Revised Sebac 2011 Ta

8/6/2019 Revised Sebac 2011 Ta

1/28

REVISED SEBAC 2011 AGREEMENT-between-

STATE OF CONNECTICUT-and-

STATE EMPLOYEES BARGAINING AGENT COALITION (SEBAC)In orde r to assist in resolving the fina ncial issues currently fa cing the State of Connecticut w hilepreserving pu blic services, the S tate of Connecticut a nd the State Employees Bargaining AgentCoalition agree to th e follo w ing provisions. This agreement shall am end and supersede thepre viou s SEBAC 2011Agreement..

I. SAVINGS AND TRANSFORMATIONThe parties have explored and wil l continue to explore and, whe re app ropriate, implem entstrategies to :

a. Harness the crea tivity and experience of fron t-lin e bargaining and non-ba rgainingunit state employees to improve the efficiency and effectiveness of stategovernment;b. Streamline and flatte n organizational structures to concentrate on service delivery;c. Examine and redress barriers to the m ost efficient use of in-house resources toaddress agency and cross-agency needs;d. Discourage the use of outside contractors and consultants when internal capacityexists or can reasonably be deve loped ; ande. Ma ke best efforts to ensure th at vendors and service provide rs doing business w iththe state d o so at reasonable rates of return and under terms th at reflects theshared sacrifice be ing asked fro m all sectors of Co nnecticut s ociety.As part of this process, the follow ing steps w il l be taken:a. Establish a Joint Labor Ma nage men t Inform atio n Technology Com mittee as soon aspossible that wil l consider, amon g other things, uti l izing new technologies andreducing licensing procurement and consulting costs. This Committee shall beheaded by the Chief Information Officer of the State.b. Establish a Joint Labor Manageme nt Com mittee, no later than September 1 , 2 0 1 1 ,which w ill begin to exp lore the issues, outlin ed in subparagraphs (a) - (d) above,except issues that impact on matters of collective bargaining.c. The Governo r will issue an Executive Order or similar appr opria te directive to stateagencies tha t wil l implem ent subparagraph (e) above, no later than June 1 , 20 1 1 .


2/28

II . MODIFICATIONS TO THE CURRENT SEBAC PENSION AND HEALTH CAREAGREEMENT

Reaffirmation of the Independence of the Plans. The parties reaffirm th at the StateEmployee Pension and Hea lth Care plans are set fo rth in contrac t, and are intend ed toand shall remain independ ent of any other pension or health care plans tha t may or m aynot be created by state governme nt. Neither the legislature nor the governor shallhave the ability to include the state employees' health care plan in Sustinet or any otherprogram.A. Health Care Preservation and Enhancement of Current Plans and Joint Efforts.

Except as specifically referenced h erein , all th e prov isions of 1 997-201 7 Pension andHealth Care Agre em ent, as am end ed, shall apply. None of the ben efit levels, accessrequirem ents, including doctors and hospitals or basic plan structures are m odified bythis agreem ent. Any impact on current retirees shall be based on their voluntarypa rticipa tion e xcept as specifically provided her ein. There shall be no increase in costsaffec ting curren t retirees as a result of this agreem ent. Changes affecting fu tu reretirees shall be effective October 2, 2 0 1 1 . There is no change in curr ent plans except asspecifically noted o therwise below.There shall be no additional costs to employees from choosing the health enhancem entprogram , but there w il l be increased premium shares and a deductible for those w hodecline to e nroll in, or fail to com ply with (after app ropriate notice), the healthenha ncem ent pro gra m. As is curren tly the case unde r the State Health Plan, anymedical decisions will continue to be made by the patient and his or her physician.1 . The parties s h a l l :

a. Institu te a $35.00 Emergency Room Copaym ent when there is a reasonablemedical alternative and the individual is not a dm itted to the h ospital;b. Require both medical vendors (currently Anthem and Oxford/United) toimplement existing plan rules consistently.

c. Maximize the oppo rtunity for members to choose to use patient-centeredmedical homes;d. Provide appropriate medical follow-u p to minimize hospital readmissions post-

surgery and /or o ther init ial hospital stay;e. Provide for purely volun tary particip ation in Obesity redu ction and Tobaccocessation programs;f. Make the current pharmacy mail in program for maintenance medications:

i. Ma ndatory after the first prescription for a new m edication for activeemployees and current retirees under the age of 65, and after October 2,2011 for new retirees . Each copa ym ent for active employees and newretirees after October 2, 201 1 is one for each ninety (90) day supply.


3/28

ii . Volun tary for curre nt retirees age 65 or over. Once such individuals o ptin at any open enrollmen t, continuing participation is ma ndatory. Thereshall be no copayments for cu rrent retirees wh o begin participating inthe Pharmacy Ma il in program ;iii. Participants may at the ir option choose to receive their ma nda tory m ailorder at any local pharmacy tha t wishes to participate in th emaintenance drug network.

g. Implem ent the follow ing Pharmacy copayments for actives and new retireesafter October 2, 2 0 1 1 : $5/10/25 (generic/preferred brand/other brand) formaintenance drugs (except for the low er copaym ent for l isted diseases underthe hea lth enhancement plan set for th in 2c) and $5/2 0/35 f or non-ma intenancedrugs.2. Health Enhancement Program

This volunta ry enha ncement program shall be made available to all state employees andretirees (including all enrolled dependents) du ring each open enro llment as part o f all of thePoint of E nrollment and Point of Service plans curr ently a vailable. All benefits andrequirements wil l be the same as currently available to state e mployees, retirees (including allenrolled depend ents) except as specifically wr itte n below. It shall include a wr itte ncom mitm ent (Attachment Bl ) to the requirements of the program in order to be admit tedand rem ain a dm itted to the program , including agreed upon he alth assessments and screeningsdesigned to provide early diagnosis and appropriate inform ation to patients so tha t they andtheir doctors can choose the best treatment of any illness; This program is designed toenhance the abil ity of patients with the ir doctors to make the most inform ed decisions abou tstaying healthy, and , if ill, to tr ea t the ir illness. As is currently t he case under th e State H ealthPlan, any medical decisions will continue to be made by the patient and his or her physician.See Attachm ent B 3

a. Cost: There shall be no additio na l costs to em ployees fo r choos ing theHealth Enhancement Program. The premium share for employees andretirees shall be as de term ined by the existing Pension and H ealth CareAgreement.b. Copayments shall be w aived (Diabetes) or reduced ($0/5 /1 2.50 ) fo r drugsprescribed for the followin g chronic co nditions:

i. Diabetes, both Type 1 and 2ii . Asthm a and COPDiii. Heart failure/hea rt diseaseiv. Hyperlipidemiav. Hypertension

c. Office visit copayments shall be waived for treatm ent and m onito ring of theconditions in subparagraph 2b above;


