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City Reaches Contract Agreements with Police, Fire and AFSCME Unions

City Reaches Contract Agreements with Police, Fire and AFSCME Unions

1-year contracts expected to be ratified by the City Council June 4

Annapolis, MD (06-01-12) - Mayor Joshua J. Cohen announces that the City administration has reached an agreement with all four City employee unions.  The one-year contracts with the unions representing the City’s police officers, firefighters, clerical and technical employees, and the trades, maintenance and labor force employees must be ratified by the City Council in order to take effect.

“These agreements achieve our goal of strengthening the City’s financial position and reducing our unfunded long-term liabilities,” Mayor Cohen said.  “The police and fire agreements increase both the City’s and the employees’ contributions to the pension fund, and just as importantly, increase the retirement threshold from 20 years to 25 years of service for all new hires.  In terms of our retiree medical obligation, all four agreements reduce the City’s long-term liability by changing the calculation of how benefits are accrued.

“I thank all four bargaining units for being real partners with the City and enabling us to remain competitive while also doing what’s needed to be fiscally responsible.”

Under the agreements, Police and Fire employees will increase their contributions to their pension fund to 5.5 percent this year and 6.5% in FY14, with the City increasing its pension contribution from 4% to 8.5% in FY13. This is an increased budget cost of $834,000 for a total cost of $1.575 million.

Police and Fire also agreed that all new hires will be required to pay 8% into the pension. All new hires will also be required to have 25 years of service to retire.

All four Unions, including the City firefighters, represented by the International Association of Firefighters Local 1926, Police officers represented by United Food and Commercial Workers Local 400, AFSCME Clerical and Technical Employees Local 3162 and Trades, Maintenance and Labor Force Employees Local 3406 will see the elimination of furlough days. They also agreed to keep health care split at 80/20 with no increase in health premiums.  

All four unions agreed to no cost-of-living increase for FY 2013, which begins July 1 and agreed to increase their portion of co-pays for prescription drugs and office visits saving the City $175,000.

The City Council is expected to ratify the contracts on Monday, June 4.

Meanwhile, a special taskforce, made up of Union and City representatives along with members of City Council will exam funding and plan design changes to the police and fire pension plan to address further long term liabilities.