A revised contract that would provide health care benefits to retired Scranton police officers could be a future budget buster that would cripple the city financially for decades to come, a Times-Tribune analysis shows. <\/p>\n
Mayor Bill Courtrights administration has touted the deal as a significant breakthrough that will save the city up to $4.5 million over the life of the contract. Those savings dont account for the possibility the city could be obligated to pay costly health care benefits for decades to come, however. <\/p>\n
The debate centers on how many people will qualify for the benefits. The citys analysis is based on six people being eligible for the benefits, but that assumes the city will be able to remove the perk after the contract expires in 2021. If the city cannot, it would be obligated to pay the benefits to 99 current employees in the ensuing decades, the newspapers review found. <\/p>\n
The mindset is the union will give it back. Thats just not the way it works, said Councilman Wayne Evans, one of three council members who voted Thursday to table a vote on the memorandum of understanding that would alter the current contract. Its very hard to get any kind of concession. Thats a very, very attractive benefit. ... Once its in there, thats a budget buster and something the city could not sustain. <\/p>\n
The health care provision is among several enhanced benefits the city offered in exchange for concessions from police that Police Chief Carl Graziano estimated could save $4.5 million. The citys labor attorney, Edwin Abrahamsen, previously estimated the savings at $750,000 to $1 million a year. That analysis did not include all costs and revenue, however. <\/p>\n
Mr. Grazianos savings include $1.3 million from eliminating a minimum manning clause, roughly $846,000 from other staffing changes and $2.5 million in increased revenue from parking violations that will result from having two civilians dedicated to writing tickets. <\/p>\n
The analysis, which was provided to council on Thursday, did not include a deduction for the cost of the health care benefits. Mr. Abrahamsen on Friday said he estimated that cost would be $445,000 over a 10-year-period, which would start in 2020 and 2021 the first year anyone would qualify for the benefit. <\/p>\n
That calculation is based on the assumption only two of the six officers who are eligible will actually retire, he said. Even if all six retire, the cost would be $1.3 million over 10 years. <\/p>\n
Mr. Evans and councilmen Joe Wechsler,Bill Gaughan and Bob McGoff said that cost, if accurate, might be manageable. The question, they said, is whether the city can afford to gamble that it will be able to halt the health care benefits in the future. <\/p>\n
The contract would provide the benefits to officers who were hired after Jan. 1, 1994 and retire with 25 years of service. The benefit would extend to those employees spouses. The city requires officers be age 55 with 25 years before they can receive their pension. The age requirement was removed for the health care benefits, however, which means an officer could retire before age 55. He or she would not receive their monthly pension until 55, but the city would be obligated to immediately pay their health care until they reach Medicare age, currently 65. <\/p>\n
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Health care benefits in police contract could be budget buster<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" A revised contract that would provide health care benefits to retired Scranton police officers could be a future budget buster that would cripple the city financially for decades to come, a Times-Tribune analysis shows. Mayor Bill Courtrights administration has touted the deal as a significant breakthrough that will save the city up to $4.5 million over the life of the contract. Those savings dont account for the possibility the city could be obligated to pay costly health care benefits for decades to come, however Continue reading