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Lieutenants Sign Off on Contract With 8% Hikes
Max Pay to Top $100G The agreement will run from Sept. 1 through Oct. 31, 2009. At the end of the contract, Lieutenants' basic maximum salary, reached after three years in the rank, will be $100,779, up from the prior $93,177. With longevity, holiday pay, night-shift differential, and other benefits, the total salary will exceed $109,500, according to city officials. Under the new contract, all 1,600 Lieutenants will receive 4-percent hikes effective Sept. 1 this year and on Sept. 1, 2008. The contract is a slightly longer version of the 24-month pact negotiated by the Uniformed Firefighters Association in March. The LBA used a two-month extension at the end of the deal to help fund added longevity increases, annuity boosts, welfare-fund raises, and extra city contributions to the union's retirement savings enhancement plan. The previously negotiated contract did not reduce starting pay for newly promoted Lieutenants, as practically all the other uniformed union pacts did during that round of bargaining. But the raises in that deal were partly financed by requiring newly promoted Lieutenants to work 13 additional tours each year for their first seven years on the job. Also, all Lieutenants were required to work an additional 10 minutes each tour, meaning 8 hours and 45 minutes. The new agreement restores two of the lost chart days for new promotees. Effective Oct. 1, 2008, those Lieutenants will receive one chart day when they reach their third anniversary on the job and another chart day will be restored when they hit their fourth year. Effective that same day, there will also be a $1,000 increase for each of the steps in the longevity schedule. At the end of the contract, there will be an additional $500 longevity boost on the steps, city officials said. The LBA's 26-month agreement does not include the added two years of 4-percent raises that several of the city's other uniformed unions have already agreed upon. Time to Explore Options "We can always go back in and lock in the next two years," LBA President Anthony Garvey said after the deal was announced on Aug. 7. "But it was my suggestion to the negotiating committee that we wait to see what happens with District Council 37's contract that will be negotiated later this year." Other benefits in the new agreement include a $100-per-member increase in the city's annual contribution to the welfare fund on a recurring annual basis for active members and retirees effective Oct. 31, 2009. On that date, there will also be a one-time $1,000 lump-sum payment made to the annuity fund. Lieutenants must be on the payroll as of Oct. 31, 2009 to receive that contribution, according to the LBA. In addition, effective at the end of the contract there will be a $3,000 one-time lump-sum payment into the Savings Incentive Plan for each active member who invests at least 1 percent of his or her salary per year in the 457 plan. Beneficial Effect A major advantage of the 457 plan as opposed to the pre-existing 401(a) plan is that there is no early withdrawal fee for officers under 59-1/2 years old. In addition, unlike a longevity bonus, the money is tax-deferred until employees begin to receive the benefit at retirement. Investment earnings on the accumulations in the annuity account are also tax-deferred. The agreement also doubles the number of budgeted positions for Lieutenants detailed or assigned to Special Assignment or Commanders of Detective Squads from approximately 5 percent - or 86 Lieutenants - to 10 percent of the membership. Based on the deal, the top pay for those Lieutenants, including longevity raises, will be $119,606. The contract placed the LBA five years ahead of the Patrolmen's Benevolent Association, whose members are working under a deal that expired Aug. 1, 2004. The PBA is in the early stages of an arbitration process that could drag on through next spring. | |||||
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