$281K in vacation, sick pay goes to 5

Pact increased payment of unused sick days for firefighters

By John Howell
Posted 3/31/16

Five recent Fire Department retirees have been paid a total of $281,415.76 in unused vacation pay and sick leave, according to information obtained from City Treasurer David Olsen.

Chief Edmund …

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$281K in vacation, sick pay goes to 5

Pact increased payment of unused sick days for firefighters

Posted

Five recent Fire Department retirees have been paid a total of $281,415.76 in unused vacation pay and sick leave, according to information obtained from City Treasurer David Olsen.

Chief Edmund Armstrong, who upon retiring started receiving annual retirement pay of $97,975.20, received an additional $55,034.70 in unused sick pay and another $22,538.02 in unused vacation pay. Assistant Chief Bruce Cooley, who retired at the same time as Armstrong, was paid $50,958.60 in unused sick pay and $15,530.24 in unused vacation pay.

Other recent retirees and their respective sick and vacation pay are Bryan Owens, $38,200.38 and $9,289.75; Carl Pecchia, $36,917.99 and $8,263.68; and Michael Shea, $36,418.72 and $8,263.68.

Retirement benefits for municipal employees differ greatly by contract and union, with firefighters generally having the most generous package. While neither Armstrong nor Cooley were members of the union at the time of retirement, both were subject to the provisions of the contract, according to Chief James McLaughlin.

Unlike the superintendent of schools, who works under a contract renewed periodically by the School Committee, the police and fire chiefs as well as city department directors come under the same contract provisions as the employees they direct. With few exceptions (directors and chiefs forewent raises during the recession), these non-union employees receive the same benefits as union members.

Also, the benefit packages of firefighters differ dramatically by municipality, according to the study done by WatchDog RI, the non-profit organization formed by Ken Block, the founder of the Moderate Party who ran as a Republican gubernatorial candidate in 2014. Block was reached by telephone last week while on vacation in Hawaii.

Warwick is one of the more generous communities when it comes to unused sick pay. Yet, on the other hand, it does not allow for the “banking” of unused vacation time, which was removed from the contract in 2002.

“That’s a bad practice,” Block said of “banking unused vacation time.” In the case of the recent retirees, they were paid for vacations they would have been entitled to after Jan. 1.

There is a 140-day limit on the accrual of sick days that, according to the 2015 contract, are paid out at 75 percent of the daily pay based on five days at the rate of pay on retirement. The payout rate had been 50 percent and, based on a five-day workweek until the most recent contact, which Armstrong helped negotiate, when the benefit was bumped to a 75 percent payout based on a four-day work week.

Given the lucrative sick day payouts for firefighters, Block said he wouldn’t be surprised if firefighters planning on retirement seek to maximize payouts of unused sick days.

“These benefits shouldn’t be gamed,” he said.

There’s more to it than retirement benefits, says Block. His analysis of fire department contracts, personnel, equipment and cost to the taxpayer covers everything from clothing allowances to longevity and overtime.

Overtime has been an issue with the department, with its costs consistently exceeding the budget, often by more than $1 million. This has been a flash point with the City Council, which year after year has demanded the department adhere to the budget only to see overtime costs soar.

Ironically, at least according to the WatchDog RI study for 2014, Warwick was one of the better performing departments relative to overtime. Warwick’s overtime cost for the year was $1.5 million, Block said.

Block said Warwick does not allow for the “spiking” of pensions by adding overtime pay to regular pay to use as the basis of pay at which pensions are calculated. Johnston is one of the few departments that uses overtime pay over the three years prior to retirement in calculating pension payments.

“The complexity of the contracts makes it really hard to figure out,” Block said.

As an example of the diversity of contracts, Block noted that Cranston adds in longevity while determining the value of vacation days, which he said in some cases doubles their value.

By contract, firefighters who have been on the job for one year receive 12 vacation days. That increased to 16 days for those who have been with the department from five to 10 years, and jumps to 20 days for those employed up to 20 years. Those with more than 20 years of service get 24 days.

