Bristol teachers should have learned of the ‘teacher tax” contained in the GOP budget that passed earlier this week with the help of a handful of Democrats. Although Governor Malloy has said he will veto it, there will be increasing pressure for him to sign it as the October 1 deadline for ECS funding looms.

What is the “teacher tax?” Currently, all Connecticut teachers pay 6% of their salary to the Teacher Retirement Board (TRB) for their portion of retirement savings. If Governor Malloy does not veto this budget, teacher contributions will increase to 7% next year and 8 % the year after (an average of $1500 and then $3000 annually), but that additional 1% and 2% WILL NOT go into your TRB, but instead become part of the state’s general fund for expenses. In other words, a tax.

This special tax on teachers would mean most would pay state tax at a higher rate than billionaires!

Mad? Follow this link to quickly and easily contact Governor Malloy.

Here is language from the current state statute regarding teacher contributions toward retirement.

And here is the language passed earlier this week by the legislature.

Here is the relevant part:

7) “Contributions” means amounts withheld pursuant to this chapter and paid to the board by an employer from compensation payable to a member. Prior to July 1, 1989, “mandatory contributions” are contributions required to be withheld under this chapter and consist of five per cent regular contributions and “one per cent contributions”. From July 1, 1989, to June 30, 1992, “mandatory contributions” are contributions required to be withheld under this chapter and consist of five per cent regular contributions and one per cent health contributions. From July 1, 1992, to June 30, 2004, “mandatory contributions” are contributions required to be withheld under this chapter and consist of six per cent “regular contributions” and one per cent health contributions. On or after July 1, 2004, “mandatory contributions” are contributions required to be withheld under this chapter and consist of six per cent regular contributions and one and one-fourth per cent health contributions. “Voluntary contributions” are contributions by a member authorized to be withheld under section 10-183i. From January 1, 2018, to June 30, 2018, inclusive, “mandatory contributions” are contributions required to be withheld under this chapter and consist of seven per cent “regular contributions” and one and one-fourth per cent health contributions. On or after July 1, 2018, “mandatory contributions” are contributions required to be withheld under this chapter and consist of eight per cent “regular contributions” and one and one-fourth per cent health contributions.

Sec. 153. (Effective from passage) (a) For the fiscal year ending June 30, 2018, one per cent of the amount of regular contributions required to be withheld during the period from January 1, 2018, to June 30, 2018, in accordance with the provisions of subdivision (7) of section 10-183b of the general statutes, shall be credited to the resources of the General Fund.

(b) For the fiscal year ending June 30, 2019, two per cent of the amount of regular contributions required to be withheld during said fiscal year, in accordance with the provisions of subdivision (7) of section 10-183b of the general statutes, shall be credited to the resources of the General Fund.

 

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