4/28

d. Participants in the Health Enhancement program will be expected toparticipate in the disease counseling and education programs outlined inAt tachment B 3.e. Participants will also be expected to adhere to the med ically approve dschedule for screenings and wellness visits with waiver or rebate of

copayments for such services as set forth in Attachment B2.f. Participants w ho are covered by th e plans de ntal program shall be requ iredto get tw o free de ntal cleaning per year.g. Participants who choose not to a dhere to the requirements o f the HealthEnhancement program w ill be given appro priate notice and opp ortun ity toimp rove. The financial incentives for participation in the hea lthenhancement program shall be removed from members who themselves or

whose covered dependents fail to comply with the requirements of theprogra m. They may return to the H ealth Enhancement Program only uponcom ing into compliance and no sooner than the first day of the mo nthfollo w ing their dem onstration of compliance. Removal from the programshall no t, in any case, be based upon th e de cision of any pa tient as to thetre atm en t they receive, or on the progress or lack of progress in thetre atm en t of their i llness. It shall not be based on any other factorwha tsoever except for the refusal of the p atient to get required tests andscreening, and if applicab le, to particip ate in one of the five (5) listed diseasecounseling and education programs. Any remova l shall be only upon priornotice to and the review by the Health Care Cost Containment Co mm ittee.The HCCCC w ill resolve all disputes abo ut com pliance. The parties recognizethat the implementation of the Health Enhancement Program will raiselegitimate and unanticipated issues of compliance such as the inability toschedule wellness physical examinations and screenings with in a specifictim e fra m e. The parties therefo re agree that disputes wil l be decided on astandard of fairness and the oppo rtunity available to the mem ber or his orher enrolled dependents to substantially comply with the requirements ofenro llmen t in the Health Enhancement Program.

h. No me mb er otherwise in compliance w ith the Health Enhancement Programshall be charged ad ditional prem ium or otherw ise disadvantaged because heor she - despite m aking best reasonable efforts - is unable to achieve thecompliance of a covered dependent not in that mem ber's legal custodypursuant to a divorce decree or legal separation agreem ent.

i. No insurance vend or shall receive any financia l incentive or ben efit fro m theadmission of any member to , or the removal of any member from th e healthenhancem ent program . The program shall be designed to encourage andreward participation of members in the program and not to remove thefinancial incentive from any member except one who chooses afterappropriate notice and opportunity to correct, not to comply with thespecific written requirements of the program.


5/28

j . Patients in one of the listed disease educa tion and counseling programs shallreceive a $100 cash payment if the mem ber and all dependents com ply in agiven year with the ir com mitm ent t o the he alth Enhancement Program. Payis th e sam e for each class of coverage, i.e., same for indiv idua l, one plus one,fa m ily or FLES.3. Impact for Employees and Future Retirees Declining the Health EnhancementProgram

Employees, and future retirees after October 1 ,20 1 1 , wh o decline participation inthe Health Enhancement Program or wh o are removed from participation p ursuantto 2g, wo uld pay an additional $1 00 per mo nth in premium share. This add it ionalcost shall be the same fo r individ ual, one plus one , fam ilies, and "FLES" coverage.There wil l also be a $350 per person annual ded uctible, maximum $1400 fo rfam ilies, fo r services not otherw ise covered by copaym ents. No fam ily shall bedisadvantaged for the purposes of this ma ximum by the use of FLES status.4. Denta l PlanThe present dental plans shall continue to be offered to state employees. Theprem ium share for employees and retirees shall be as determ ined by the existingPension and Health Care Agre em ent. There shall be no lim it on period onta l care fo rmem bers who are in the Health Enhancement Program.B. Retiree Health Care

1 . Premium Structure for New Retirees (retiring after October 1,2011) - Currentprem ium structure o f retiree health care remains unchanged for those choosing thehealth enhancem ent progra m. Declining by the retiree, or fail ing after a ppropriatenotice to comply with the health enhancement program by either the retiree orthe ir covered depen dents, wil l result in a prem ium share increase of $100 permonth .2. Health care premiums for Early Retirees - The parties have agreed to a grid,Attachment C, where health care costs (for health care eligible individuals) are imposedon individuals who elect early retirement unti l they reach their normal retirement date,or age 65, whic heve r is earlier. The grid will also be applied to ind ividuals who areeligible fo r a deferred vested benefit (for health care eligible individuals) that elect toreceive their benefit be fore age 65 until they reach age 65 or their norm al retirem entage, whichever is earlier. No early retiremen t health care premium w ill be charged forany em ployee wh o has 25 years of service as of July 1 , 2011 who retires before July 12013.

3. Employee Contribution to Retiree Health Care Trust Fund (OPEB) - Employeescurren tly paying the thre e percent (3%) contributio n into the Retiree Health Care TrustFund wi ll continu e to pay such am ount. All such employees shall pay the three perce nt(3%) contribution for a period of te n (10) years or retirement, whichever is sooner. Allindividuals hired on or after July 1, 2011 shall pay the three percent (3%) for a period often (10) years or retirement, whichever is sooner, even if they had periods of prior stateservice. Individuals who a re not paying the thre e percent (3%) con tribu tion on June 30 ,2013, shall begin paying a con tribution . For these individuals, the contribu tion shall be '


6/28

phased in paying 1/2% effective the first day of pay period after July 1, 2013; increasedto 2.0% effective the first day of pay period after July 1 , 2014 and increased to 3.0%effective the first day of pay period after July 1 , 2015. The contr ibut ion wou ld cont inuefor ten (1 0) years for a ll employees or until retir em ent , wh icheve r is sooner. EffectiveJuly 1, 2017, the State will begin to contribute into the Retiree Health Care Trust Fund inan amo unt equal to a mo unt con tributed by employees in each year. The trust fun d shallnot be used to pay the retiree health care costs of any employee already retired prior t othe effective d ate of this agreement. The obligation to use the funds solely to pay theretiree healthcare costs of individuals con tributing to th e funds (or to return the fundsto individuals contribu ting but n ot qualifying for re tiree health care) shall be perm anen tand irrevocable, notw ithstand ing the expiration date of this agreement. The Trust Fundshall be administered by the State Treasurer.


7/28

4. The following shall replace the provision entitled "R etiree Insurance for Employeeshired after July 1 ,1 997" in SEBAC V as amend ed by the provisions of the 2 009SEBAC Agreement.

