Initial OK for Fire, Police Retirement/Health

At its April 2, 2012 meeting, the Ann Arbor city council gave initial approval to changes to the employee retirement system to accommodate recent changes to the collective bargaining agreement with its police command officers union and firefighters union. The council also gave initial approval to changes to the retirement health care benefits to reflect changes to those collectively bargained agreements.

Changes to the retirement system include: (1) increasing the pension contribution of command officer members to 6% from 5%; (2) implementing a pick-up feature as permitted by the Internal Revenue Code for the pension contributions of firefighters and command officers, converting their 6% pre-tax contribution to a 6% post-tax contribution; (3) increasing the vesting and final average compensation requirements for firefighters hired after July 1, 2012; and (4) implementing a federal provision that allows eligible retired public safety officers to pay qualified health insurance premiums directly from their pensions.

The change to the retiree health care system will stipulate that new hires after July 1, 2012 will be eligible for an access-only health care plan at the time of their retirement, instead of a city-paid retiree health care plan.

As changes to the city’s ordinances, the resolutions passed by the council on April 2 will require a second and final approval after a public hearing at a subsequent 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]