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Staff shows Connecticut gives relatively strong benefits to low‑income workers but cap flattens benefits for higher earners
Summary
A staff comparison showed Connecticut's benefit formula is generous for lower-income workers but hits a flat maximum ($981/week, tied to 60× state minimum wage) that limits benefits for middle and higher earners; board discussed committee follow-up and statutory constraints.
Staff presented a cross‑state comparison of benefit formulas at multiple earnings levels to help the board assess whether Connecticut's benefit structure is delivering the intended replacement for workers.
Molly said the analysis uses several example earnings levels to translate different states' formulas into dollar benefits. Connecticut's benefit is relatively generous at lower earnings levels; however Connecticut's maximum weekly benefit is $981 (calculated as 60 times the state minimum wage), which causes benefits to plateau for workers earning roughly $65,000 a year or more. For those workers, the benefit does not increase with earnings, which reduces replacement percentage as wages rise.
Molly noted the program's median Connecticut wage (2024 BLS) is roughly $58,000, and that Connecticut's structure helps lower-wage workers but may underserve middle-to-upper earners. Board members recommended further analysis and discussed where responsibility for potential policy changes would sit; Erin and others emphasized that raising the maximum would require statute change and likely need actuarial scenario work. Ava proposed that an appropriate committee (such as Outreach or Policy & Personnel) examine options and return recommendations.
The board did not vote on benefit design changes but agreed to continue discussion, request additional earnings‑by‑utilization analyses tied to DOL data, and have actuary scenarios prepared for future meetings.
