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Thursday, February 2, 2006

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2006 POLICEPAY INDEX

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RETIREE’S HEALTH INSURANCE UNDER ATTACK

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2006 POLICEPAY Index Just Released!

ALLENTOWN, PA

City Gets Key Ruling In Pension Fight

NEWPORT, RI

Police Union Wants Contract Talks To Continue

NEW CASTLE, NY

New Castle Police Contract Goes To Binding Arbitration

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2006 POLICEPAY Index Just Released!

* Austin, Texas is highest paid police department out of 200 largest cities in United States

* New Orleans is still the lowest paid department

* 'Old South' is lowest paid region

* New York City police officers remain toward bottom of the list, ranked 157th out of 200

From PRN Newswire, January 31, 2006

 

OKLAHOMA CITY, Jan. 30 /PRNewswire/ -- POLICEPAY.NET has released the 2006 POLICEPAY Index, ranking the 200 largest cities in the United States based upon police compensation. This index uses a total compensation methodology that breaks down an officer's pay and benefits over a 30-year career into a per hour rate that allows each location to be accurately compared.

 

Produced by Ronald J. York, President of POLICEPAY.NET and a well-known accountant and labor negotiator, this index provides an accurate representation of police wages and benefits across the country. Over the years, our index has become widely used by government agencies and police unions for determining market values, individual police recruits looking for a department to apply to, and reporters covering stories regarding police wages and benefits.

 

The full 2006 POLICEPAY Index is available at no charge for download at http://www.policepay.net/ , or can be requested by email at editor@policepay.net , or by fax at (405) 234-2245. Custom data reports are also available for members of the media upon request to compare individual types of compensation.

 

POLICEPAY.NET is the nation's leading collective bargaining consultant for police associations. We have been serving associations all across the nation since 1987 providing collective bargaining services. In addition to services for individual police unions, we also own and maintain the Web site http://www.policepay.net/ , the leading resource for police compensation data available anywhere.

 

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City gets key ruling in pension fight
State oversight board says actuarial studies were wrong, missing. Court challenge may be helped.
From
The Morning Call, February 1, 2006

The state's public pension oversight board has ruled that Allentown's 2004 police contract violates state law, giving city officials potentially critical legal ammunition to fight the costly agreement in court.

The Public Employee Retirement Commission said the city never obtained the required accurate cost projections, known as actuarial studies, needed to determine the financial impact of the deal before executing it.

 

''It does say it is in violation of state law, which is key for us because it basically backs up what we have been saying from Day 1,'' said Mayor Ed Pawlowski.

The commission can only order the city to complete the missing or inaccurate studies, but the ruling should give the city a legal opening to challenge the contract in court, said state Sen. Pat Browne, R-Lehigh, a member of the commission's board.

More than 50 officers retired under the agreement in 2005, leaving with annual pensions of up to $86,000.

Pawlowski hired retired Lehigh County judge Maxwell Davison in January to devise a legal strategy to fight the pensions, which have saddled the already cash-strapped city with a crippling annual tab.

The city's actuary, Beyer-Barber Co. of Allentown, informed Pawlowski on Friday that annual police pension costs will more than double in 2007 to $6.9 million as a result of the contract.

The commission, which began its investigation in November at Browne's request, said the city twice failed to provide accurate actuarial studies, as required by state law.

The first time was when Mayor Roy C. Afflerbach reached a contract settlement with Queen City Lodge 10 of the Fraternal Order of Police in 2004. That deal, the pension provisions of which were later adopted by a panel of binding arbitrators, made a variety of changes to the city's police pension plan and implemented an early retirement program.

The most significant modification changed the time period used to calculate pension benefits, from a three-year average wage to the wages earned during an officer's final 30 days on the job. That makes it easier for retiring officers to work more overtime in their final days in order to boost their pensions, increasing the city's costs.

But in the fiscal projection Afflerbach provided City Council, the actuary based its estimate of the cost of the pensions on a one-year average salary.

Afflerbach said he'd prefer not to comment on the commission's ruling, but he wasn't sure why the actuary based his determination on the one-year average.

''His firm was given all of the information…I don't pretend to know how actuaries work,'' Afflerbach said.

Beyer-Barber Chief Executive Officer Randee Sekol told a special committee of City Council last year that he thought the wording of the contract referred to an average 30-day wage, and that the Afflerbach administration did nothing to correct that impression. He could not be reached Tuesday for comment.

Despite having incorrect financial information that downplayed the fiscal impact of the pension enhancements, City Council voted to challenge the arbitrators's contract award, stopping its implementation.

The second time the city erred, the commission said, was in July 2005. That's when Afflerbach negotiated a deal with the police union that allowed officers who took early retirement in August to choose the most lucrative 30-day period of their employment that year to calculate their pensions.

That deal, put down in writing in a memorandum of understanding, was aimed at settling City Council's lawsuit. By a slim margin, council voted to drop the lawsuit and the union agreed to drop its demand for a minimum staff level.

But no actuarial study was performed to assess the effect of the change to the early retirement program. If it had, Browne suggested, City Council might not have agreed to the deal.

''What would have been the result if this was in place, if the process was followed?'' Browne said. ''It could be argued that if they had the requisite fiscal information, the decisionmakers would have made a different decision. It is highly probable.''

