In an effort to curtail the city’s growing budget problems,
Hollister’s mayor wants police officers and firefighters to
renegotiate retirement benefits in their union contract
– a contract that can only be revisited if the unions decide to
do so.
In an effort to curtail the city’s growing budget problems, Hollister’s mayor wants police officers and firefighters to renegotiate retirement benefits in their union contract – a contract that can only be revisited if the unions decide to do so.
“I would definitely love to see them re-evaluate that, but I can’t reopen it because it’s something only the union can choose to do,” said Mayor Tony Bruscia. “When we’re looking at a $16 million deficit over the next four or five years, to have benefit increases is crazy. They’re talking about having to cut services to the community – to me that’s the first place we should be cutting.”
Currently, Hollister police officers receive a retirement compensation as a percentage of their salary based on their years of service multiplied by two. The plan is known as 2 at 50.
For example, if an officer has 20 years of service when they retire, those years would be multiplied by 2 percent, giving them 40 percent of their pay as final compensation, according to the Public Employment Retirement System (PERS) Web site.
Four years ago, the Hollister Police Officer’s Association (POA) union negotiated with the city to increase its benefit package from 2 to 3 percent at age 50, said Sgt. Ray Wood, POA president. The new deal would take effect July 1, 2005.
The 1 percent increase would cost the city approximately $1 million more out of its general fund over the next couple years, Bruscia said. The amount is based on information given to the city by PERS and it could fluctuate and change, he said.
About half of that figure will be expensed when the police department’s increase is instated in 2005 and the other half in 2006, when the Hollister Fire Department’s retirement package also increases from 2 to 3 percent at 50, Bruscia said.
Police officers will not renegotiate their benefit package with the city, Wood said.
“We would not have signed if we did not get the 3 at 50,” Wood said. “Now they’re trying to take away our benefits. We’re gonna lose people. … If it comes down to dollars and cents, a guy’s going to leave.”
Consistent with the police department’s sentiments, the fire department would lose good firefighters with a decreased retirement package, said firefighter Bob Martin Del Campo, president of the local International Association of Firefighters union.
“The City Council agreed and it’s something our guys are not able to give as a concession,” he said. “However, we are willing to listen and be part of the solution to make the economy better in the city.”
One alternative could be implementing a 3 at 55 retirement package. It is an idea that has been talked about within the fire department, but right now it is irrelevant because the contract’s start day is two years away, Martin Del Campo said.
“I’ve heard that other departments are considering this alternative as a means of defraying the cost of benefits,” Martin Del Campo said. But it’s kind of putting the cart in front of the horse talking about it (now). … Maybe down the road.”
The police department is not interested in renegotiating to an alternative plan such as 3 percent at 55 because most police officers retire before they reach that age, Wood said.
The police department currently has two officers past the age of 50, and one of them is on the long-term injured list, Wood said.
“At 55 they start breaking down, and you shouldn’t be on patrol,” he said. “Not very often do you get a police officer to go into his 50s without being injured consistently.”
A majority of departments offer 3 at 50 retirement packages, according to the PERS Web site. To keep Hollister at 2 percent would make recruiting and retaining officers difficult, Wood said.
“The city needs to prioritize what they need to do – they need to take care of the employees that are here,” he said. “If they don’t … and we start back-filling with one and two year cops, now we’re talking about quality and quantity of work again.”
Morgan Hill police officers have had the 3 percent at 50 package for about two years, along with the vast majority of surrounding departments, according to Sgt. Rick Rodriguez, the Morgan Hill POA treasurer.
Keeping Hollister’s retirement package at 2 percent isn’t the “right move,” even with the city’s budget problems, he said.
“If I was starting out … I wouldn’t even bother applying at Hollister,” Rodriguez said. “On the other side of the coin, if I’m a reject and I can’t get in anyplace else, I’ll go there. If that’s what they want for the police department, then go ahead and support the 2 at 50.”
Because the entire state is suffering financial problems, Bruscia believes a lower retirement package shouldn’t hinder Hollister departments from recruiting good personnel.
“They still have a very good retirement plan. There are a lot of Americans that don’t have any retirement plan at all,” Bruscia said. “It’s all in perspective. If it was my retirement plan would I want to give it up? No, and I don’t blame them, but if we weren’t in this financially difficult situation I wouldn’t ask them to.”
