Council decisions impact pensions

To the editor:

Reference The Commercial Review’s April 17 story headlined “Council passes salary changes” by Rose Skelly:

“The ordinance also allocated one-time payments for full-time employees in lieu of percentage salary increases.”

“Each full-time employee will receive $1,265, which will be disbursed July 1.”

“The new ordinance should help make the city more competitive and help attract talented employees,” Portland Mayor Randy Geesaman said.

The City of Portland does not realize police officers and firefighters are not the same as employees of the other departments. Police officers and firefighters are governed by Indiana Code.

Salary of a first class patrolman or first class firefighter with or without longevity increases:

(a) “Salary of a first class patrolman or first class firefighter” means the base salary of a patrolman or firefighter plus all longevity increases, if provided by the employer, for service of twenty years or less but does not include remuneration or allowances for fringe benefits, incentive pay, holiday pay, insurance, clothing, automobiles, firearms, education, overtime, or compensatory time off. (b) With respect to the 1925, 1937, and 1953 funds, “salary of a first class patrolman or firefighter” may include longevity increases for more then twenty years of service at the option of the employer but only if these longevity increases had taken effect before January 1, 1983.

“Salary of a first class patrolman or first class firefighter sets the stage for pension benefits, long or short term disability benefits, Deferred Retirement Option Plan benefits as outlined in the Indiana Code for all the funds above plus “1977 fund Police Officers’ and Firefighters’ pension and disability fund.”

If the City of Portland would have applied the $1,265 to the base pay of a first class police officer and first class firefighter it would have benefited the retirees and widows of the 1925 fund and 1937 fund — these retirees and widows have not experienced an increase in benefits for the past two years — along with the police officers and firefighters who are working at the present, increasing their 1977 fund benefits. Putting money on everything but the base salary takes away from police officers and firefighters who are working now in their retirement benefits, DROP benefits, along with short-term or long-term disability benefit payments.

Retirement benefits are computed on the salary of a first class patrolman or first class firefighter base pay which the clerk-treasurer has to certify annually. Employees of other departments of the city have their disabilities paid through Workman’s Compensation. Retirement payments are paid at a rate of 3 percent per dollar amount of pay. I have not figured out why the city has not applied the $1,265 to the police and fire first class base salary as the city has help from “pension relief fund” that was established in 1977, to help cities and towns with the financial burdens associated with the police and fire retirement systems.

Mayor Geesaman: “The new ordinance should help make the city more competitive and help attract talented employees.”

I have to disagree with the mayor. Using the figures supplied by INPRS and “aim” (Accelerate Indiana Municipalities) — 153 cities and towns that take part in INPRS — Portland Police Department base salary ranks 142 out of 153. The cities of Bluffton, Decatur, Berne, Gas City, Hartford City and Montpelier all have a higher base salary than Portland. The cities of Union City, Winchester and Dunkirk have a lower base salary for first class police officers.

Information I have at hand using the “aim” information: population for the City of Portland at 6,223. Of the 18 cities within 1,000 of that number, Portland ranked last for such pay. The City of Nappanee base salary $54,211.20, with a population of 6,648. Portland’s base salary is $39,030.36, with a population of 6,223.

I do not understand how the City of Portland can become more competitive and help attract police officers and firefighters when the city does not offer competitive salaries.

I would be happy to sit down with anyone and go over my information.

Robert E. Moore

President, J & B Lodge 102

Fraternal Order of Police