The municipal employee contract has similar provisions for vacation days, with 12 vacation days for those with three to five years of service climbing to 28 days for those with 20 or more years of service.

City Personnel Director Jane Jordan explained a maximum of 12 vacation days can be carried over to the following year for those with 30 years of service. The key date is July 1, which is the cutoff for either using the vacation time and banking only those days allowed by contract. Under those terms, she said, the maximum vacation an employee with 30 years of service could accrue and be paid for on retirement is 40 days.

There is no banking of vacation days for the fire department.

“If I don’t use them,” Assistant Fire Chief David Morse said in an interview Tuesday of vacation time, “they go away.”

As for the issue of overtime, McLaughlin said the department would likely run over budget for the current year because of several department members with “longtime injuries.” Looking forward, he said, the control of overtime depends largely on “floaters.” These are personnel who fill in for personnel who are on vacation or sick and maintain minimum manning provisions without incurring overtime.

“We try to have a full staff of floaters,” McLaughlin said.

Will the $281,415.76 paid the five retirees put a hole in the budget?

The department budgeted $345,000 for the payment of unused sick and vacation time, but as Morse points out, the pay of the retirees also comes off the payroll. (They are being paid pensions now.)

“Their salaries were projected for the full year,” Morse said, “and now they’re no longer being paid out.”

Comments

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  • Justanidiot

    Vacation and sick days are exactly that. If you don't use them when you are employed, then you lose them.

    Thursday, March 31, 2016 Report this

  • Thecaptain

    The article does not make sense, just more smoke 'N' mirrors. If you cant bank vacation days how did the chief leave with $22,538 in unused vacation days? The budgeted $345,000 for unused sick pay is way off from the real number as 2015 the actual number was $443,000 and 2016 is going to go through the roof. Meanwhile, the hero's are buying birthday cake at stop & shop on the clock.

    I think we all need to take up a collection for the former chief as he is in morning due to not being chosen this week to be the new chief of NK. How can he possibly live on such a measly pension with a 3 % compound cola and free lifetime healthcare?

    Thursday, March 31, 2016 Report this

  • Reality

    What a disgrace.....Scottie continues to raise taxes to pay back his cronies. There should be a cap on a city pension of $40k. This abuse of the taxpayers has to stop.

    Where was Wilkinson as chair of the finance committee? Missing like usual Vella. She was too busy with her 2 amendment legislation.

    Thursday, March 31, 2016 Report this

  • Bob_Cushman

    Over the last decade I as well as others have been sounding alarm over the escalating costs of these benefits and have looked at the impact this cost is having on the city's ability to provide municipal and educational services. What has happened is every other line item in the budget not related to retired and active employee benefits have been reduced to the point where a couple years ago only THREE CENTS of every new tax dollar was allocated to non-personnel related expenses.

    To put into context just how much a pension like this will cost, here are the facts:

    A $100,000 a year pension with a 3% compounded Cost Of Living Increase will grow to $115,927 payout in 5 years. In 10 years it will grow to $134,392 pay out. In 25 years the pension will grow to $203,279.

    All told in 25 years Warwick Taxpayers will pay $3,645,926 to that one individual. According to a freedom of information document provided from the city, the amount contributed to get this pension was approximately $150,000.

    What impact is this going to have on the city pension plans when the amount of money needed in the plan to fund such payouts can never be met? It means the plans will continue to draw down its assets to a point where taxpayer cost will continue to escalate translating into non-stop property tax increases.

    Should the city put a cap on pension payments and stop automatic COLA enhancement?

    Keep in mind this is just a cost in the requirement equation as free lifetime healthcare for husband and wife is also included.

    Can anyone tell me how this is sustainable and more importantly FAIR?

    I would love to hear from some of the city workers who disrupted my Dec 15, 2014 presentation when my only point of making the presentation was to warn of the dire consequences unless real changes to reduced expenses are made.