Retiree Health Insurance: Employees w ith 10 or more years of actual state service as ofJuly 1 , 2009 shall be entit led to retiree health care under the practice in effect unde r t heterms the Pension and Health Care Agreement, as amended, but prior to the changeseffected by SEBAC 2009 and this agreement. Employees w ith few er than ten years ofactual sta te service as of July 1 , 2009, shall be subject to th e req uirements of SEBAC2009, including the rule of 75 for deferred vested retirees, and shall also require 15years of a ctual state service, except that no current employee w ho w ould haveotherwise been eligible for retiree healthcare und er the provisions of SEBAC 2009 shallbe denied eligibil ity for retiree healthcare due to the 1 5 year requireme nt. All otheremployees shall be required to meet the rule of 75 and to have 15 years of actual stateservice unless they transit ion directly from em ploym ent to norma l or early retirem ent.Such employees who transit ion d irectly to normal or early retiremen t shall not berequired to mee t the Rule of 75 but shall be required to have 15 years of actual stateservice. An em ployee w ho is eligible for and begins receiving a Disability Retirem entBenefit shall be entitled to health insurance as a retired state employee regardless ofhis/her number of actual state service. Nothing herein restricts the ability of anemployee to begin receiving his/her retireme nt or deferred vested pension at an earliertim e in accordance with plan provisions. An employee w ho termina tes state service anddoes not immediately begin to receive his/her pension shall be entitled to the samehealth insurance benefits as active employees receive at the time he/she begins toreceive pension payments. Provided, however, laid off employees and employees wholeave state service because there is not a fair assurance of con tinued em ploym ent shallbe entit led t o retiree health insurance at such time th ey are en tit led to and beginreceiving an Early or Normal Retirement Benefit under the plan. Nothing herein shallchange the me thod of calculation of service for pa rt t ime facu lty of the constituent unitsof higher education.

C. SERS Pension1 . Salary Cap - The maximum salary th at can be considered as part of an ind ividual'spension benefit is the amount outlined in Section 415 of the Internal Revenue Code.2. COLA - The min imu m COLA shall be tw o percent (2.0%) and the max imum COLAshall be seven and one-half percent (7.5%) for those individua ls re tiring on or a fterOctober 2, 2011.3. Early R etirem ent Reduction Factors - For individuals re tiring on or after Octobe r 2,

2 0 1 1 , the early retirement reduction factor shall be changed to six percent (6%) for


8/28

each year before the individual wou ld be eligible to take unreduced NormalRetirement.4. Current employees who re tire afte r July 1,2022 - The follow ing changes do notapply to individuals who retire under the Hazardous duty provisions of the plan.Norm al R etireme nt eligib ility increases from Age 60 and 25 Years of Ben efit Serviceor Age 62 a nd 10 Years of B enefit Service to Age 63 and 25 Years of Be nefit Service

or Age 65 and 10 Years of Benefit Service. This change affects all years of bene fitservice earne d on or a fter July 1 , 2 0 1 1 . By July 1 , 201 3, current employees maymake a one-time irrevocable election to begin paying the actuarial pension cost ofma intaining the norm al retirem ent eligibil i ty tha t exists in the present plan which isscheduled to change effective July 1 , 2022 . The cost shall be established by thePlan's actuaries and shall be comm unicated to employees by the RetirementDivision. Such election shall be made on a form acceptable to th e RetirementCommission and shall indicate the em ployee's election to p articipate or n ot t oparticipate. In the event the employee fails to make an election, he/she shall not beeligible to p articipa te. In th e event the em ployee m akes a successful claim to th eRetirement Commission of agency error, the employee shall make payments inaccordance with usual practice.

5. Tier II, IIA and Tier III Breakpoint - The parties wil l m eet and discuss a mo dificationto th e Breakpoint that w il l be effective fo r service earned on and after July 1 , 2013.The revised breakpoint w il l be designed so tha t the pension a mou nt for individualsearning under the current b reakpoint w il l be increased. The cost of such change inBreakpoint shall not increase the Employer Normal Cost more than .5% of payroll inany year. The formula change and costs shall be provid ed by the Plan's Actuaries. Inthe eve nt the parties are unable to agree on the revised Breakpoint, the ma tter shallbe referred to the a rbitrator a ppointed u nder the terms of the Pension Agreem entand governed by the provisions of CGS sec. 5-278a and th e terms of this agreement.

6. Tier III - A new retirem ent t ie r shall be established, known as Tier III, for individualshired on or after July 1 , 2 0 1 1 . The plan shall be the same as Tier IIA, includ ing th eemployee con tributio n, with Norma l Retirement e ligibili ty Age of 63 and 25 years ofben efit service or Age 65 and 1 0 years of bene fit service. Early Retirem ent eligibilityshall be Age 58 and 10 years of ben efit service and Hazardous Duty Retirem enteligibility shall be the earlier of age 50 and 20 years of ben efit service or 25 years ofbene fit service, regardless of age. In ord er to q ualify for a Deferred Vested Bene fit,the individu al m ust have 10 or mo re years of bene fit service. In all cases, the bene fitshall be calculated on the individua l's highest five year a verage salary.

7. Hybrid Defined B enefit/Define d Contribution Plan for Employees in HigherEducation - Individuals hired on or after July 1, 2 01 1 otherwise eligible for th eAlternate Retirement Plan (hereinafter referred to as "ARP") shall be eligible to bemem bers of the new Hybrid Plan in additio n to their e xisting choices. Individualswh o a re curren tly m embers o f the ARP shall be eligible to joi n the Hybrid Plan on aone tim e op tion at the ful l actuarial cost. The Hybrid plan shall have definedbenefits id entical to Tier II/IIA and Tier III for individuals h ired on or a fter July 1 ,2 0 1 1 , but shall require employee con tributions three percent (3%) higher than th e

8


9/28

con tributio n required fr om the Applicable Tier II/IIA/III Plan. An employee shall havethe op tion , upon leaving state service, of accepting the defined be nefit am ount, orelecting to receive a return o f his/her contributions t o th e Hybrid Plan plus a fivepercen t (5%) em ploye r m atc h, plus fou r pe rcent (40/0) intere st (he reinafter referre dto as the "cash out o ptio n" . In the event the e mployee elects the cash out op tion ,he/she shall perm anen tly waive any entit lem ent they may have to health insuranceas a retired state employee unless they convert the cash out o ption to a periodicpayment as would be required under the current ARP plan.

8. Continuation of Overtime Presumptions and Implementation of Add.t.onalCovered Earnings RulesThe parties' understand ing tha t all overtime in certain units is mandatory fo rpurposes of Sections 5-1 62(b), 5-1 92( f)(0, and 5-1 92(z)(c) of the genera statutesshall con tinu e. Effective July 1,2014, the language of tho se sections shall bechanged to that reflected in attachment D.

D. Mo nitoring o f funding status of the Pension and Retiree " T ^ ^ ^ ^Care Cost Conta inm ent Com mittee and the Pension Cornm.ss.on shall on a quarterlybasis report to th e parties on the progress of achieving full funding w ith respert to th eRetiree Heathcare and the Pension Plans, respectively. No add itional cost shall accrueto e ither pa rty or the fun d as a result of such mon itoring .

