The Treasure Concerned over DROP and Pensions of The Police.

When Treasure, John Riley who is well-respected in the city, speaks to the council as a resident. So concerned he feels the need to address all of us at the city council meeting. You have to listen and take notice. Treasurer John Riley does not speak often at council meetings and when he does speak at council  related to city business. On November 9, 2010, that was not the case when the city treasurer got up as a resident. That was surprising, but what he said was particularly disturbing.

He revealed that one officer with a base salary of 96,325 will have 7 years in DROP will be getting a pension of 114,739.00 a year, and walk out with a lump sum of $800,00.00 from DROP.

The other officer he talked about will be taking home 100,000.00 a year. With a base salary, of 79,179.00 7 years in DROP. One lump sum of $700,000.00 on top of his hundred thousand dollars a year pension. To think that the average income in the city is $50,000.00 a year. I think we should all take notice at the pension  these two officers are going to be taking out of the city. I am not saying they are not good officers. I would just like you to  consider how we are going to be paying it. City Treasure said he was disturbed by these numbers I can not blame him.

The contract negotiations went on for one year. The mayor told all of us this when he said that he wanted to thank his assistant for the excellent job she did during the year-long negotiations. The city council voted the contract down 6 to 1. The council members I spoke with have informed me that they voted it down because they felt it would be a financial burden to the city.  They also informed me that at the time of the vote they thought it would go back to the negotiation table to have some of their concerns worked out. Instead, this went to arbitration the council did not have access to the arbitration. I find that unfair just my opinion but why would the council not be in on the arbitration considering they are the people who voted against it. I appreciate the mayor represents us yes we are supposed to believe he would be looking out for the taxpayer. I also understand that there was a health insurance cut that the police took in the new contract.

Some Questions:

* Can the city afford this, or better question what happens if the city can not?

* How did these pensions get this high?

* Does this have anything to do with the over time the officers get during their over time giving out traffic tickets.

* How does all of this  work together?

Questions I hope to get answers to in the following weeks.

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2 thoughts on “The Treasure Concerned over DROP and Pensions of The Police.”

  1. An officer or firefighter is going to collect there pension if he or she decides to stay for the drop or if they actually retire and leave their position with the city. If an employee decides to stay and enter into the drop that employee’s monthly pension is invested and will earn interest. According to John Riley the account earned 28% last year, but an employee who was in the drop program earned 4% which means the pension system earned 24%. If an employee has left the drop program the pension system will still earn a portion of that 28% and the money which is in there drop account is still invested in the pension system. I know the market will not earn 28% every year, but to me this sounds like a smart move by the city. Several cities have drop programs or are looking into drop programs which means it must work.

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  2. Titanium lips
    I know you put up a comment here under this post I thought I put it up. It looks like I deleted it instead I am trying to find a way to get it back. I am so sorry as soon as I find it or find how I can un-delete it I will. Again I am sorry.

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