HARLINGEN — After about four months, the local police union’s negotiations are focusing on the city’s retirement system.
Yesterday, union representatives met with city officials to discuss a proposed three-year contract in which police officers would forgo pay increases for the first two years in exchange for a return to the Texas Municipal Retirement System, or TMRS, which the city scrapped in 2007.
“The decision to forgo any pay raises for the next two years for the reimplementation of TMRS not only shows the (union’s) commitment to the future of our police officers but all city employees and the community we serve,” the union stated in a press release.
Under the proposal, the union is requesting the TMRS system become available to police officers and all city employees.
Since 2007, the private Texas Capital Group has overseen city employees’ retirements, matching contributions one-to-one.
As part of the union’s proposal, employees would contribute 7 percent, which the city would match two-to-one.
“This reimplementation will benefit existing police department staff members as well as all city employees who are not currently on the TMRS system,” the union stated in the press release.
The union “firmly believes the retention of employees is paramount and the existing retirement system fails to sufficiently take care of city employees and their families,” according to the union. “It is our hope that the reintroduction of this viable retirement system will help retain employees and improve their overall quality of life.”
Under the proposal, the city would fund police officer pay increases during the contract’s third year, City Manager Dan Serna said.
But Serna said he did not have information readily available on the cost to the city.
City officials, expected to meet with union representatives Sept. 7, are reviewing the union’s proposal, Serna said.
A topic of concern has been TRMS’ current unfunded liability, Mayor Chris Boswell said yesterday.
Boswell said he believes that figure now stands at about $6 million.
“It doesn’t mean we’ve got to pay it today or tomorrow, but if TMRS doesn’t make up for the loss, it’s conceivable we may have to pay that in order to pay the employees’ retirement account,” Boswell said.
On the city’s financial audits, he said, the figure stands as a liability, or debit.
Union’s proposed three-year contract includes
Reimplementation of Texas Municipal Retirement System
No pay increase in 2017-2018
No pay increase in 2018-2019
Pay increase in 2019-2020
How we got here
Last week, union members voted to reject a $450,000 pay package that focused on granting pay increases to officers with five or more years of experience.
This year, the city’s firefighters and police officers have worked under their contracts’ so-called evergreen clause, which expires Sept. 30, after the unions and city failed to reach agreements last year.
City Manager Dan Serna said he believes the city can reach agreements with each union before the fiscal year closes Sept. 30.
But if the parties fail to enter into contracts, the city would approve a resolution to preserve police officers’ and firefighters’ salaries and benefits while entering into mediation, City Attorney Ricardo Navarro said.
