Governor Malloy and state union leaders came to a tentative agreement Tuesday that could save the state billions of dollars in coming years.
Officials said the deal is expected to save about $1.5 billion over the next two years alone, money that can help close the state’s budget deficit.
The deal includes a three-year wage freeze and increases employee contributions for pensions and health benefits. Employees will contribute 2 percent more to their pensions. The redesign to the health insurance plan means employees will pay about 3 percent more for premiums, and more for co-pays on prescription drugs.
The deal also rescinds layoff notices issued since April, and provides job security protections through 2020.
The deal is expected to save $710 million in 2018 and gradually increase so that in the next 10 years the state will save around $10 billion.
Union leaders still need to take the deal to union members for a vote.
