Dear GGU Member,
Following is the current status of the approval and funding of the monetary terms of our July 1, 2004 through June 30, 2007 Collective Bargaining Agreement with the State of Alaska:
1. SB 98, the supplemental appropriation bill that contains the appropriation to fund the increased employer health contribution of $29 per pay period ($58 per member per month) retroactive to July 1, 2004, passed both the State House and State Senate today, March 23. The bill now goes to the Governor for his signature. On signing by the Governor the appropriation becomes available for payment to our members.
2. I have been in ongoing discussions over the past few months with the Department of Administration regarding the process that they will use in refunding the contribution retroactive to July 1, 2004. Monday, March 21, I reached an agreement with the State on the process and will be signing a Letter of Agreement in the next few days to formalize that agreement. Following are the important points of the agreement:
A. The State will identify the amount that members should receive as a retroactive payment.
B. The retroactive payment will be made as a payroll adjustment (increase) on one of your regular pay checks.
C. The State will make the retroactive payments no later than the first pay period that occurs 45 days after the effective date of appropriation. The State had originally said they wanted 60 days to identify the members and do the required work to the payroll system before making the retroactive payment. After discussion they agreed to the 45 day time period.
D. The increased employer contribution of $29 per pay period ($58 per month) will appear on your pay check in the same time frame as in C above. When the employers increased contribution of $29 per pay period ($58 per month) appears on your pay check you will see a corresponding decrease in your employee health insurance contribution.
E. The State will also identify those members who have left our bargaining unit since July 1, 2004 and refund them the appropriate amount.
F. The State will identify all members who were in the GGU on July 2, 2004 and deposit one day of leave in the member's annual/personal leave account. Individuals who were a member of the GGU on July 2 but are no longer a GGU member will either receive payment for the day or have a day deposited in their leave account if they are now in another bargaining unit.
G. For any member who was on FMLA, did not have an employer or employee health insurance deduction for that period, and therefore made a direct payment to the ASEA Health Trust for their health insurance premium, the Health Trust will identify those members and be responsible for making the refund directly to the individual members.
3. The approval of the 1 1/2 % pay increase effective July 1, 2005, any additional increase in the employer health insurance contribution, as well as any other monetary terms for July 1, 2005 through July 1, 2006 is contained in the FY 06 operating budget.
The budget is normally the last bill to pass during the legislative session. I will keep you informed on the progress of the operating budget.
4. There is no firm dollar increase in the employer health insurance contribution effective July 1, 2005 specified in our collective bargaining agreement. In accordance with our contract language any increase in the employer health insurance contribution on July 1, 2005 will be "an amount equal to the premium percentage increase necessary to maintain the Select Benefits Economy Medical/Audio/RX/Dental plan". Art Chance, Director of Labor Relations informed me this week that he expects the increase in the employer contribution effective July 1, 2005 to be $78 per month. He will give me a firm figure next week. I will notify all members when I receive the firm dollar figure from Mr. Chance.
Please feel free to contact me if you have any questions.
Jim Duncan
Business Manager
