Council considers changes to firefighter pensions
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By DEENA WINTER / Lincoln Journal Star
Despite a personal appeal from the mayor, the City Council appears wary of a proposal to start giving firefighter pensions annual cost-of-living increases as part of a labor agreement reached with the firefighters union.
City and union negotiators have come to an agreement to improve pensions rather than give the typical salary increases this year (although some employees will still get step salary increases). But the City Council must sign off on the deal, and the council is clearly not sold, judging from its reaction to the plan during a public hearing on Monday.
Firefighters, who do not receive Social Security benefits, say their pensions don’t keep up with inflation because they don’t increase annually, as other pension plans do.
The City Council will meet at 1:30 p.m. Monday in Council Chambers, 555 S. 10th St.
Firefighters’ pensions are 64 percent of employees’ highest annual base salary. The average monthly benefit for retired Lincoln firefighters is about $1,400.
Under the proposal, the city would begin paying COLAs in 2010 at a rate of either 1.5 percent or the increase in the Consumer Price Index, whichever is less. The city would help pay for the COLA by transferring about $8 million out a fund established in 1991 to eventually start giving COLAs. Firefighters would also fund the COLA by increasing their contribution to the pension plan from 8 percent to 12 percent of their salaries.
The mayor says this plan saves the city money because salary increases could have cost the city $304,000 more if the city had given firefighters a 4 percent raise (they wanted 8 percent). The mayor asked city unions to hold raises to 2.4 percent this year, and called the COLA plan a “big concession” by the firefighters union because it’s the equivalent of a 1.7 percent raise.
“Why would the city pay an additional $300,000 this year if we don’t have to?” Beutler asked the council. “It is far more expensive to the city in the long run to pay the salary increase.“
The agreement includes a provision specifying that the city’s contribution toward the COLA will count toward wage comparisons in future labor negotiations.
Dave Engler, president of the Lincoln Firefighters Association, said his union voted overwhelmingly in favor of this plan, because they’re “fairly satisfied” with their wages but very concerned about their pensions. He said many retirees work odd jobs to make ends meet.
“The pension has proven to be a very difficult thing for our members,” Engler said.
But Councilmen Jon Camp, John Spatz and Ken Svoboda all expressed concern about the cost of the proposal over time, and whether it would really be cheaper. Camp, who said he once owned an actuarial consulting firm, was most critical of the proposal and the pension fund’s projected earnings, given the current economic turmoil.
The Lincoln Independent Business Association took a neutral position on the proposal. LIBA head Coby Mach said the council should “exercise caution,” citing a memo from the city’s actuary saying the plan could create additional liabilities and expressing concern about firefighters contributing 12 percent of their pay into their pensions. Mach said such high contributions might make it difficult to recruit qualified firefighters.
But Scott Holechek, director of client services for Ameritus retirement plans, said the proposal was “very reasonable.” He said a 1.5 percent COLA is small, and most are between 3.5 and 4 percent.
The council will vote on the proposal, and firefighter labor contract, at its next meeting, on Monday.
Reach Deena Winter at 473-2642 or dwinter@journalstar.com.
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Seems to me that there are two things this town dislikes the most, it's foreigners and firefighters. What a shame. "
If you want to get any credit for you pro fire department post, you should really put your actual name. You do not seem to understand the politics behind your bussiness and the Lincoln Fire Department. Here are a couple of educational tips for you.
You are right, you will not be applying for a job anytime soon with LFR, they only test every two years, and they just tested in summer of 2008. When they do test, more people apply for the position, then there are actual members of LFR, so it will be difficult for you to get a position.
You throw out the "they may not return to their home after they work card", can you tell me the last time a Lincoln Firefighter lost their life in the line of duty?
The city is very untrusting of the fire department for good reason, in the Last 8 years, we saw an ambulance takeover that was supposed to amke the city money, instead it cost us. We saw a chief resign amid scandal over a botched fire truck contract, THAT COULD HAVE COST FIREFIGHTER LIVES. We have seen two members severly violate the public trust placed in them with druig charges associated with duty. Keep in mind, this is what has been made public.
Therefore, the old standby of firemen are heros just does not cut it anymore, we as a community have woken up, and realize the fire department, and the union, are in actuality a very very powerfull political machine. They shape elecions and the political landscape, and they do it in a manner that will benefit themselves. "
My second comment; I find it ironic that a poster would trash a college student for not publicly linking his/her comments when they have done the very same thing. What does that say about you?
Mike Spadt no longer works for Lincoln Fire, enough said.
To say an entire organization has lost its trust with the community due to a few people who made bad choices and suffer from a disability is just a stupid argument.
Now let me vent about the arrogant, hate filled and ignorant comment that a poster has made. “YOU THROW OUT THE “THEY MAY NOT RETURN TO THEIR HOME AFTER THEY WORK CARD”, CAN YOU TELL ME THE LAST TIME A LINCOLN FIREFIGHTER LOST THEIR LIFE IN THE LINE OF DUTY”? One of my family members is listed amongst the 13 “line of duty” deaths in our community. I can tell you it is painful to have to sit here and defend my family’s loss. He was my hero, mentor, friend and my family has his spirit and good memories to hold onto. I would like you to know that you have spit on my family and our great sacrifice for this community; I would place you in the category of the Westboro Baptist cult (Google it) and I now know what our service families have been enduring. I can say that if we met on the street I would not be so mild. "
I also know there were some bad decisions made in the last years. Some of these mistakes were made when everyone in this country had there head in the sand about where we were headed.
All of these current problems, did not start last year or the year before that. Its an ongoing snooze by the American Public.
Still, we should provide a retirement package for our public workers, they do a good job for the most part. Don't blame the poor slob in the station for the Administrations errors. "