III. SCOPE (OJE) and FIVE-YEAR AUDIT DATESThe parties have agreed tha t the c urrent practice for f ive (5) year reviews will continueand OJE ad justm ents may be resolved for jobs which th e Union believes havesubstantial changes in duties through interim bargaining and ,f necessary a rb it ra lo n^(rather than th rou gh th e Master Evaluation Com mittee). Th.s w.ll be applied to all OLROJE covered units New positions w ill be subject to b argaining and arb itratio n one yearafter their cre ation and an individual being in the po sit ion, whichever is later. Theimp lem enta tion date for resu.ts of any five (5) year audit or a rbitration shall bedeferredto no earlier than July 1 , 201 3. There shall be no retroact.v.ty prior t o Ju y 1 , 2013 andno new costs created by bargaining or arbitration shall take effect prior to July 1 201 3.This provision shall not p revent the implem entation of OJE adjustments agreed to orordered prior to the effective date of this agreem ent.IV. JOB SECURITY .A Job Security for Office of Labor Relations -Covered Units. The follow ing jobsecurity p rovisions shall apply to all OLR Covered un its wh ich agree or haveagreed to contracts or m odified contracts in accordance with the 201 1Agreement Framework including the provisions for wages and other changeswhich are summ arized in Attachment A.1 From the July 1 , 201 1 and through June 30, 201 5, there shall be no loss of

em ploym ent fo r any bargaining unit em ployee hired prior to July 1 , 2 0 1 1 ,


10/28

including loss of em ploym ent due to programm atic changes, subject to thefol lowing condit ions:a. Protection from loss of employm ent is for perma nent employees and

does not apply to : 'i . employees in the init ial wo rking test period;

ii . those wh o leave at the natural expiration of a f ixedappointmen t ter m , including expirat ion of any'employmentwith an end date; :

iii. expiration of a temporary, durational or special appointment;iv. non-renewal of a non-tenured employee (except in units

where non-tenured have permanent status prior to achievingtenure) ;

v. term inatio n of grant or other outside fundin g specified for aparticular posit ion; 'vi . part-t im e em ployees who are not eligible for hea lth insurance

benefits. !b. This protec tion from loss of employm ent does not prevent the Statefrom restructuring and/or eliminating posit ions provided thoseaffected bum p or transfer to another com parable job In accordancewith th e terms of the attached im plementat ion agreement. Anemployee w ho is laid off under the rules of the imp lem enta tionprovisions below because of the refusal of an offered posit ion wil l notbe considered a layoff for purposes of this Agreement.

c. The State is not precluded fro m noticin g layoff in ord er to accom plishany of the a bove, or fo r layoffs outside the July 1 , 2011 -June 30, 2015t ime per iod .2. The Office of Policy and Management and the Office of Labor Relationscommit to continuing the effectiveness of the Placement & Training Processduring and beyond the biennium to fa cil itate the carrying out o f its purposes.

3. The State shall con tinue to utilize the funds previously established fo rcarrying out the State's comm itments under this agreement and to facil itatethe Placement and Training process.B. Imp lem ent atio n Provisions for SEBAC 2 01 1 Job Security for OLR Covered Units.The process outlined in this section is a supplement to the October 18, 2005 Placementand Training Agreement and is designed to govern the procedure utilized in situationswhe re there are employees covered by the Placement and Training Agreement w ho areimpacted by a decision to close a state facility or make other programmatic changeswhich would have resulted in the layoff of state employees but for the Job SecurityProvisions of SEBAC 2 0 1 1 , and transfers necessary to dea l w ith wo rkloa d issuesnecessitating the transfer of state employees to different work units, locations orfacilities. The provisions here und er shall expire as of June 30, 2015, unless extended bymutual agreement of the parties. The State will continue to provide the longest possible

10


11/28

advance notice as provided in Section 7d of the Placement and Training Agreement tothe unions and em ployees im pacted by such decisions. The process described belowshall be known as the Job Security Implem entation ("JSI") Process.1 . There shall be a three-pha se process as follo ws :

a. Phase I. The State shall use its best efforts to atte mp t to combine theplacement and transfers of individuals in the event of multiple closings andprogram ma tic changes occurring wit hin a the same period of t ime toma ximize the likelihood of success.i. Init ially affected employees wo uld enter the Placement and Training(P&T) process.

ii . May use norm al P&T rights,i i i . In add ition , the Secretary of OPM shall use best efforts to make

comparable jobs available within acceptable geographic radius(defined below). Such jobs wil l typically be in the affected employees'bargaining unit,

iv. Comparable jobs within the same bargaining unit shall be initiallyoffered to affected employees on the basis of layoff seniority asdefined in their collective bargaining agreement and, if necessary,state service,

v. Any affected em ployee not accepting a comparable job then goes toPhase I I.b. Phase II . The collective bargaining agreem ent (CBA) process begins. Initiallyaffected employees a nd/or secondarily affected employees may thenexercise the ir rights unde r the CBA. The CBA process ends when eithe r (1 )

the affected employee(s) has a comparable j ob ; or (2) the affectedemployee(s) choose to wa ive further contractual displacement rights andenter Phase III.c. Phase II I. Finally any remaining affected employee(s) would enter the P&Tprocess.

i. Ma y use norm al P&T rights.ii . In add it ion, the Secretary of OPM uses best efforts t o makecomparable jobs available within acceptable geographic radius(defined below ). Such job w il l typically be in the a ffected em ployees'bargaining unit.

iii. Comparable jobs within the same bargaining unit shall be initiallyoffered to affected employees on the basis of layoff seniority asdefined in their collective bargaining agreement and, if necessary,state service.

iv. If no comparable job available within the acceptable geographicradius, the finally affected employee(s) will be offered other jobswith in th e acceptable geographic radius on a tempo rary basis u nti lcomparable job available, and are red-circled in original pay-grade.

