SEBAC 2017 Agreement Benefits Overview

Transcription

1 SEBAC 2017 Agreement Benefits Overview Department September of Human 2017 Resources

2 SEBAC 2017 Agreement State Employees Bargaining Agent Coalition (SEBAC) Ratified by union members and approved by State of CT Legislature on July 31, 2017 Includes information regarding wages, furlough days, and benefit changes Presentation to follow focuses on benefit changes only: Based on Human Resource s interpretation of language in agreement pending implementation by the State Official communications from the State prevail

3 Benefit Changes Healthcare Benefits Healthcare Contributions Pension Benefits Pension Contributions Retiree Healthcare Benefits Retiree Healthcare Premiums New Hires

4 1 Healthcare Benefit Changes Prescription Drug Non-HEP Copays Generic $5 Brand Name CVS/Caremark Standard Formulary Emergency Room Copay Outpatient Labs/Diagnostic Imaging Preferred Non-Preferred Waived if admitted, refunded if Waiver Request is approved Current Effective 10/1/2017 $10 maintenance $20 non-maintenance $25 maintenance $35 non-maintenance In-Network 100% $5 Preferred $10 Non-Preferred $25 $40 Prior authorizations to fill certain drugs $35 $ % Preferred 80% Non-Preferred Out-of-Network Applicable only to POS 80% 60% Smart Shopper Program Select In-Network Providers Effective after 10/1/18 Reduced copays Rebates on certain procedures

5 2 Employee Healthcare Cost Sharing Percentage Change Union Employees (current average is 12%) 1% increase 7/1/19, max of 15% 1% increase 7/1/20, max of 15% 1% increase 7/1/21, max of 16% Non-Union Employees (currently 18%) No change

6 3 Pension Benefit Changes SERS COLA Prior to 7/1/2022 Starting 7/1/ % of annual increase in CPI-W up to 6% Plus 75% of annual increase in CPI-W above 6% 60% of annual increase in CPI-W up to 6% Plus 75% of annual increase in CPI-W above 6% Formula Minimum: If CPI-W increases 2% or less 2.00% Increase in CPI-W If CPI-W increases by more than 2% 2.00% 2.00% Maximum 7.50% 7.50% First payment on earlier of Jan or July 1st following # pension checks 9 30 If during first 18 months of retirement, CPI-W increases by more than an annualized 5.5%, additional COLA amount is added. Additional amount is equal to the Formula minus 2.5% multiplied by 1.5.

7 4 Pension Contribution Changes - SERS Tier 1: Prior to 7/1/17 Starting 7/1/17 Starting 7/1/19 1% 2.5% 3% 2% 3.5% 4% 4% 5.5% 6% 5% 6.5% 7% Tier 2 0% 1.5% 2% Tier 2A 2% 3.5% 4% Tier 3 2% 3.5% 4% Hybrid Tier 2: 5% (3% to State, 2% to ARP) No Opt Out 6.5% (4.5% to State, 2% to ARP) 7% (5% to State, 2% to ARP) Opt Out Option 5.0% (4.5% to State,.5% to ARP) 5% Hybrid Tier 2A 5% 6.5% 7% Hybrid Tier 3 5% 6.5% 7% Option: Reduce Retiree Health Fund contributions by 1.5% for 1 year and pay an additional ½% for 4 years starting 7/1/19

8 4 Pension Contribution Changes - ARP Before 7/1/17 Starting 7/1/17 Starting 7/1/19 Employee Contribution: 5% No Opt Out 5.75% 6% Opt Out Option 5% 5% Employer Contribution 8% 7.25% 7% Total 13% No Opt Out 13% 13% Opt Out Option 12.25% 12%

9 5 Retiree Healthcare Benefit Changes Retirements 10/1/17 or earlier No changes Retirements 10/2/17 or later Same changes as active healthcare benefit changes

10 6 Retiree Healthcare Premium Changes Retirements through 10/1/17 Starting 10/2/2017 Starting 7/1/2022 Retiree Health Employee Share (non-medicare eligible) Non-Hazardous Duty with fewer than 25 years service 1.50% 3.00% 5.00% Non-Hazardous Duty with 25 or more years service 1.50% 1.50% 5.00% Hazardous Duty 1.50% 1.50% 3.00% Medicare Part B Reimbursement Standard Premium 100% 100% 100% Income-Related Adjustment 100% 100% 50%

11 7 New Hires - Healthcare Plan design same as current employees Employee share of premiums Union employees 3% higher than 7/1/17 rates (max 16%) Nonunion employees same as current nonunion rates (18%)

12 7 New Hires Tier 4 and Hybrid Pension Plan Design Differences from Tier III 1.3% multiplier for each year of service Overtime used in Final Average Earnings, not to exceed 60% of base: Average OT hours worked during the last 25 years times average hourly base rate during 5-years used when calculating Final Average Earnings Hazardous duty retirement requires 25 year minimum

13 7 New Hires Tier 4 and Hybrid Pension Contribution Differences from Tier III Employee contribution is 3% higher, plus up to an additional 2% for adverse actuarial performance Mandatory 1% contribution to 401a, matched by the State

14 7 New Hires ARP State contribution: 6.5% Employee contribution: 6.5% Reduced contribution option: 5%

15 7 New Hires Retiree Health Care 3% Retiree Health Fund contributions: 15 years