Labor Retirement Benefits Finalized

At its Nov. 10, 2011 meeting, the Ann Arbor city council gave final approval to revisions to the ordinances that govern the retirement and health care plans for two of its unions: the Ann Arbor Police Officers Association (AAPOA) and the American Federation of State, County and Municipal Employees (AFSCME).

The revisions to the ordinances resulted from a collective bargaining agreement with AFSCME and a binding arbitration under Act 312 with AAPOA. The changes are similar to ordinance changes already enacted for non-union city workers.

The pension contribution for AAPOA and AFSCME workers will rise from 5% on a post-tax basis to 6% on a pre-tax basis. The vesting period for new hires will increase from 5 years to 10 years. Also for new hires, the final average compensation (FAC) calculation will be increased to a five-year period. The previous FAC was based on a three-year period.

On the health care side, the AFSCME and AAPOA employees will have the same access-only retiree health plan as non-union employees have.

Initial approval of the ordinance change came at the council’s Oct. 17, 2011 meeting.

This brief was filed from the city council’s chambers on the second floor of city hall, located at 301 E. Huron. A more detailed report will follow: [link]