A shift in how police and fire pensions will be calculated has been chronicled by taxpaying financial watchdogs John Marshall Lee and Andy Fardy, a retired city firefighter. This is not a glaring issue until taxpayers get hit with the bill. A city police officer who describes himself only as Officer John Jones provides that his pension stands to double with overtime included in the pension calculation. He writes:
The way I look at it, I need to look out for myself, right? How pensions get funded in the future is a problem for taxpayers and their representatives to work out. I figure that Connecticut may be in a better position to honor the obligation to me than Bridgeport will. I may even be living in another state with a lower cost of living.
Commentary:
My name is unimportant to you as I tell this story. You can call me Officer John Jones. I am 51 years old and have served 24 years as a patrolman in Bridgeport though I moved to another town when the kids came along to get them a better educational opportunity. And property taxes are crazy for residents in Bridgeport anyhow. I am looking to retire from the force in a couple years and pursue another business activity. You can be sure that I have been paying attention to contract changes for Police, especially the changes relative to retirement.
The contract that covered police who retired under Pension A as well as Pension B (those who have retired already), allowed them a 50% of annual base compensation at 25 years of service. So if my annual Patrolman base pay were $62,000 annually, my pension would be $31,000 annually. When I died my surviving widow would receive $15,500 annually. That monthly amount would be paid as long as I lived or my surviving spouse did, but the plan had no cost of living allowance. The only change that could occur would be when current active police received a base pay raise. This would trigger an amount increase for retirees in Pension A and B. They called it an escalator clause.
The Public Safety employee contracts were due to end in mid 2012. Planning and negotiations were ongoing for some time before that date between the City and the Union representing us. A significant change presented itself when an opportunity for active Police (and Fire, too) personnel to vote to transfer from Pension Plan B with the City of Bridgeport to Connecticut Municipal Employee Retirement System (CMERS). Contributions would continue from police employees as well as City contributions but instead of going to Plan B Police, the funds would go to CMERS. The attractive element from my point of view was a change in how the retirement benefits would be calculated. The CMERS plan considered my highest three years of compensation earned as a Patrol officer as a basis for applying the 50% monthly income after 25 years. Internal department overtime and external department overtime was included in my retirement calculation on top of basic compensation.
What a difference that can make! For instance my total earnings in FY 2012 were $112,000. This year it looks like I will earn $120,000 as I have kept myself eligible for lots of overtime. If I am able to do this for one more year and were to earn $128,000 total next year, and then retire, my income as a retiree would jump from about $31,000 annually had I continued with Plan B Bridgeport to $60,000 annually under CMERS. See what I mean? I understand that some people have noticed that the City overtime assumptions have been exceeded by significant amounts in the past two years. What did those folks expect? You have to take care of your family and your future. No one looks out for you especially after you retire in these government pension plans. The Trustees don’t care and the politicians keep deferring adequate funding action. The way I look at it, I need to look out for myself, right? How pensions get funded in the future is a problem for taxpayers and their representatives to work out. I figure that Connecticut may be in a better position to honor the obligation to me than Bridgeport will. I may even be living in another state with a lower cost of living. Officer J.J.
Except this guy is putting his life on the line for a $60,000 pension. Maybe JML and Walker who no doubt will be blustering their outrage, maybe next time they need a cop they should have Rick Torres come over with coffee instead.
Though I am not defending his flip comment.
Actually BRG, Officer JJ was satisfied with the pension having no reference to overtime for over 23 years of his career. It was only during the past two years another alternative became available. Was it attractive to active Police Department members? Guess so. Did you read about this on OIB when the Fire Department concluded negotiations last year or the Police Department went to some form of agreement resolution? Does this type of change require CC approval? Taxpayer understanding after becoming informed? Time will tell.
Servicemen and women placed their lives on the line every day. None expect to retire with a pension of more than 100% of their base salary especially after 25 years. Unions stink.
It’s in the best interest of a union to get the best agreement it can for its membership. Keep in mind someone from the municipal/management side agreed with the negotiation, hence it’s a contract. Blame must first be placed on incompetent managers for agreeing to such a financially backbreaking pension agreement.
Both sides of the negotiating table in Bridgeport have hurt this town innumerable times. None of the participants were qualified to understand the long-term ramifications of of the “deals” they were making. Actually, none of them gave a damn. Unions stink.
BRG. When you apply and get a job you know what that job requires, it could entail danger and if you don’t like that don’t apply. Did you know offshore fishing is a far more dangerous job and when was the last time you called a fisherman a “hero!!!”
How is your “job” in the sun, sunburns are real dangerous.
The real dumbasses here are the administration, the city’s negotiator and the council. These dumbasses just gave away the city. Someone please explain how performing outside overtime paid for by the contractor equates to pension benefits? We are going to see officers retiring at more than 100% of their salaries.
The only way to put a stop to this is by changing the ordinance that requires cops at all construction sites. This was a bone thrown to the police union about 40 years ago. The thinking by the city was it’s going to cost us nothing to pass this ordinance so why not.
We will hear it’s a safety issue; that’s just BS. Many communities use flagmen from the construction company to move traffic and nothing happens. It’s time to repeal this ordinance.
They don’t count OT in cop or fire pension calculations in Stamford. That’s the answer.
yahooy,
OT for police is not part of the pension formula in Fairfield either. Which member of the Finch administration is going to indicate it was his/her idea? Which one will show us how this is a good deal for Bridgeport taxpayers in terms of service and expense? Where are the actuarial numbers prepared by City actuary, Fire Department Trustees actuaries and State of CT actuaries to see how OT eligibility will affect future CMERS pensions? Will that come back to haunt Bridgeport in any way? And how is the OT limitation assignment of the fifth Police Department Asst Chief working out? Time will tell.
How much actuarial analysis do you think took place by either side in reaching labor agreements? None!!! There is not nor has there ever have been a truly skilled and knowledgeable contract negotiator in this town. We need an independent third party to examine the economic impact of proposed labor contracts BEFORE they are put into the budget. What’s wrong with an independent opinion demonstrating how much additional taxes must be paid by homeowners to satisfy the horrendously ill-conceived “deals?”
Just one of many examples of incompetence on behalf of the elected officials and senior management officials in Bridgeport. It’s time for a state-appointed Financial Control Board. This Administration and City Council just aren’t up to doing what needs to be done to create a better future in the City. Tom McCarthy deserves double black eyes. He’s President of the City Council and Deputy Director of Labor Relations. With negotiation results like these one would be fired in the real world.
Mr. Walker. This is Bridgeport. Not even close to the real world.