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·       Summary of SEBAC Provisions

·       Active Healthcare

The following would be the changes in active employee health benefits:

·        Prescription co-pays:

o       $5 for generic;

o       $10 for preferred brand name;

o       $25 for other brand name (about 15% of prescriptions), list will be available from Caremark before change

o       With medical report, non-preferred brand at $10 co-pay, not $25;

o       Phase in time to allow current users of non-preferred brand to change, or get medical report to continue using non-preferred brand at $10 rate if medically necessary; and

o       Strengthen current mandatory generic substitution by requiring doctor to certify that brand is medically necessary to get favorable co-pay treatment.

·        Premium cost sharing -

o       Premium shares increased $13.46 per pay period ($350 per year) 

·        Close Preferred Plan to new entrants -

o       Actives and retirees (who leave after 6/30/09) may not switch in any future open enrollment and then return to Preferred plan; and

o       Future retirees may select plan only if enrolled in Preferred plan as an active employee at retirement.

·        Co-pays on routine preventive care decreased as follows:

o       Continue free well child care;

o       Adult physical examinations per carrier/plan schedule - decreased to $5; and

o       Routine gynecological examinations – decreased to $5, including examinations and pap smear per carrier/plan schedule.

·       Pension

The following would be the retirement incentive and change in pension contributions:

·        Retirement incentive program (RIP) for full and part-time employees:

o       Age 55 with 10 years of service; or

o       Working in hazardous duty with 20 years of actual service;

o       Employees in the State Employees Retirement System (SERS) receive credit for 3 years of retirement;

o       Comparable credit for employees in Teachers Retirement System (TRS).

o       $6,000 incentive for employees in Alternate Retirement Program (ARP) and;

o       ARP and sick/vacation payouts deferred, paid in 3 installments from 2012-14.  If total payout is $2000 or less the state can make one payment.

• Deferral of State's contributions to SERS and Other Post Employment Benefits (OPEB) of $128 million over two years to assist with fiscal crisis.

·       Retiree Healthcare

No change in rules for healthcare premiums for retirees. Eligibility modified as follows:

·        "Rule of 75" for retiree healthcare for deferred vested retirees (employees who leave state service before retirement eligible) only –

o       For all new employees and current employees who have less than 10 years of actual State service as of 7/1/09;

·        For direct retirees hired on or after 7/1/09, 10 years actual state service required for retiree healthcare;

·        No change in rules for disability retirees or in "SEBAC 5" language concerning impact of layoff or expectation of continued employment;

·        Active employees contribute 3% towards retiree healthcare during first 10 years of employment beginning 7/1/10;

o       Applies to new hires, and to current employees with less than 5 years, but with credit for years already worked;

o       Contributions are refundable -

·        Refunds for those who leave prior to 7/1/12 payable after 7/1/12 with 3% interest from date of separation until receipt; and

·        Made in 3 installments if refund exceeds $5,000.

o       Contributions prior to 7/1/13 available to reduce budgeted general fund payments to retiree health care; and

o        Contributions after 7/1/13 deposited to Trust Fund.

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UHP Wage and Furlough Tentative Agreement:

Introduction:

As part of the SEBAC concession talks, the state of CT has asked all of the state employee unions to give concessions in wages and furlough days through the end of June, 2012.  The individual bargaining units had some leeway in how to deal with these concessions but the parameters were set around some core needs of the state.  The state wanted one furlough day in FY 2009 to be taken before June 1, 2009, 3 days in fiscal year 2010, and 3 more in FY 2011.  The end date of the bargaining units current contract drove the wage agreement.  The following is the tentative agreement that will be voted on by the membership of UHP.  The SEBAC provisions (pension and healthcare) are  the same for all state employees and do not differ by bargaining unit.

In order to help resolve the budget shortfall that currently affects the State of Connecticut in general, and the University of Connecticut Health Center in particular, the University of Connecticut Health Center and the University Health Professionals have agreed to amend and modify their July 1, 2006 through June 30, 2010 Collective Bargaining Agreement in accordance with one of the following contingencies.

1.       If the final adopted biennium budget of the Connecticut General Assembly for the University of Connecticut Health Center includes the additional Fringe Benefit Differential in each year (currently 13.5 million dollars), the agreement for wages and furlough days will be as follows:

a)      For the period of time between May  22, 2009 and June 17, 2010 the salaries of all UHP employees will be reduced approximately 1.5% .  This is 28 pay periods and is the time period required to fund the equivalent of 4 furlough days for each employee on a prorated basis.  The employees will be given four days off that will not be charged to their vacation or comp or personal time*.

b)      Effective June 18, 2010 all employees will return to the pay plan that was in place on May 21, 2009.

c)       Effective October 8, 2010 all employees will be given a 2.0% GWI.  This is a delay of 7 pay periods.  The step increase (and payment of lump sum) will go into effect on 4/21/2011.  This is also a delay of 7 pay periods.  This delay pays for the 3 furlough days for the FY 2011.  The employees will be given three days off that will not be charged to their vacation or comp or personal time*.

d)      Effective 7/1/2011 all employees will receive a 2.5% GWI. The step increase(and payment of lump sum) will go into effect 4/6/2012.

This will extend the current UHP contract from an end date of June 30, 2010 until June 30, 2012.

                * It is not feasible for all employees to take certain fixed dates as their furlough days and it is necessary to have flexibility to assign alternate dates as furlough days.  When assigning days, unless notice is waived by the mutual consent of the employer and the employee, the employer shall give the employee at least two (2) weeks notice of each designated furlough day.  Absent extenuating circumstances, once an employee has been notified of a designated furlough day, it shall not be unilaterally changed by management.  The scheduling of such furlough days shall be with the goal of avoiding any additional costs to the employer and the need to schedule replacement coverage.  If an employee elects not to take any one or more of the designated furlough days, the employer is under no further obligation to provide any alternate furlough days under this Agreement.  For those areas that can assign bargaining unit employees one or more of the fixed furlough days, the following days will be utilized: May 22, 2009; July 6, 2009; November 27, 2009; December 24, 2009; July 2, 2010; November 26, 2010; and December 27, 2010.  The Health Center may substitute alternate fixed days by area as determined by management if they better suit the needs of the Health Center.  Any new hires will be assigned furlough days on a prorated basis.

2.       If the final adopted biennium budget of the Connecticut General Assembly for the University of Connecticut Health Center does not include the additional Fringe Benefit Differential in each year (currently 13.5 million dollars), the parties agree to changes in the collective bargaining agreement as follows:

a)      There will be no salary increase in July 2009 or step increase in January 2010. 

b)      There will  be a 2.0% GWI in July 2010 and a step increase in January 2011.  (This is a delay of one year from the contracted increases.

c)       There will be a 2.5% GWI in July 2011 and a step increase in April 2012. 

The contract will be extended until June 30, 2012.  UHP bargaining unit members shall not be required to take any mandatory furlough days for the life of this Agreement.  Employees who have suffered a decrease in pay due to the implementation of the furlough day provisions shall be reimbursed for the reduction in their salaries represented by the reduced pay plan put into effect, without interest.  Employees who have taken furlough days shall have the day(s) charged to an appropriate accrual in order to be paid for that day, or take an unpaid leave day (it will be the employee’s choice).