TCFT Approves PERF Recommendation
After almost an hour’s worth of discussion, the Turkey Creek Fire Territory Executive Board voted unanimously to approve giving firefighters a public employee retirement fund. The discussion was held during the board’s regular monthly meeting.
Board member Bill Dixon led the discussion explaining to the board that the fire chief and the firefighters union researched PERF extensively and came up with some key answers to questions the board had last month.
The state provided information where in a 77 PERF which is designed specifically for firefighters and police officers, neither the employer or employee pays social security.
“Their thinking is the PERF plan will replace all that type of thing,” Dixon said. “With that it becomes viable to go to a 77 PERF.”
Fire Chief Mickey Scott and the union recommended going into a civilian PERF for a year and then moving younger firefighters into the 77 PERF.
With the 77 PERF, the township will pay 19.7 percent. “But when you pay that 19.7 percent there are a number of things you don’t pay and to get us to break even, the union is willing to engage in wage concessions,” Dixon told the board.
He explained while the township will be paying 19.7 percent for 77 PERF, it won’t be paying into the current retirement plan which provides a 4 percent match to firefighter’s contributions, nor will it pay 6 percent Social Security tax. To help, the union offered to give up 3 percent raises for two years or give up 2 percent raises and longevity to provide a buffer that’s perpetual.
Dixon explained the first year the PERF is in place there will be a 13.2 percent savings and in the second year a 16.2 percent savings. The expense will be 6.5 percent in the first year and 3.2 percent in the second year and after that. Currently it’s at 4 percent. “In the long run 77 PERF costs less than what we have by half a percent,” Dixon said.
Board member Brian Woody disputed the number noting what was being proposed would be a $41,519 increase in budget rather than the reported $36,536 increase. He also asked if the township trustee received notice of how much the township would be affected by the circuit breaker.
Kim Cates, board president, said the increase was already calculated into the budget and asked if keeping good employees wasn’t wroth $36,500.
“I didn’t say that,” Woody stated. “What I said is we’ve already hit the circuit breaker … We can budget all we want for it, but if we’re at 1 percent that’s all we get.”
Scott said he didn’t think there would be a problem due to the cut in the equipment replacement budget. “This is a great idea. My wife is in a PERF, but where do we give?” Woody asked.
Scott noted the 2013 budget was a 4.4 percent increase. He expects the 2014 budget to be 3.7 percent. He reminded the board the job is risky and unpredictable. To go into a 77 PERF an applicant must meet physical and psychological requirements. He pointed out all neighboring fire departments offer employees PERF.
Woody said he liked the idea, “But we don’t know what the circuit breaker is going to do to the territory. What do we do? What the fire fighters is doing is admirable in compromising.” Scott noted 77 PERF won’t benefit him, but if the board wants the type of service it’s used to, it needs to do something.
In answering a question from the media, Scott said firefighters who have left the department in the past went onto bigger departments offering PERF, even if it meant taking a paycut for 6 months to a year. He then told the board, “I don’t want to be a training ground for someone else.”
Cates suggested trusting Scott could work PERF into the budget. “If we’re dealing with things that are unknown, how do you make a decision?” she asked. “Every year are we going to have the same questions. If you trust someone to do their job and then you don’t take their advice, are you saying you really trust him?”
Derek Patterson, president of Syracuse Professional Firefighters Union Local No. 4795, said “You’re worried 3 to 4 years out. There is room, if 3 or 4 years out the budget falls flat, we’ll work closely with the board. We’re bound by the budget. We’re not asking anyone to fail. The reason we are losing people is we don’t have a retirement plan. This is not a 40-year career. What my guys want is to protect their families.”
Cates agreed saying she’s talked to firefighters who have left the department. “Retirement is a big reason,” she said.
“Personally, I think they’re crazy,” Dixon said. “I wouldn’t touch this PERF with a 10-foot pole, but they want it. They want the safety of it.” Dixon explained he’d rather invest the money himself, but didn’t see a reason for not doing it if the firefighters wanted it and were willing to make concessions to get it.
A decision has to be made by May 1. The program would start in July. After some more discussion on what the next steps would be, the board passed the motion 4 to 4. Brad Jackson was absent from the meeting.