To avoid pension cuts, Connecticut state workers are retiring in big numbers
Nearly 7,000 state employees in Connecticut this year have either applied for retirement or have filed an “intent to retire” by the end of June, according to the state Comptroller’s Office. These state workers have an incentive to leave sooner rather than later.
In 2017, the Malloy administration struck a deal with a bargaining coalition for state employee unions. Under the agreement, workers who retire after July 1, 2022 will receive reduced yearly cost of living increases for their pensions.
Right now, some retirees could receive as much as a 7.5% increase based on the rate of inflation. The minimum increase is 2% for current pensioners. The current national rate of inflation is 8%.
More than 13,000 state employees are eligible to retire at the end of this month.
Governor Ned Lamont negotiated with state lawmakers this year to give $1,000 bonuses to state employees who stay past July 1, 2022.