Politics & Government
Proposal Seeks to Increase Pensions for Town Employees
Bel Air's police and civilian employees would both benefit from the proposal.
The is scheduled to vote Monday night on a pair of resolutions that would significantly increase pensions for town employees. The board will also vote on several other resolutions at its 7:30 p.m. meeting.
A plan was dropped tabled the matter. The latest proposal for a permanent change to the pension system is part of an effort to improve recruitment and retention of police officers.
The current pension system pays an annual pension between 40 and 50 percent of an employee’s average salary for their final three years before retiring. The proposals up for vote Monday, however, would allow for annual payouts of up to 60 percent of a police officer's final three years average salary, and 55 percent for a civilian employee. (See charts below.)
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Town Administrator Chris Schlehr told Patch the resolutions are intended to discourage employees from making early withdraws.
Schlehr compared the account to a snowball, saying it “starts rolling a little slower” when employees take all their money at once.
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“The intention is to discourage future retirees from taking a lump sum payout,” Schlehr said. “If they decide to withdraw a lump sum contribution then they do not get this enhanced benefit.”
The resolutions also increase the town’s contributions to the pension plans, which would cost about $35,000 more annually, according to Schlehr.
“I think it’s better. It’s a recruitment and retention issue for police for sure,” Schlehr said. “It enables you to recruit easier and to retain officers if we can enhance their pension benefit to the levels that we’re talking about.”
Leo Matrangola said the proposed plan would put his department on par with other agencies in Maryland.
"In the ‘90s, I lost 10 officers in a three-year period to ," Matrangola said. "Almost all 10 of them … are now either in specialized units or are ranking officers."
In the current plan, civilian employees contribute 2 percent of their salary to the pool while police officers contribute 7 percent. Those numbers would remain the same, but the town’s contributions would increase from 8 percent for both to 8.7 percent for civilians and 9.4 percent for police officers.
Since the votes are for resolutions, and not ordinances, there will be no public hearing on the changes. There is, however, general public comment scheduled after the votes. (See attachment for full agenda.)
Proposed Police Officer Payout Plan
Age MinimumYears of
Service Percentage
Multiplier Percentage
of Salary
Payout* 60+ 20–25 2 percent 50 percent Any 25+ 2 percent 50 percent Any 26 2 percent 52 percent Any 27 2 percent 54 percent Any 28 2 percent 56 percent Any 29 2 percent 58 percent Any 30+ 2 percent 60 percent
Proposed Civilian Payout Plan
Years of
Service Percentage
Multiplier Percentage
of Salary
Payout* 60+ 15–19 1.8 percent 1.8*(years) 60+ 20–24 1.9 percent 1.9*(years) 60+ 25 2 percent 50 percent 60+
26 (Plus 1 percent
for additional year) 51 percent 60+
27 (Plus 1 percent
for additional year) 52 percent 60+
28
(Plus 1 percentfor additional year) 53 percent 60+
29
(Plus 1 percentfor additional year) 54 percent 60+
30+
(Plus 1 percentfor additional year) 55 percent
Employees who retire before the listed eligibility will be governed by the rules of the current pension plans.
Existing Police Officer Payout Plan/Plan for Early Withdraw Penalty
Age
Minimum
Years of
Service
Percentage
Multiplier
Percentage
of Salary
Payout*
Any
25
2 percent
40 percent
Any
26
(Plus 1 percent
for additional year)
41 percent
Any
27
(Plus 1 percent
for additional year)
42 percent
Any
28
(Plus 1 percent
for additional year)
43 percent
Any
29
(Plus 1 percent
for additional year)
44 percent
Any
30+
(Plus 1 percent
for additional year)
45 percent
Existing Civilian Payout Plan/Plan for Early Withdraw Penalty
Age
Minimum
Years of
Service
Percentage
Multiplier
Percentage
of Salary
Payout*
60+
25
1.6 percent
40 percent
60+
26
(Plus 1 percent
for additional year)
41 percent
60+
27
(Plus 1 percent
for additional year)
42 percent
60+
28
(Plus 1 percent
for additional year)
43 percent
60+
29
(Plus 1 percent
for additional year)
44 percent
60+
30+
(Plus 1 percent
for additional year)
45 percent
*The numbers in this column would be multiplied by the average of the emloyees salary in their final three years of service. The result would be the annual pension payout.
Budget Changes
The board is scheduled to vote on Resolution 959-11, which approves changes to the fiscal year 2011 budget that Finance Director Lisa Moody outlined at Tuesday’s work session. From the general fund, the Town of Bel Air is being reimbursed for work on a new fiber line.
The line will improve Internet connectivity. It will also help link Town Hall to the Department of Public Works and the Board of Education to Southampton Middle School. Money was also spent for repairs to police vehicles.
From the special revenue fund, a total of $236,130 comes from a grant from the Maryland Emergency Management Agency and a Community Legacy Grant.
In all, the changes will increase the 2011 budget by $186,752. The money would be made up from a number of revenue sources, including red light camera revenue and reimbursement from Harford County schools for use of police for security.
The board's next work session is scheduled for June 14.
