Rhode Island news
Johnston council expected to vote on cutting firefighter benefits
01:00 AM EST on Monday, November 16, 2009
JOHNSTON — The town could save at least $635,000 by rewriting firefighters’ health and pension benefits, according to Town Solicitor William J. Conley.
Conley might identify even more potential savings tonight when the Town Council meets to reconvene public hearings for proposed ordinances that would cut firefighters’ benefits –– despite stiff opposition from firefighters.
Last week, the firefighters’ union asked the Superior Court to restrain the council from slashing the benefits, arguing that state law forces town officials to negotiate benefits in contract negotiations or at arbitration proceedings.
The two hearings will continue tonight, starting at 6:30, and a vote is expected, according to the council’s president, Robert V. Russo.
The ordinance on pension benefits would move some firefighters from a local pension plan to the Municipal Employees Retirement System run by the State Retirement Board. The majority of Johnston’s firefighters already receive benefits through the state-run system.
Shifting those who remain in the local plan would lower the town’s liability by more than $2.8 million and create a savings in excess of $370,000, according to Conley’s testimony to the council on Nov. 9.
The proposed ordinance on firefighters’ health benefits would require 74 firefighters to contribute 20 percent of the cost of each family insurance plan, saving $3,156 per employee or $233,544, according to Conley’s estimates. The firefighters’ contract, which expired June 30, calls for them to pay about $780 toward the cost of their health benefits each year.
Also, changing the contribution level for 13 firefighters whose insurance does not cover any family members would save just under $32,000, Conley said. The most recent contract calls for each of the 13 firefighters to pay about $390 toward their health benefits.
The 20-percent contribution level is based on trends, Conley said, in response to a question asked by Councilman Joseph A. Wells.
“We don’t consider it to be arbitrary,” said Conley, who expects some additional savings on health benefits from several other changes, including adjustments to prescription offerings.
Joseph Andriole, president of International Association of Fire Fighters Local 1950, said the pension changes would affect 37 firefighters who already made significant pension concessions back in 1999, agreeing to contribute 8 percent of their pay toward pensions instead of the 6 percent contributed by firefighters who retired prior to 1999, including Mayor Joseph M. Polisena.
Conley pointed out that the formula for calculating the firefighters’ pensions changed dramatically in 2001 when 75 percent of their overtime, their clothing allowances and severance pay started counting toward the pension calculation.
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