09-05-12 Personnel & Finance - Laserfiche WebLink

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Personnel and Finance Committee Meeting September 5, 2012 Page 4 Police has two (2) pension plans the old plan which is the 1925 Pension Plan and covers retired police officers, widows /widowers and dependents from 1925 until March 31, 1977; and the new plan which covers retired police officers, widows /widowers and dependents from April 1, 1977. The new plan is paid entirely by the State of Indiana. There was a conversion period which paid $10,000 per officers to convert. 105 or 240 officers converted. In response to an inquiry from Council Member Schey, Mr. Pinckert noted that under the old plan monies are reimbursed by the state, %2 in June and %2 in October following the monies being fronted by the City. Under the old plan, there are: 157 police retirees 81 widows and dependents 238 total Under the DROP program, an officer is required to give 12 to 36 month notice. 32 years is the maximum. There are no officers who signed up for DROP effective 2013; in 2014 three (3) officers have given notice. Next year's budget reflects a decrease of about $90,000 from this year as a result of eighteen (18) retired officers passing away. Pension benefits for each widow is about $7,000 less on the base pension amount then what they were receiving when their retired police husband was alive. Pension amounts are based on one -half (1/2) of the first class patrol officer's salary, with a maximum of 74% possible based on each additional six (6) months of service. Based on these figures, knowing that police labor negotiations are ongoing, an increase of up to three percent (3 %) on the base would not increase the budget. Mr. Pinckert emphasized that the pension plans are all based on laws passed by the Indiana General Assembly. He added that police officers and firefighters do not pay social security, and unless they reach the required defined years by other employment, they do not qualify for these benefits. Council Member White thanked everyone for the information about the proposed police budgets, noting that additional questions will require a 2nd meeting time with this department to be set. South Bend Fire Department Proposed 2013 Budget $20,334,056 Proposed Expenditures -2.7% Variance 2012 -2013 Fund No. 101 -0901 pp. 835 -846 Fire Department Fund No. 101 -0905 pp. 847 -851 Fire LOIT Fire Chief Steve Cox made the formal presentation utilizing 8- screen power -point (copy attached) which summarized the South Bend Fire Departments' Mission Statement, 2012 Accomplishments, 2013 Key Initiatives, Key Performance Indicators, and Food for thought