PROVIDENCE – The city has reached a tentative four-year pension and wage agreement with the Providence Fraternal Order of Police Lodge #3 union, Mayor Jorge O. Elorza announced on Thursday.
The agreement would retroactively span from July 1, 2019 to June 30, 2023.
The agreement will require officers to contribute an additional 5.5% of their salaries towards the city’s pension fund, totaling a 13.5% annual contribution. The deal also included 4.5% wage increases over the first three years of the agreement and a 3.75% increase in the final year.
The city expects the deal to reduce its long-term pension liability by $25 million to $30 million.
“This agreement achieves historic pension reform as a means for longer-term financial stability for the city, while making meaningful investments in the future of our police department.” said Elorza. “I am committed to ensuring our approach to public safety is driven by long-term thinking and approaches to public safety. This contract serves as one part of that overall commitment and I thank Providence FOP President Michael Imondi and the entire FOP leadership team for their good-faith efforts to reach an agreement.”
The agreement will need to be approved by the membership of the union and ratified by the City Council.
“This agreement provides our members with the competitive wage increases and wage rates which they deserve as police officers in our capital city, and brings our base pay rate up into the top 25% in the state while maintaining other benefits in line with other municipal police departments,” said Michael Imondi, president of the Providence Police Union. “The agreement also partners the FOP with the city in increasing funding to the pension fund through our members’ commitment to increase pension contributions, which along with the city’s continued funding will reduce the unfunded liability and preserve our pension benefits over the long term.”
Additional changes agreed upon include the creation of an Other Postemployment Benefits Trust to address long-term health care liabilities, the city said, as well as a shift to a four-tier health care plan that includes health care co-share increases for active members and retirees, and competitive co-shares for dental coverage.
