FOR IMMEDIATE RELEASE

Contact: Heather B. Habelka, Office of the Mayor, 203.385.4001

Mayor James R. Miron Announces One of the Most Significant Labor Arbitration Decisions in Stratford’s History

Stratford, Connecticut (October 29, 2007) – Mayor James R. Miron, joined by members of his administration and David Dunn, the Town’s Labor Relations Consultant, outlined the highlights and major provisions of the recent Stratford Fire Pension Arbitration Award at a press conference held today at Town Hall.

“The Town will save approximately $15.2 million dollars in total gross savings as a result of this Award over the next 23 years,” said Mayor Miron. “There is an immediate and significant benefit to the taxpayers as the Town’s unfunded pension liability is reduced $2.5 million as of July 1, 2007.”

The Fire Pension Arbitration began in 1997. It was put on hold while the Town completed bargaining with its other Unions, notably the Police, Public Works, Town Hall and the Supervisors Union. All of the other Town Unions agreed to significant pension changes that took effect between 1997 and 1999.

In 1999, the Fire Pension Arbitration was renewed and prior to the arbitrator’s taking evidence on the issues presented by the Town, they first had to decide two technical challenges filed by the Fire Union. Those challenges were claims that the Town was prohibited from proposing anything that would “diminish” any benefits and secondly that pension benefits could not be changed unless the basic labor agreement was also changed. Those technical challenges were both awarded in the Town’s favor and the arbitration then proceeded on the issues detailed below. Evidence regarding these issues was presented over a period of three plus years.

The arbitration panel, which was comprised of neutral arbitrator Martin Webber, Chairman; John Romanow, Management Arbitrator; and Peter Carozza, Union Arbitrator, issued an award based on all the outstanding issues presented in the Last Best Offer arbitration. The award and its terms were effective immediately upon issuance on October 12, 2007.

There were 59 issues subject to Last Best Offer. The Town’s Last Best Offer was awarded in 43 issues, the Union was awarded three issues and the parties submitted identical Last Best Offers on 13 issues.

“One of my goals as Stratford’s first Mayor is to focus on enhancing labor relations, strengthening pro-management and taxpayers positions and removing from labor contracts provisions that do not serve the Town well,” said Mayor Miron. “This award places our Fire Department personnel into the same position as all other employees in terms of their pension programs, while saving the taxpayers $15.2 million.”

MAJOR ISSUES:

1. Disability Pension Percentage – The new Disability Pension percentage is 50% for “on the job” disability (service related). In this regard, the firefighter’s disability pensions are identical to other Town employees notably the Police. Additionally, the “off the job” disability (not service related) will be 25% to 50%, also identical to the Police.

2. Employee Contribution – Firefighters are now required to contribute 8% of their pay as their pension contribution, an increase from their current 6%. This contribution rate is identical to Police Plan A. Also, firefighters must continue to contribute to their pensions as long as they are employed. The contribution will not terminate when they have reached 30 years of service, it will continue for as long as they are employed.

3. Average Annual Compensation (AAC) – All pensions are now based upon the yearly average of the total compensation paid to the employee by the Town for the 24 months immediately prior to their retirement. This change applies to all pensions whether they are normal pension, disability pension or death benefits pensions.

4. Language Changes – The arbitrators eliminated all references to former “acts of the legislature” and substituted “agreement” in its place. These language changes clarify the fact that the firefighters are in the same plan as all other Town employees.

5. Annual Rate of Pay – This formula has been eliminated. It formerly applied only to disability pensions, and it was determined on the employee’s earnings for the last 12 months of employment.

6. Normal Pension – Normal pensions are now based upon a new formula of 2.4% x AAC x continuous service with a maximum benefit of 70%. This makes the normal fire benefit identical to the police and other Town unions.

7. Term of the Agreement, Expiration Date – The arbitrators awarded the Town’s proposal for the term of this agreement. It will expire December 31, 2007. The current statutory requirements under the Municipal Employee Relations Act (MERA) require agreements to stay in place and unchanged until they have been succeeded or superseded by a new agreement. Thus, this arbitration award will stay in place unchanged until the next new Pension Agreement is negotiated.

OTHER ISSUES:

8. Disability Definition – The arbitrators awarded the Town’s request for disability definition similar to the Social Security Disability definition. Thus, any future disability pension in the fire department must be based upon the following definition:
“Disability or disabled means that, due to an injury or sickness, the employee requires the regular care and attendance of a doctor, and that the employee must also be unable to perform each of the material duties of any gainful work or service for which he/she is reasonably qualified taking into consideration his/her training, education and experience”.

9. Disability Review Panel – All Firefighter Disability Pensions are subject to be determined by the Disability Review Panel. The Disability Review Panel is composed of three medical or occupational specialists appointed by the Town. This provision requires that the Disability Review Panel will determine if any disability benefits shall be awarded. In conjunction with the above definition, the awarding of disability benefits will be consistently applied. The Pension Board will no longer decide firefighter disability pensions.

10. Heart and Hypertension – The arbitrators removed the following sentence: “Disablement or death due to hypertension or heart disease shall be conclusively presumed to be disability or death in the line of duty”. They have agreed to the Town’s proposal of “disablement or death due to hypertension or heart disease shall be treated in accordance with current CT Statutes.”

11. Disability Earnings Offset – Any employee who receives a disability pension can have their disability pension “offset” by the Town down to 30%, due to any outside earnings. The Town will be able to review an employee’s individual income tax returns and offset any pensions to a minimum of 30%. This proposal is also identical to a provision in the Police Pension Agreement.

12. Employee’s With Less Than Five Years Service – Firefighters with less than five years service are not eligible for an off the job disability, non-service disability pension.

13. Employee’s 65 Years of Age or Older – Employees 65 years of age or older are also not eligible for any disability pension due to their age.

14. Terminated Vested Benefits – Should any employee terminate their employment after they have vested, they are eligible for a normal pension after they would have served 25 years with the Town, and reached age 55. Also the maximum pension they would be entitled to would be 60%.

15. Retiree Insurances – All future fire retirees will receive health insurances similar to the coverage in effect for active members under the same terms of the general CBA, including any and all applicable deductions or co-pays, except their shall be no prescription drug benefit or coverage. For dependent coverage, the employee is responsible for 50% of the premium. This provision is also identical to the Police Pension Agreements.

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