Early Retirement Approved for White Collar Union – 11/24/2009

Posted by Bob on November 24, 2009 under Daily Blogs | Be the First to Comment

The Borough of Naugatuck has reached agreement for an early retirement package with the United Public Service Employees Union (“UPSEU”) Local 424 Unit 15.  UPSEU represents various white collar employees throughout several municipal departments in the Borough.  The Memorandum of Agreement Regarding Early Retirement and the Early Retirement Incentive Program documents can be viewed by clicking the respective link.  A financial analysis of the agreement can be viewed here.  The Board of Mayor and Burgesses approved the deal at the November 3, 2009, regular meeting, and UPSEU membership recently ratified the plan.  The original proposal was made by UPSEU to the Borough and negotiated throughout the past few months.

The most significant benefit to the Borough for this agreement is that all new hires into the bargaining unit will receive defined contribution pension benefits.  This represents the second (2nd) bargaining unit this year to agree to such a provision, as The Borough’s Chapter 90 Supervisors Union approved such a plan this Summer.  A defined contribution pension plan is similar to the 401 (k) plans made available in the private sector and will provide significant savings for taxpayers in years to come.

UPSEU also agreed to allow what amounts to approximately one and one half (1 1/2) positions to come out of the bargaining unit.  In addition, those retiring on the plan will relinquish the five (5) personnel days granted to UPSEU in exchange for accepting a pay freeze for the 2009-2010 fiscal year.

As stated in the financial analysis referenced herein, the Borough will begin to achieve savings under the plan in the 2012-2013 fiscal year.  While there are slight increases in 2010-2011 and 2011-2012, the agreement is expected to save the Borough just under FIVE HUNDRED THOUSAND and 00/100THS ($500,000.00) DOLLARS over the course of the next ten (10) years, with additional savings continuing into the future.  This is primarily caused by the change to the pension plan.  The cost to the 2009-2010 budget is expected to be less than ONE THOUSAND FIVE HUNDRED and 00/100THS ($1,500.00) DOLLARS.

We are grateful to all retiring Borough employees who have devoted their time and talent to municipal government throughout the years.  Their dedication, work ethic and friendship will be dearly missed.  We wish much happiness and great health to all.