11


12/28

Employee may be offered tra ining through th e P&T Com mittee as away of m oving employee to a posit ion comparable to the one los t,

vi . No employee shall have a right to a prom otion under this process,vii. Affected em ployee refusing an assignment with in the acceptable

geographic radius dur ing Phase 3 of the process may be laid off, bu tw ill have all usual rights of laid off employees.2. Relevant definitions which apply to this process only and shall not be utilized forany other purpose:

a. "Comparable jo b" means one with similar duties and the same orsubstantially similar biweekly salary range. The requirem ent t o offer acomparable job shall not be met if the target job requires a hazardous d utyretirement covered employee to move to non-hazardous duty retirementem ployme nt, or vice versa.b. "Acceptable geographic radiu s" for Phase I means a one wa y co m m ute equa lto the greater of his/her present com mute o r thirty (30) miles fro m his/he r

wo rk location at the tim e of notice. During Phase III, acceptable geographicradius means a one-way com mu te equal to the greater of his/her presentcom mute or thirty (30) miles from his/her home. In the event that the re isno opportun ity with in the applicable thirty (30) mile mea surement, the Statewill provide an opportu nity w ithin a fifty (50) mile radius based upon th eapplicable measurement. In the event an opportun ity becomes availableprior to July 1 , 2017 with in the applicable thirty (30) mile l im itatio n, theimpacted individual shall be offered such position before it is offered to anindividua l w ith lesser rights. In the eve nt the individua l declines suchposition w ithin th e applicable thirty (30) mile measurement, the State has nofurthe r obligation to offer another po sit ion to such individual based upon th egeographic res triction.

c. Ma nner of me asurem ent. The parties have agreed to utilize Ma pQu est,shortest distance for positions offered in Phase I and MapQuest, shortesttim e fo r po sitions offered in Phase III.3. Priority, Working Test Period Issues, and Related Issuesa. Employees needing positions thro ug h the process outlin ed in this Section B(as compared to the normal P&T process) have priority over other claimantsto position based on the SEBAC 2011 job security provisions. Provided,however, seniority under the CBA may be utilized for the purpose of shift

selection in the target facility.b. Where a job is offered to comply w ith the rules of this Section which wo uldrequire the completion of awo rking test period, failure of the e mployee to

successfully complete tha t wo rking test period wil l return the employee tothe process outline d in this Section B, unless the reasons for the failur ewo uld c ons titute just cause for dismissal from state service. The processoutlin ed in this Section B terminates as of June 30, 2015, or when th ere is noemployee remaining with rights to the process, whichever is later.4. Dispute Resolution

12

v.


13/28

a. "W ork n ow , grieve later" applies as usual to JSI related grievances.b. Placement &Training Com mittee to convene for emergency advisory

procedure if employee claims he or she is being inappropriately laid off inviolation of the JSI procedure.

c. Any arb itrat ion necessary to resolve a claim tha t an em ployee is being denieda suitable comparable assignment under this agreement shall receive priorityprocessing for purposes of assignment of an arbitrator, a hearing date, andresolution of the arbitration. Any dispute or arbitration under this agreementshall be under t he SEBAC agreem ent process.

5. Transfer Implicationsa. Wh ere staffing disproportions other tha n throu gh agency consolidations, the

process outlin ed in this Section B w ill be used to eliminate t he necessity of atransfer (directly or through layoff notice). If there is more than oneemployee in the impacted classification, the State shall ask the em ployees inlayoff seniority order and, in the event there are no volunteers, the junio remp loyee shall be transfe rred.b. In cases wh ere involunta ry transfe rs occur, affected em ployees shall havethe right of f irst refusal to return to th eir p rior geographic locations prior t oan equivalent position being offered at the prior geographic location to a lesssenior person.

C. Job Secu rity for Units Not Cove red by OLR.Job security for other units has been or shall be negotiated on a unit-by-unitbasis consistent wi th the 2011 Agreemen t Framew ork, including the provisionsfor wages and other matters which are summa rized in Attac hm ent A.

V. ADD ITION AL CONTRIBUTIONS BY THE STATE TOWA RDS UNFU NDED LIABILITYIN PENSION A ND/O R RETIREE HEALTH CARE

The Governor has author ized the Chief Negot ia tor for the State to communicate th eGovernor 's com mitmen t to appropr ia te consideration o f addit ional state contr ibut ions t o w a rd slong-term unfu nde d l iab i li t ies of the state, inc luding pension and ret iree health care, in yearswhere the re exists a state surplus..

VI. TENTATIVE AGREEMENT, SUBJECT TO RATIFICATION AND APPROVAL BY THEGENERAL ASSEMBLY

By the ir s ignatures below , the part ies ind icate tha t th is tenta t ive agreem ent has been approve dby the G overnor, and pre l im inar i ly recommended by SEBAC Leadership for ra tif icatio n by th emembership, subject to th e em ployer(s) offer ing appropr iate un i t agreements to th e bargain ingunits. SEBAC's f ina l approva l is subject to a post-membership vote by SEBAC Leadership inaccordance w i th SEBAC rules. This agreement is furth er subject to the approval of the GeneralAssembly in accordance w ith the provis ions of Connecticut General Statutes 5-278(b).

13


14/28

VII. DURATION.The provisions of the current SEBAC Agreement shall be extended until June 30, 2022.

A - J # J > ^J CAJ


15/28

ATTACHMENT AState of Connecticut an d SEBAC - Recommended Agree ment on Savings, Transformationaland Financial Issues and Framework for JobSecurity (hereinafter referred to as the "2011

Agreement Framework") concerning Wages and Other mattersThe State and SEBAC recognize tha t wages and othe r m atters are nego tiated on a bargainingunit basis by the union designated as the exclusive bargaining representative for th at unit.However, the State and SEBAC have agreed that the following parameters shall apply to allunits seeking th e job security prote ctions of the SEBAC 2011Agreement.A. The follow ing pa rame ters shall apply to w age agreements throug h June 30, 201 6:

1 . Wag e increases for FY 2011 -12 and FY 2012-13 - Except as provide d below , no stateemployee w ho is represented by a bargaining unit tha t is part of SEBAC will receive anyincrease in salary or payments for either o f the next tw o fiscal years deriving from aGeneral Wage, step increase, annual incremen t, paym ent for individuals who w ere atthe ir to p step as a bonus, a merit increase or any similar payment fo r the FY 2011-12and FY 201 2-1 3. As this agreement was not ra tif ied prior to the tim e FY 2011-12payments may have been made to some employees, effective the first day of the payperiod following ratif ication of this agreement any payment referred to above for FY201 1 -1 2 shall cease and the em ployees' salary shall be th e same as it was prior to suchincrease. In the event any lump sum paym ent was mad e to any such employee, thevalue of the lum p sum paym ent shall be divided by twenty -thre e (23) and the resultantam ount shall be deducted from th e em ployee's pay in equal amounts over the nexttwenty-three (23) pay periods.Individuals e ntit led to a prom otion in accordance wit h th e rules governing thesesubjects as outlined in the Connecticut General Statutes or their collective bargainingagreement shall receive increase in wages due to such promotion in accordance withpast practice. Me mb ers of the P3A bargaining unit shall be entit led to share in th econtractually created Merit Pool fund in the amount and manner provided in thecontrac t and past practice.