    Thursday, March 31, 2016 Report this

  • richardcorrente

    Cost Of Living Adjustments are supposed to "adjust" up OR down as the economy does. There should never be a guaranteed Cost-Of-Living-INCREASE". That is not the intent of the 40 year old law. As far as the taxpayers getting their money's worth, Warwick Firefighters are paid twice what their counterparts in New York City are paid and 3 times what Jacksonville Florida pays their firefighters.

    When we hire the next firefighter, do we need to offer so much? Can we save the taxpayer some of their hard-earned money and still get quality candidates? Would it hurt to try? The firefighters deserve a quality compensation plan but if there is so much "extra" in that they aren't even using ...

    Maybe we should protect our present team by not spending so much on the next one. The money saved can go half to the present firefighters and half to the taxpayers. That is a win-win for all.

    Richard Corrente

    Democrat for mayor

    Thursday, March 31, 2016 Report this

  • JRollins

    Richard, do you have numbers to back up those salary claims, just seems off to me.

    Thursday, March 31, 2016 Report this

  • richardcorrente

    Cost Of Living Adjustments are supposed to "adjust" up OR down as the economy does. There should never be a guaranteed Cost-Of-Living-INCREASE". That is not the intent of the 40 year old law. As far as the taxpayers getting their money's worth, Warwick Firefighters are paid twice what their counterparts in New York City are paid and 3 times what Jacksonville Florida pays their firefighters.

    When we hire the next firefighter, do we need to offer so much? Can we save the taxpayer some of their hard-earned money and still get quality candidates? Would it hurt to try? The firefighters deserve a quality compensation plan but if there is so much "extra" in that they aren't even using ...

    Maybe we should protect our present team by not spending so much on the next one. The money saved can go half to the present firefighters and half to the taxpayers. That is a win-win for all. I have met with many firefighters and I believe they all want "what's fair". I also believe I can find that fair compensation. Fair to everyone. Firefighters, taxpayers, everyone.

    Richard Corrente

    Democrat for mayor

    Thursday, March 31, 2016 Report this

  • JRollins

    Richard, quick search of salaries got me this info.. New York firefighter $76,518, Jacksonville 52,800 and WFD around $61,000. No sure where you got your numbers but something doesn't add up.

    Thursday, March 31, 2016 Report this

  • JRollins

    Richard, if you are going to compare numbers please compare accurately, new fire fighter salary to new firefighter salary in each of the cities you listed. Or compare 5 year firefighter to 5 year firefighter. i would hope your not just making up numbers.

    Thursday, March 31, 2016 Report this

  • Thecaptain

    My god, more comments made without a shred of research.

    Thursday, March 31, 2016 Report this

  • allent

    firefighters are a bunch of entitled thieves who like to throw it back in our face by taking million $ trucks out to Stop and Shop to pick up a birthday cake.

    Thursday, March 31, 2016 Report this

  • ASmith

    They also run into the deadly fire that you would more than likely run away from. Not that I am judging anyone who would run away from a fire. Hopefully hepdog never requires the assistance of a firefighter, so he or she can continue to post naive statements on the internet.

    Friday, April 1, 2016 Report this

  • JRollins

    Richard, did your computer break. We are still waiting for your numbers to back up claims that WFD makes double FDNY. Be a man and admit your wrong?

    Friday, April 1, 2016 Report this

  • davebarry109

    Yet again, taxpayers (I assume) are writing here to complain about vacation and sick time payouts. The article does not clearly explain that the former chief had accumulated days before the changes were made so he therefore got to cash them out. If you folks don't like the rules, pay attention to contract negotiations and demand changes. I do believe the PD, FIRE, and Teachers most of all need to have changes made for INCOMING personnel to keep the system solvent. If that doesn't happen, the retires will take a haircut when the system fails due to huge pension and healthcare outlays.

    However, you cannot change past contracts. This isn't the State of RI, these are private pension systems. The WPD Police I pension is one of the few solvent ones in the state.

    FYI, no one gets healthcare for life. At 65, depending on which contract you left under, you go on Medicare. You may have a Blue Cross 'kicker' that pays the difference of what Medicare doesn't cover versus Blue Cross but everyone goes on Medicare.

    Tuesday, April 5, 2016 Report this