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The original item was published from 6/28/2019 5:10:26 PM to 7/7/2019 12:00:12 AM.

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Posted on: June 28, 2019

[ARCHIVED] East Greenwich Town Council approves 2019-2022 Contracts

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By a unanimous vote the East Greenwich Town Council approved three year agreements with the East Greenwich Municipal Employee’s Association (NEARI), Rhode Island Local 1322 (Laborers), IBPO Local 472 (Police) and IBPO Local 472 (Non-Police) unions. All unions voted to approve their contracts earlier this month.  The provisions of the contracts were reviewed publically by Town Solicitor Andy Teitz, Acting Town Manger Joseph Duarte and Town Financial Consultant Michael D’Amico at a special meeting of the Council on Monday, June 24, 2019. 

The most significant provisions of the contracts include:

NEARI

  • Wage increases of 0% in 2019, a 2% increase in 2020, and a 2% increase in 2021.
  • The Town’s payment for Medicare gap coverage for future retirees is capped at $250 per month.  This change will immediately reduce the Town’s actuarially required contribution to retiree healthcare costs (OPEB) by $282,000 over the three year contract.  The total reduction in retiree healthcare costs liability is $764,000 in 2020 and $1.3 million by 2028.

LABORERS

  • Wage increases of 0% in 2019, a 2% increase in 2020, and a 2% increase in 2021.
  • The Town’s payment for Medicare gap coverage for future retirees is capped at $250 per month.  This change will immediately reduce the Town’s actuarially required contribution to retiree healthcare costs (OPEB) by $282,000 over the three year contract.  The total reduction in retiree healthcare costs liability is $746,000 in 2020 and $1.3 million by 2028.

POLICE

  • Wage increases of 0% in 2019, a 2% increase in 2020, and a 2% increase in 2021.
  • The Town’s payment for Medicare gap coverage for future retirees is capped at $250 per month.  This change will immediately reduce the Town’s actuarially required contribution to retiree healthcare costs (OPEB) by $998,000 over the three year contract.  The total reduction in OPEB liability is $2.6 million in 2020 and $5.4 million by 2028.
  • Beginning July 1, 2020, officers will be paid 12 hours per holiday rather than 10 hours.
  • Employees hired after July 1, 2019 must be employed with the Town for 20 years before the employee will receive any retiree health benefits from the Town, and work 27 years before receiving payment of 100% of retiree healthcare coverage.

NON-POLICE 

  • Wage increases of 0% in 2019, a 2% increase in 2020, and a 2% increase in 2021.
  • The Town’s payment for Medicare gap coverage for future retirees is capped at $250 per month.  This change will decrease the Town’s pension liability and the actuarial required contribution to its OPEB trust in the future.

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