Summary
To: Mayor Gary H. Katica & Commissioners
From: JP Murphy, Town Manager
Date: 9/27/2019
Subject:
Title
Police “FOP” Negotiations Update & Pension Plan Changes
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Summary:
Yesterday, I tentatively agreed to terms with the Police Union covering the next three year of bargaining. A summary of the major terms are as follows:
• COLA & Merit to remain the same as the previous contract: 1.5% & 3% respectively
• An increase in shift differential from 4% & 8% for evenings and midnights to 5% & 10% respectively.
• A one year , $500 monthly stipend for spouse and dependent coverage only for eligible members
• Increase of maximum accruals for comp time from 80 hours to 120 hours. With a provision that at 9/30 it must be 80 hours or less. Officers may defer any amount to HSA contributions.
• For all new officers: A reduction in pension benefit from 3.5% to 3%, a 2% increase in required officer contributions from 6% to 8%, and a change in normal retirement from 55 years old & 5 years of service to 55 years old and 10 years of service.
In addition, the Pension Board attorney is recommending several changes, please see the attachments for an overview and potential draft ordinance of those. Rather than advertising and noticing two separate ordinances to amend the pension plan, staff would like to wait until the FOP contract is finalized and ratified to amend the Pension Plan ordinance so that we cover all of the items at once.
This item is for discussion only. Final approval of the FOP contract will come before the commission likely on the 15th of October. An ordinance amending the Pension Plan will follow after.
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