At least one member of council who voted to drop the lawsuit and adopt the contract said Tuesday he wouldn't have voted for it.

''No, no way,'' said Councilman David Bausch. ''We found out the actuarial studies weren't done correctly, but it was after the fact.''

One vote is all it would have taken to defeat the settlement and the pension enhancements included in the memorandum. It passed council 4-3. Councilmen David M. Howells Sr., Julio Guridy and Louis I. Hershman also voted for the settlement.

The report also said the actuary advised city officials that up to 60 officers could retire under the early retirement window included in the contract, but that the city assured the actuary only 12 would take advantage.

Mike Rooney, president of the police union, could not be reached Tuesday afternoon.

 

 

Police union wants contract talks to continue

The process has been in binding arbitration for almost two years. Prospective retirees are concerned about a proposal by the city that would require retirees to pay part of their health-insurance premiums.

From The Providence Journal, February 1, 2006

 

NEWPORT -- Police officers and retirees who met until late last night want to see ongoing talks with the city continue in hope of ending a protracted contract dispute, according to the union president. But some of the city's proposals are of such concern to the members that they aren't ready to abandon the binding arbitration process that has been under way for nearly two years.

 

About 40 members of Newport's Fraternal Order of Police, Lodge 8 -- which has about 85 active members -- met at the Elks Lodge behind closed doors for more than two hours last night to listen to union officials describe the status of talks with the city. Negotiations were revived in December after the hiring of Edward F. Lavallee, a former civilian police administrator, as city manager, according to Detective Christopher Hayes, the union president.

 

"The general consensus is that we are going to come back to the city with a couple of more ideas and continue the dialogue," Hayes said.

 

"Nobody wanted to abandon the process and just stick with arbitration."

 

However, said Hayes, many of the prospective retirees remained quite concerned about proposals that future retirees be required to pay a share of their health insurance premiums. The members, he said, are more accepting of contributing -- for the first time -- to the cost of their health insurance while they are employed, but not when they are retired and on fixed incomes.

 

That's one reason, he said, that members were reluctant to cancel or postpone an arbitration session to be held Feb. 9. It will be the second hearing on resolving salary and benefits for fiscal 2005, which ended last June.

 

"If they can't resolve anything before the next arbitration meeting we will continue with arbitration," said Hayes. "We are keeping the door open for negotiations."

 

Hayes said that retiree premium sharing appears to be "a priority" of the City Council, which is facing a hefty unfunded liability for retiree heath coverage. But, said Hayes, the issue remains "a concern for us."

 

The union has been working without a contract since July 1, 2002.

 

The city has been demanding that the union share the cost of health insurance, while the union has offered its own premium-sharing ideas and sought wages more in line with comparable departments. Some nonunion city employees contribute toward the cost of health coverage and teachers became the first union in the city to accept premium-sharing. But the teachers only agreed to the proposal for the school year that began in September.

 

Binding arbitration for the police began more than two years earlier, in mid-2003. It ended with a decision that awarded the union a 5 percent retroactive pay hike and no premium sharing. The city, meanwhile, won increased copays on visits to doctor's offices and emergency rooms and the establishment of a cap on accrued prescription drug expenses for each member.

 

Arbitration on fiscal 2004 ended last September, with the police winning a 4 percent retroactive pay hike and continued free health coverage.

 

 

New Castle police contract goes to binding arbitration

From THE JOURNAL NEWS, February 2, 2006

NEW CASTLE — After more than a year of negotiations and a failed effort at mediation, the town police contract appears headed for binding arbitration.

 

The contract for the 42 members of the department expired at the beginning of 2005, but the Police Benevolent Association and the town have been unable to agree on raises and contributions to medical benefits.

 

Police officers and their family members came to a recent Town Board meeting to protest the lack of progress.

 

"The offer that has been extended to us is well below what neighboring and surrounding communities have seen fit to pay their officers," PBA President Steven Heady said in an interview.

 

Department members currently don't contribute to the cost of their health coverage, and the town wants them to pick up some of that expense. Town Administrator Gennaro Faiella said health costs have gone up 10 percent or more in recent years and this year increased 4 percent.

 

"I think the health care is the sticking point," Faiella said.

 

Spiraling health-care costs have contributed to contract disputes with public employees around the region, from the Transport Workers Union that went on strike in New York City in December to the sheriff's deputies' union in Putnam County.

 

Officer Chad Golanec said the contract problems are disheartening because the union members feel they are asking for the going rate and the town has the ability to pay. Only a handful of department members own homes in Westchester because others can't afford it, he said.

 

"We've got guys who drive two hours," Golanec said.

 

Annual department salaries vary, according to the 2006 budget, from $123,367 for the chief to $92,645 for lieutenants to $79,302 for detectives. Police officer salaries range from $51,744 to $74,116.

 

Union members said they also feel they are treated unfairly. For instance, officers found they were not eligible for a monthly $40 subsidy for a gym membership that was offered to town employees. They said they feel their concerns about the cramped police station have gone unheeded. The police station is in the bottom floor of Town Hall at 200 S. Greeley Ave.

 

"The police are obviously a very low priority," Heady said.

 

Faiella, however, said the town has been working on improving the building for more than two years and will soon request proposals to investigate expanding the current building or building a new headquarters nearby.

 

All members of the department, including the chief, are part of the union. The first arbitration session is tentatively set for March.

 

 

 

 

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