2. Wag e increases for FY 2013-14, FY 2014-15 and FY 2015-16 - Provide a Three percen t(3%) increase plus step increases, annual increm ents o r the ir e quivalent in those unitstha t have the m as part of their collective bargaining agreement. Non-increment unitswill receive additional payments in accordance with the parties' usual practice.Correc tional Supervisors (NP-8) shall receive an increase of thre e and on e-half percen t(3-1/2%) for the FY 2013-1 4 as they had previously negotiated that amount in theirexisting collective bargaining agreem ent. Provided , how ever, the wage increases for FY2013-14 shall be delayed by the number of pay periods the increases were paid toemployees in FY 2011 -12 p rior to ratif ication of the agreem ent. For example, ifemployees receive increased payments for three (3) pay periods prior to ratification ofthis agreement, the increases for FY 2013-1 4 shall be delayed for three pay periods after

15


16/28

July 1 , 201 3. Provided, how ever, employees wil l be made wh ole for the difference inpercentage between the July 2011 increase received, and the wage increase effectiveJuly 201 3.3. Funds and other payments - All other funds (e.g., tu i t ion re imbursement) and other

wage payments e.g., shift differential, allowances, etc., shall remain in place andcontinue in the same am ounts presently in the respective collective bargainingagreem ent, except to the extent otherw ise called for in the collective bargainingagreements. The current collective agreements shall be extended until June 30, 2016and unexpended fun d a moun ts shall roll over year to year. Any unexpended funds shalllapse or sha ll not lapse as of June 30, 2016, in accordance wi th present rules.

4. Captains and Lieutenants, Supervisors in the Depa rtmen t of Public Safety (NP -9) - Thisunit w il l negotiate and arb itrate the provisions of their collective bargaining agreementthrou gh June 30, 2016. They wil l be governed by the oth er portions of the SEBAC 201 1agreement as outlined herein.

5. University o f Connecticut Health C enter (AAUP) - This unit w il l negotiate a newcontract w hich wil l be sub mitted as part of this Agreement or separately in the eventthis ag reeme nt is no t ratif ied by SEBAC. If ratified , this un it will be governed by theoth er portion s of th e SEBAC 2011 Agreement as outlined herein.B. Longevity

1 . New Employees - No employe e first hired on or after July 1 , 201 1 shall be e nt i t ledto a longevity paym ent; prov ided, however, any individual hired on or a fter said datewho shall have military service which would count tow ard longevity under c urrentrules shall be entit led to longevity if they obtain the requisite service in the fu ture .

2. Current Employees - No service shall count tow ard longevity for the t w o (2) yearperiod be ginning July 1 , 2011 thro ug h June 30, 2013 . Effective July 1 , 201 3, anyservice accrued d uring tha t p eriod shall be added to th eir service for the purpose ofdeterm ining their eligibil i ty and level of longevity entit lem ent if i t wo uld havecounted when performed.3. Capped units - Individuals in units w ith capped longevity shall not receive alongevity paym ent in October, 201 1 .4. Uncapped units - The employer representative and the bargaining unit with

uncapped lo ngevity sha ll meet a nd discuss the issue of long evity. The parties shallagree on a procedure by which individuals in those units shall contribute an a mou ntequal in value to the a mo unt tha t was contributed in the Capped units. Default isthat uncapped units will give up longevity using the Executive Branch Bargaining unitschedule.

16


17/28

C. Non-economic Terms of contracts. Unions tha t do n ot agree to extend their bargainingagreement unchanged can open up to a maximum of eight (8) issues that have deminimus cost and are identif ied no later than August 31 , 2 0 1 1 . The Union must notifythe O ffice of Labor Relations or the appropriate em ployer representative with in tw oweeks of the da te the Tentative Agreement is signed of its intent to open the contractas to nonec onom ic issues. In the even t the union decides to reop en their co ntract, theState may likewise open up to a maximum of eight (8) issues with a de minimus cost.Negotiation shall begin on these issues no earlier than September 1 ,20 1 1 , unlessotherwise agreed to by the parties. Only these issues may be submitted to interestarb itra t ion.

D. Expiration date of individual collective bargaining agreements. All individual collectivebargaining agreements shall expire effective June 30 ,201 6

17


18/28


19/28

Ages 6 -17 once every yearAdult Wellness Physical Examinations:

Ages 18- 39 every thre e yearsAges 40- 49 every tw o yearsAges 50 + every year

Preventive ScreeningsCholesterol screenings every five years from ages 20-29(typically done through a bloodtest in conjunction w ith th e schedule of wellness physicals above.) every tw o years fr omAges 40-5 0; every year fro m Ages 50 +Clinical breast examination fo r wom en by their health care provider every three years;mam mogram s as recomm ended by your physician; one screening ma mm ogram forevery fema le m emb er w ho is between age 35 and 39.Cervical cancer screening every three years commencing at age 21Colorectal screenings beginning at age 50 consisting of screening option s as decided byyour physician which options include colonoscopy every ten years; CT colonoscopywhich may be an appropriate alternative to a colonoscopy; or annual fecal occult b loodtest.Vision exa mina tion: every two yearsDenta l cleanings: tw o free cleanings per year fo r participa nts. Participants not enr olledin dental coverage through the State Health Plan do not have to meet this screeningrequirement.As to all of the above listed and described screenings, no employe e or enro lleddependent shall be required to get a listed and described screening which is against therecommendat ion of a physician or other health care professional.

B3 . Disease Counseling and Education ProgramsAs is currently th e case unde r the State Health Plan, any medica l decisions will con tinue t o bemade by you and your physician.Employees and their enrolled dependents in the Health Enhancement Program will haveavailable and agree to particip ate in disease counseling and educa tion program s whic h consist

19


20/28

of the follow ing components and these are the com ponents you must m eet to fulf i l l you rcom m itme nt to th e Health Enhancement Program. These programs only apply to thoseemployees and their enrolled dependents in the disease states l isted in the description of th eHealth Enhancement Program and in the a uthorization letter signed by the emp loyee indicatinghis or her desire to be in the Health Enhancement Program.You will be contacted by a health care counselor familiar w ith th e specific program applicableto yo ur cond ition or conditions wh o will explain current strategies to c ontro l the disease; youw ill receive materials to help you and your enrolled dependents to better un derstand andcon trol or eliminate the disease condition; and you wil l be provided a variety of on-line a nd /orprinted support tools and materials to furthe r assist you .

20


21/28

Attachment C - Hea lth Care Premiums for Certain Early Retirees

%"S52

r r s t a r t y15

JL6171 819202 12 22 3241251

540.00% i37.00% 134.00%i31.00% i28.00%!25.00% 122.00% 119.00% i16.00% 113.00% 110.00%!

432.00%29.60%27.20%24.80%22.40%20.00%17.60%15.20%12.80%10.40%

8.00%

3124.00%!22.20% 120.40%!18.60% i16.80% i15.00% 113.20% i11.40% |

9 .60%!7.80%!6.00%!

