Hartford -- Gov. Dannel P. Malloy today submitted legislation as part of his budget rebalancing plan that would cap state worker longevity payments, place limits on accruing sick days and eventually exclude overtime from being calculated into workers' pensions.

The proposals are part of Malloy's Plan B to fill a $1.6 billion hole in the state's next two-year budget after state union workers voted down a labor savings and concessions agreement last week.

The changes in sick day accrual (no more than 10 days a year) and longevity payments (it freezes current levels and ends the practice for those not currently receiving them) would take effect once contracts for each of the 15 state unions expire. Most contracts expire June 30, 2012.

The provisions concerns pension calculations would happen in 2017, when the state's health care and pension contract with the State Employees Bargaining Agent Coalition is set to expire.

"These are relatively modest proposals given what's going on in other states," said Roy Occhiogrosso, the governor's senior adviser. "They don't undermine the fundamental principles of collective bargaining."

The legislation also would reduce the state's new earned income tax credit, set to take effect Friday, from 30 percent of the federal level to 25 percent of the federal level. This reduction would save $18 million a year, according to Benjamin Barnes, the governor's budget chief.