More than 40,000 unionized Connecticut state employees were told Lamont’s administration reached a tentative understanding to keep pension and retiree healthcare terms unchanged until June 30, 2028, at least one year into the next gubernatorial term.
June 30 is the current contract’s expiration date, and Lamont’s budget office said the extension would help agencies avoid another retirement wave and manage staffing after 2022 departures tied to tighter pension limits.
$338 million in overtime spending in fiscal 2025-26 — up nearly 7% from a year earlier — underscored the staffing strain, with more than 95% of costs concentrated in five agencies including Correction and Mental Health.
Ryan Fazio, Lamont’s Republican challenger, called the move a taxpayer-funded political play and said benefits need reform, while GOP legislative leaders said the governor was bypassing the normal bargaining process during a campaign.
The dispute lands in a state still carrying more than $30 billion in unfunded pension liabilities, even after Connecticut directed $11 billion in surpluses to pension funds over the past seven years.