OPM undersecretary outlines tentative SEBAC 26 state employee deal; lawmakers press on costs

Under Secretary David Kryki of the Office of Policy and Management told the Appropriations Committee that a tentative agreement between the state and the state employees’ bargaining agent coalition would establish a wage pattern for 32 bargaining units and include a 2.5% general wage increase plus a step or equivalent for fiscal years 2026–28.

Kryki said the first year increase would be effective and retroactive to July 1, 2025, and apply to employees on the payroll at the time of legislative ratification and to employees who transitioned directly from active employment into retirement after that date. “The SEBAC 26 agreement establishes a wage pattern framework for each of the 32 collective bargaining agreements that includes a 2 and a half% general wage increase and a step or its equivalent for fiscal years 26, 27, and 28,” Kryki told the committee.

He described several health‑care provisions that negotiators say will reduce costs while preserving benefits: an incentive for employees to waive employer coverage when they have viable alternative coverage, expanded Medicare‑wrap options for retirees who prefer a traditional Medicare wrap rather than a Medicare Advantage plan, digitized health‑enhancement payments, fertility‑services information, and deeper partnerships with local providers (listed in…