PROVIDENCE – The beleaguered Providence pension fund will get a $31 million boost under the new contract between the city and the Fraternal Order of Police Union Lodge No. 3.
The contract, which was approved by the Providence City Council in a 9-3 vote on Thursday, scales up officers’ contributions to the city pension fund in incremental increases, hitting 13.5% in 2022. The increase over the current 8% contribution is expected to bring in $31 million over the course of the four-year contract, which is backdated to 2019 when the prior agreement expired.
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Council members on Thursday lauded the contract for its boost to the severely underfunded pension system, which faces a more than $1.2 billion in unfunded liabilities. The proposal previously received a positive recommendation from the council’s Committee on Finance.
However, some also noted the absence of police reform in the contract. Councilwoman Nirva LaFortune cited this as her “major concern” with the contract and the reason why she did approve the agreement.
Council members Kat Kerwin and Rachel Miller also voted against the contract, while Councilman John Goncalves abstained.
The contract also gives annual pay increases to police officers – 4.5% each year for 2019-2021, and 3.75% for 2022 – collectively costing the city $12 million over the next four years.
With the raises, police union members’ base wage rates would be within the top 10% of the state, whereas they previously fell in the bottom 25%, according to the city.
The contract also increases police officers’ annual contributions to their health care plans and sets a trust for other post-employment benefits with $200 annual contributions from officers beginning in fiscal 2022.
The mandatory retirement age would also increase from 63 to 65.
The contract has already been signed by Mayor Jorge O. Elorza and FOP President Michael Imondi.
Nancy Lavin is a PBN staff writer. You may reach her at Lavin@PBN.com.
