Groups focus on pension

12/07/2006

Marissa Yaremich , Register Staff

WEST HAVEN — The West Shore Taxpayers Association and the district’s fire commission agreed recently to work together on a solution for the $30.8 million unfunded pension liability. In an effort to reduce future pension obligations, the fire commission agreed to ask the firefighters’ union to consider revisiting the contract to reduce the overall pension obligation. The union’s six-year contract expires in 2010.

Though the commission argued contracts supersede the district’s home rule, the association’s president, attorney Mark Milano, said he believed the contract violated the West Shore charter because it states pensions shouldn’t include stipends, longevity, holiday pay and other remuneration, some of which contributes toward firefighters’ final pensions, according to the contract.

The association offered seven potential contract changes, including employee eligibility requirements and a 50 percent reduction to surviving spouses, who now get 100 percent of employees’ pensions.

Commissioner Mary "Tina" Peckingham found no fault with asking the union, but she and other district members noted how difficult it would be to get any union to reconsider changing a contract.

"Believe me when I tell you we did beat our heads against the wall" to institute contract changes, she said.

The West Shore Taxpayers Association gained momentum last spring when public protests resulted in a reduced 2006-07 budget, including an $840,000 cut from the pension liability fund.

"It’s easy to criticize, but it’s not always easy to solve a problem. We are here in that spirit. We want to help solve a problem," said Milano.

District records show the 2005-06 pension obligation total was $1.14 million, which is meted out to six beneficiaries and 21 retired employees. On average, beneficiaries received $36,525 and retirees $44,008 for that year.

Commission Chairman Robert Pimer said the commission is aware of the past failure to adequately fund the pension and the city’s financial problems.

"We are here to listen," Pimer said.

The meeting focused on offering the commission alternative solutions rather than "throwing money at the problem." Both parties recognized that a solution could take years. The commission has been trying to adhere to an actuarial study’s suggestion to annually fund the pension liability.

"The commission has been looking at this for a number of years," West Shore Fire Chief Harold Burns said.

The commission also agreed to consider using the association as consultants during contract negotiations regarding a reopener clause for new hires. The panel also will consider a suggestion to replace the pension with a defined-contribution plan that could be managed by either the district or the state.

Pimer said the commission is reducing costs by not filling five vacancies, instead having firefighters work overtime.

District financial records show this tactic has inflated salaries for 10 of the district’s 34 employees, who will make upwards of $101,900. The overtime does not, by union contract, count toward their final pensions.

Capt. Richard Beirne and firefighter Bob Keefe, West shore’s union president and steward for the International Association of Firefighters Local 1198, could not be reached for comment.

Marissa Yaremich can be reached at myaremich@nhregister.com or 789-5742.