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SB 24

AN ACT PREVENTING OVERTIME PAYMENTS FROM BEING USED TO CALCULATE THE RETIREMENT INCOME OF STATE EMPLOYEES.

2025 Regular Session Introduced by Mark Anderson and 4 co-sponsors

Connecticut bill excludes overtime pay from state employee pension calculations to reduce retirement obligations and lower individual benefits.

PUBLIC HEARING 0328
#overtime #stateemployeeretirement
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WeVote Research Nonpartisan
Bill Summary · SB 24

Legislative bill overview

SB 24 would exclude overtime compensation from the calculation of retirement benefits for Connecticut state employees, meaning pensions would be based only on regular salary rather than total earnings including overtime. This represents a structural change to how the state calculates pension obligations for its workforce.

Why is this important

Pension calculations directly affect the long-term financial commitments states must fund. This change could significantly reduce individual employee retirement benefits while potentially lowering the state's unfunded pension liabilities—a major budgetary concern for Connecticut. The impact varies substantially depending on which employee groups rely most heavily on overtime income.

Potential points of contention

  • Employee compensation impact: Workers in overtime-heavy positions (corrections, emergency services, healthcare) could see substantially reduced retirement income, effectively lowering their long-term compensation packages
  • Recruitment and retention: Reducing pension benefits may make state employment less attractive, particularly for physically demanding or high-stress roles requiring overtime
  • Fairness concerns: Excludes overtime earned during the employee's actual service years, which some argue represents real work compensation already performed
  • Implementation complexity: Determining which earnings qualify as "overtime" and retroactive application to current employees raises administrative questions
  • Fiscal uncertainty: While reducing state pension liabilities sounds beneficial, actual savings depend on workforce composition and overtime patterns that may change over time

Compiled from official sources — confirm details with the bill’s official record.

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