election year so I think he now goes by Dannel and not Dan) did not mention labor in his press release but did talk about labor at his press conference:

"I think everything's on the table,"  Malloy said. "Labor has to be at the table".

Malloy made it clear that talk of union givebacks is no longer taboo.

The administration