Palmyra borough, police agree to new 4-year contract

Dec. 19--PALMYRA -- The borough and its police union have a new four-year agreement after two years of negotiations.

On Tuesday, borough labor attorney Mike Miller, of Eckert, Seamans, Cherin & Mellott LLC, presented council with the details of the arbitration award.

The police department's contract expired at the end of 2011. Negotiations came to a halt when the borough and the police union could not agree on health-care benefits. Under state law, if the two sides cannot come to an agreement on the terms of a new contract, it goes to a board of arbitration.

Miller said the new contract is effective Jan. 1, 2012.

Miller said wages were not the main issue in any of the talks. The contract provides for a 2.5 percent increase in wages for the police next year. The salaries are based on the Consumer Price Index each year. The minimum increase is 2.5 percent and the maximum is 5 percent.

The arbitration board decided that police officers will have to contribute $40 per pay to their health-care insurance premiums, effective Jan. 1, Miller said.

"That's a first in Palmyra history," Miller said, noting that the amount is about 38 percent more than the police were offering during the negotiations. "It's a significant change because here we do not have post-retirement health care as we do in other communities. We have an HRA plan."

The borough funds police employees' Health Reimbursement Account, which reimburses retired officers for their out-of-pocket medical expenses and health insurance premiums. The regular non-uniformed employees do not have this arrangement, according to borough manager Roger Powl.

The board also agreed to small increases for longevity between years 20 and 26, Miller said, pointing out that the police chief is the only one who is currently eligible for the benefit.

In addition, Miller said, the uniformed employee contributions to the Police Pension Plan was reduced from 5 percent to 2.7 percent for 2014.

Powl said under Pennsylvania Act 600 and the borough's police pension plan, officers are required to contribute 5 percent of their salary to the police pension plan. Each year, he explained, the council has the option of waiving or reducing that contribution by resolution and has done that for many years. But the 2011 actuarial study for the borough shows that there may be some shortfalls in the future, so the borough is now faced with an annual payment, he said. For 2014 and 2015, the borough needs approximately 2.7 percent from the officers to cover the payment.

As a result of the arbitration board's decision, Miller said, the borough will have some savings next year.

"All told for next year, the borough is set to save about $75,000," Miller said. "It's a reasonable award. It's worked out well for the borough."

Councilman Travis Finkenbinder asked what the borough will pay in legal fees as a result of the arbitration.

Powl said the final bill has not been submitted, but he estimated it would be about $15,000.

Also Tuesday night, council authorized giving a 2002 Glock 22 .40 caliber pistol to retiring police officer Vincent Stankovich, who has 25 years of service to the department. The gun was used by Stankovich while on the force. Initially, he offered to purchase the gun, which is valued between $200 and $250.

Councilmen Robert Dailey, Travis Finkenbinder and Gary Laundermilch cast dissenting votes.

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