216.00%i14.80% 113.60%!12.40%i11.20%!10.00%l

8.80%!7.60% i6.40% 15.20%l4.00%l

18.00%7.40%6.80%6.20%5.60%5.00%l4.40% 13.80%!3.20%l2.60% i2.00%!

Note 1 : Actual healthcare prem ium percentages areprorated by months. I f few er than 15 years of

se rvic e, use 15. If over 25, use 25. If mo re than 5 !years ea rly, use 5.

Note 2: The prem ium for any given em ployee wi l l becapped at 25% of the p erson's actual pen sionben efi t , except that the person's actual be nefi twi l l be prorated for employees w ho are less thanful l - t im e. No early ret i reme nt health careprem ium w il l be charged for any em ployee wh ohas 25 years o f service as of July 1 , 2011 who ret ires!before July 1 , 2013

21


22/28

Attachment D - Statu tory Changes with Respect to Caps in Covered EarningsThe follow ing shall take effect on July 1 , 2014 :Sec. 5-1 62. Retirement date and retirement income, (a) The retiremen t income fo r wh ich amem ber is eligible shall be determined fro m his retirem ent date, years of state service and basesalary, in accordance with the schedule in subsection (c) or (d) below, whichever is appropriate,(b) On and a fter January 1,1984, "base salary" means the a verage covered earnings received bya m emb er fo r his thre e highest-paid years of state service, disregarding any general te mp oraryreduction or any reduction or nonpay ment fo r i l lness or othe r absence which does not exceedninety days; and "covered earnings" means the annual salary, as defined in subsection (h) ofsection 5-154, received by a member in a year, l im ited by one hund red thirty percent (130%) ofthe average of the tw o previous years' covered earnings; except that the l imit shall be 150% forthose individuals earning man datory o vertim e. Current practice in those units wh ere allove rtime is presumed ma nda tory for this purpose shall be maintained . The limit does not applyto earnings for calendar years before 1984 or for th e first three full or partial years ofem ploym ent. The Retirement Commission may adopt regulations in accordance with chapter54 determining the procedure to be fo l lowed fo r a mem ber who was not employed on a fu l l -t im e basis for the entire tw o previous years used to develop such limit.Sec. 5-1 92(f)(c) and Sec. 5-1 92(z)(c). "Covered earnings" means the annual salary, as definedin subsection (h) of section 5-154, received by a mem ber in a year, l imited by one hun dredthi rty percent (130%) of the average of the tw o previous years' covered earnings; except tha tthe l imit shall be 150% for those individuals earning ma ndatory o vertim e. Current practice inthose units whe re all overtim e is presumed m anda tory for this purpose shall be mainta ined.Because comp ensa tion may be artificia lly red uced , for exam ple as a result of leaves or absenceon Wo rkers Compe nsation, the a ppropriate year's compe nsation wil l be substituted for anyyear when th e com pensation is artif icially reduced. The limit does not apply for the first thre efull or pa rtial calendar years of em ployme nt. The Retiremen t Commission may a doptregulations in accordance with chapter 54 dete rmin ing the procedures to be follow ed w hen th emem ber was n ot em ployed on a full-t ime basis for th e e ntire tw o previous years used todevelop such lim it.

22


23/28

Attachment E:Retiree Hea lth Care for Teachers Retirement System Covered Employees(1) any payments toward s retiree health care by TRS covered state employees un dersection 1 0-183(b)(7) of the gene ral statutes shall cou nt against th e retiree he alth carecon tribution otherwise due from tha t employee for that year; (2) for purposes ofcom puting any health care premium for an employee retir ing before his or her norm alretirem ent age, a TRS covered employees norm al retire m ent date shall be the earlier ofthe dates he or she could retire norm ally under TRS or the date he or she could haveretired n orma lly were he or she a SERS covered employee; and(3) in all other respects,a TRS covered em ployee sha ll be tre ate d like a SERS employee with the same hire datefor purposes of eligibil i ty for an d/or payments towards retiree health care.


24/28

Attachment F - Actuarial Cost of Maintaining Current NormalRetirement Age Beyond June 30,2022

Use the Charts below t o calculate the cost (beginning July 1 , 2013) of maintaining the currentnorm al retirem ent age beyond 6/30/2 022. This is a one-time decision tha t must be madebefore July 1 , 201 3. Extra contributions w il l not be returned to employees wh o leave before2022 (except those employees wh o left with ou t vesting under current plan rules). Employeesw ho wo rk u ntil the new retirem ent age wil l have their excess contributions , w itho ut interest,returned upon reaching that new normal age.

If you would have 25 years of Service Before You Turn 62As of June 1,2022, how many mon thsuntil you have 25years^f service anda t least age 6QLFill in you r

months Added Contribution to M aintainRetirement Ager- J!Months before 60. Multiply by36 or more 36 .02% 0.72% of pensionable earnings3Sb^feweU .029 ofperisidnabjjgearnirigsi

If you would N OT have 25 years of Service Before You Turn 62As of June 1,2022, how many months until your 62nd birthday?

Months before 6236 or more35 or fewe r

Fill in yourmonths

36Multiply by

.02%

.02%

Adde d Contribution to MaintainRetirementAge.0.72% of pensionable earnings

of pensionable earningsExample 1 : I am curre ntly 47 years old w ith 20 years of service. I wil l the refo re reach 25 yearsof service before I turn 62. I use the to p chart:

Step 1 : Let's say as of June 1 , 2022,1 will be 58 years and 3 mo nths old . That means itis 21 m onths un til I reach age 60.1 will alread y have 25 years of service at th at po int, sotha t m eans I missed my current n ormal re tirem ent age by 21 months.Step 2: I mu ltiply 21 months by .02% wh ich gives me .42% (.0042). That means if I w a n tto avoid the increase in norma l retirem ent age, I wo uld pay an additional .42% startingon July 1 , 2013 u ntil I retir e, (if I'm Tier II, that's all I pay, if I'm Tier HA, I'd pay 2.42%tota l) .

Example 2: I am curren tly 50 years old with 2 years of service. I wi ll ther efo re NOT reach 25years of service before I tur n 62. I use the b otto m chart:


25/28

Step 1 : Let's say as of June 1 , 2022,1 wil l be 61 years and 3 months old . That means itis 9 months u ntil I reach age 62. I missed my current n orma l retirem ent age by 9months.

