January 14, 2014
As part of the 2011 SEBAC agreement, the State agreed to put aside 0.5% of its payroll to improve the SERS Tier II, IIA, and III (State Employees Retirement System) breakpoint.
A SEBAC committee representing state employee unions (the 4C’s is represented by NCC’s Tom Jackson) has been meeting over the past year to determine the most equitable way to distribute the set-aside funds. The SEBAC proposal has been approved by the unions and will be approved by the legislature in the 2014 Legislative Session.
The SEBAC proposal will increase the multiplier for final average earnings up to the breakpoint. Currently the multiplier is 1.333% and it will increase to 1.4%. The multiplier for salary above the breakpoint will remain at 1.833% and the way for determining the breakpoint will not change.
“It’s a small increase in the multiplier, but every member in SERS will benefit,” commented 4C’s President Steve Cohen.
So what is the breakpoint and why does it exist?
The SERS formula for calculating pensions includes a breakpoint. Average salary up to the breakpoint is multiplied by 1.333% (soon to be 1.4%) and average salary above the breakpoint is multiplied by 1.833%. A lower breakpoint is good for workers, since the higher multiplier is applied to more of their income.
The breakpoint dates back to when the State created SERS in 1947. It was instituted to compensate higher-earning employees because social security sets a maximum income; for any salary earned above this maximum, the worker does not receive social security. The original theory behind the breakpoint was to create a higher pension multiplier for money above social security maximum to compensate for the lack of social security payments on these earnings.
Originally, back in 1947, the breakpoint was set at a fixed $4,800 for SERS Tier 1. So for those in Tier 1, almost all of their income is above the breakpoint and qualifies for the 1.833% multiplier.
For everybody else, the breakpoint currently increases by 6% a year; a good deal when the economy is booming, but not so good when the economy slows down. In 2014, the breakpoint for Tiers II/IIA/III is $69,200.
The SEBAC Committee considered several options for changing the way the breakpoint is determined, but ultimately opted for a plan that will benefit all SERS participants.
Additional Resources
February 25, 2014
>> Tale of Two Wisconsins Flyer
>> Read a NY Times article: Wisconsin's Legacy for Unions
The union-hating billionaire Koch Brothers have set their sights on Connecticut’s working families.
This forum will help us understand how their puppet politicians like Wisconsin Governor Scott Walker succeeded in stealing wages, pensions and healthcare rights and benefits from public sector workers; and it will show us the devastating impact Walker and his extremist super-rich backers have had on all of Wisconsin’s working families and communities.
Most important, this forum will help us learn how to make sure that Walker/Koch Brothers America never happens here!
Sponsored by the state union coalition, the forum will feature a panel of workers from Wisconsin, as well as breakout sessions to discuss our plan to protect our rights, our families and our communities.
Lunch will be provided. See you there on April 5th!
March 7, 2014
While the Health Enhancement Program has already begun showing positive results in terms of improving health and lowering costs, there have been many glitches and imperfections in its beginning years of implementation. Some of these imperfections have caused members who are fully compliant with the program needless stress as they waited for data to be updated for lagging claims, CMS to update portals or answer phones, etc. For the many thousands of state employees now shown as compliant the 2013 compliance year has been frustrating, but the process is now over, and we can look forward to a hopefully greatly improved and less glitch 2014.
But many other employees are still listed as non-compliant, and still struggling with the frustrations caused by startup glitches, and we want to be clear about how the process moves forward for those employees. Here are the key things to remember;
It is not the vendor (CMS) who ultimately determines if you are compliant and can continue receiving the financial benefits of being in compliance with the HEP. It is the joint Health Care Cost Containment Committee (the “HCCCC”), which is a labor management committee made up of equal numbers of union and management representatives, and if necessary a neutral arbitrator. Nobody can be removed from participation without the HCCCC’s affirmative vote.
If you really are non-compliant, it is in your interest to become compliant as soon as you can. This could prevent your removal altogether, or at very least get you reinstated quickly, depending upon how soon you act. The agreement requires you to be placed back in good standing in the program on the first of the month following your removal.
If you are receiving information from CMS that indicates you are non-compliant, but you believe you are compliant, remember this:
The HCCCC will not remove people who are compliant. If CMS is wrong, they are wrong. It is not their decision.
You will shortly receive a letter which will allow you to respond and directly indicate to the HCCCC that you believe you are compliant and why. Your response will either clear up the issue, or if it doesn’t will cause you to be contacted directly so that the issue can be resolved. Removal happens because a member or his/her covered dependent genuinely refuses to keep a commitment required under the program, not because the portal is inaccurate or incomplete, or claims information is imperfect.
We are proud to be part of a program that saves money by keeping members healthier, rather than by cutting benefits or raising premium shares. We hope that the glitches and frustrations that have characterized this year will at some point truly be behind us. But in the meantime, we appreciate the patience of all the HEP participants, and reiterate our commitment that no one gets removed from the financial benefits of the program unless it is shown to the HCCCC that they genuinely refused to comply.
May 2, 2014
By law, the State is required to competitively bid state employee and retiree health, pharmacy and dental plans every three to five years. The last time the dental plans were competitively bid was in 2009 and United Healthcare took over providing coverage under the Basic and Enhanced plans from the Anthem. This is the year for bidding on the company or companies to provide the coverage required by our contractual dental benefits. The questions and answers linked below cover the results of that competitive bidding. These results are effective July 1, 2014.
July 1, 2014
Principal bargaining unit employees are entitled to a 3 percent (3%) general wage increase (GWI), and step increases or lump sum payments in lieu of step increases for employees already at the top step of their rank. Components of these wage increases are effective as follows:
• 11 & 12 month employees, increase effective 6/27/14, check date 7/25/14 • 9 & 10 month employees, increase effective 7/25/14, check date 8/22/14
Principal bargaining unit members (i.e., full-time faculty, administrators, counselors and librarians working 20 or more hours per week) move from the 2013-14 salary grid to the 2014-15 grid, and advance one step (AI) (up to the top step of the range).
Principal bargaining unit members, who reach the new maximum salary for their classification before receiving the 3 percent (3%) general wage increase in base pay, receive the balance of the general wage increase as a lump sum payment.
July 1, 2014
The U.S. Supreme Court sides with the anti-union argument made by the National Right To Work Legal Defense Foundation, ruling that the mandatory “fair share” fees violate the First Amendment to the U.S. constitution. This decision goes against the union position, however does not extend to all public workers covered by union contracts.
October 8, 2014
In April 2014, 4Cs members joined approximately 750 union workers across the state to hear from Wisconsin public employees whose rights on the job were stripped in 2011. The video below highlights the events and message of that day.
December 19, 2014
In late fall, the 4Cs welcomed two new staff members: Ellen Benson and Kimberly Small. Ellen is the new Communications Director and Kimberly is the Office Manager.
Both staff members have many year of professional experience working for unions. Prior to being hired at the 4Cs, Ellen served in a similar role at the Connecticut State Universities AAUP, and Kimberly comes to us from the Carpenter's Union in Hartford.
Welcome Ellen and Kimberly!