Step 2: I m ultiply 9 months by .02% wh ich gives me .18% (.0018). That means if I w a n tto avoid the increase in norma l retirem ent age, I wo uld pay an additional .1 8% startingon July 1 , 2013 until I retire, (if I'm Tier II , tha t's a ll I pay, if I'm Tier IIA, I'd pay 2.1 8%tota l)

Example 3 : I am curren tly 25 years old wi th 2 years of service. I wil l the refor e reach 25 yearsof service before I turn 62. I use the to p chart:

Step 1 : Let's say as of June 1,2022,1 wil l be 36 years and 3 months old. That means itmo re than 36 months until I reach age 60. I wil l need to buy the full 36 mon ths.Step 2: I mu ltiply the m aximum of m onths by .02% wh ich gives me .72% (.0072). Tha tmeans if Iwa nt to avoid the increase in normal re tireme nt age, I wo uld pay anaddit ional .72% starting on July 1 , 2013 until I retire, (if I'm Tier II, tha t's all I pay, if I'mTier IIA, I'd pay 2.72% total )

Example 4: I am currently 48 years old with 12 years of service. I wil l ther efore reach 25 yearsof service before I tur n 62. I use the to p chart:

Step 1 : Let's say as of June 1 , 2022,1 wil l be 60 years and 3 months o ld. But I wil l notreach 25 years of service un til August of 2023. I wi ll need to buy the full 13 m onth sbecause I missed my norm al retirem ent age by 13 m ont h.Step 2: I mu ltiply the 13 months by .02% wh ich gives me .26% (.0026). That means if Iwa nt to avoid the increase in normal retirem ent age, I wou ld pay an additional .26%sta rting on July 1 , 2013 unt il I retire , (if I'm Tier II, that's all I pay, if I'm Tier IIA, I'd pay2.26% tota l)


26/28

ATTACHMENT GThe parties have join tly agreed tha t the Questions and Answers below aptly describe the provisions ofthe agreement:

Question AnswerWill state employees who o ptinto the Health EnhancementProgram (HEP) in SEBAC 2 0 1 1have to change doctors?

No. Nothing in the plan changes including choice of d octors,hospitals or t reatme nts. You add the health enhancem ent programto your current plan.

Is it true t ha t some localpharmacies will no longer beable to fill prescriptions for stateemployees if the SEBAC 20 1 1agreem ent is ratified?

Only part ly. There is a new mand atory ma il order p rogram , but i taffects only "maintenance medications" - prescription drugs youtake for a long period of t ime . Other me dicat ions, like ant ibiotics forstrep throat, wi l l cont inue to be available through th e localpharmacies. Even for maintenance medications, the first order forany prescription wi ll be available at the local pharmacy. Renewalswill be delivered by mail to your h ome , w ith a 90-day supplyavailable for a single co-pay. In add it ion, all CVS's, and any oth erlocal pharmacy th a t wis hes to par t i c ipa te in t he maintenanced ru g n et wo rk, m ay serve as a mail drop for those m emberswishing to pick their mail order prescription up at a pharmacy,rather than receive them a t home.You, the state employee, along with your doctor, just as you donow . The HEP is an effor t to get the most num ber o f stateemployees the best informa t ion a bout their hea lth status, andassumes that most people, given the right information, will makethe best treatment choices. There are no penalt ies for making thewro ng treatm ent choices.You must sign a written commitment to get the applicable physicalsand screenings listed in the agreem ent, and if you have one of f ivelisted il lnesses to sign up fo r disease counseling an d edu cation . Youdo n ot make any promise, and wi l l not be judged on wh ethe r youactual ly fo l low any recomm ended tre atm ent a pproach or take anypart icular me dicat ion.No. The State is self-insured, so the insurance ven dors a re sim plypaid fees to a dm inister our claims. Those fees will be una ffectedwh ethe r you choose to p articipate in the HEP or n ot.

Under the Health EnhancementProgram, wh o w ill decide if aparticipating state employee ismaking the best decisions abo uttheir o wn h ealth care?

If there are no treatme ntrequirements for participatingstate employees, what does theHealth Enhancement Programrequire?

Can insurance companies play"gotcha" wit h state employeesparticipating on the HealthEnhancement Program to raisetheir rates?


27/28

If a state employee has one ofthe Health EnhancementProgram's five listed diseases, dothey have to let a third p artymake their healthcare choices ~or pay an extra $1 00 per month?

No. If you have one of the five listed il lnesses, and you choose toparticipate in the HEP, you will get free off ice visits and reducedpharmacy co-pays for your illness . You will also get diseasecounseling and educat ion through programs already adm inisteredby our curren t insurance carriers. But counseling and ed uca tionmeans wha t i t says - y o u w i l l get informa t ion abou t your il lness andtelephone suggestions from a nurse practit ioner or other healthcare professional connected t o the disease counseling andeducat ion program . You are not required to fo l low these - thedecision about wha t t reatm en t to get is up to you and your d octor.Start ing in 2013, current employees who w ere not already paying3% of their salary towa rds re tiree hea lthcare will start to pay Vx%tha t July, increasing to 2% in July of 201 4, and 3% in July of 201 5.They wi l l contr ibute for 10 years, or un t i l they re t ire, whicheverhappens first. They get their co ntribu tions back if they retirewith out qual i fy ing for ret iree hea lthcare. And i f they can show the yhave ret iree healthcare avai lable from another employer, they canwaive coverage.Current employees do not have to m eet the 15-year requireme nt inorder to be el ig ible for ret iree hea lth care. New employees do.

How are employees that w eren'tpaying 3% for retiree healthcaregoing to begin contributing? Andwh at if the y leave state servicewithout qualifying or want towaive coverage?

I'm confused by the wording ofthe new 15-year requirement forretiree healthcare. I understandit will affect all new em ployees.Is there a ny wa y to say moresimply how it will affect currentemployees?

Regarding the new ch art ofretiree healthcare p remiumshares for em ployees wh ochoose to retire before theirnormal retirem ent age, is that inaddition to the premium sharethey wo uld currently pay if theychoose the POS plan?

No. This prem ium is instead of the previously existing prem iumshares.

2 | P a g e


28/28

Is the retiree health care chartfor early retirement in additionto the $100 a month futureretirees w ould pay if they choosenot to enroll in the HealthEnhancement Program?

The $100 a month payment w ould be in addit ion to any otherpremium share owed by a ret iree who declines to enrol l in theHealth Enhancement Program.

Does the language in the newtentative agreement "themaximu m salary that can beconsidered as part o f anindividual's pension benefit isthe amo unt outlined in Section41 5 of the Internal RevenueCode indicate the parties'agreement that hazardous dutymembers who retire at youngerages are approp riately subject toa lower maximum pension?

No. The Agreement ref lects the current fede ral maximum salarycap for pension purposes. This agreem ent does not a ffect theseparate fede ral issue of whic h hazardous duty em ployees arecovered by the po lice and fire exe m ption. The SEBAC unions areJointly seeking to a pply the police and fire exem ption to a llhazardous duty employees to the maximum extent al lowed byfederal law.

3 | P a g e

Documents

Revised Sebac 2011 Ta