PHILADELPHIA – Today, the City of Philadelphia and the Fraternal Order of Police, Lodge 5, received the arbitrators’ award for a three-year contract. State law dictates that the City’s fire and police contracts are decided by a panel of three arbitrators, one selected by the City, one selected by the union, and one neutral arbitrator appointed by the American Arbitration Association. The arbitrators hear testimony from numerous witnesses and review thousands of pages of exhibits presented by both sides over a series of months before issuing their decision.
The arbitrators’ decision is available HERE. The City was awarded increased pension contributions that will provide more than $160 million to the Pension Fund over the next 13 years. While different from the combination of tiered increased contributions and a stacked hybrid that the Administration negotiated with DC33 and sought in the FOP arbitration, this award does not derail the City’s goal of having the City Pension Fund 80 percent funded within 13 years. With this award, the City has now achieved pension reform with its two largest unions. The City will continue to seek a stacked hybrid model with IAFF Local 22 and DC47.
The City was awarded operational changes that are expected to control overtime costs, including limiting summer vacation for new officers and adjusting work schedules around large special events. The City also received a one-month funding holiday from contributing to the FOP’s healthcare plan in light of the health plan's significant reserves. Finally, the Administration gained the right to deliver court notices electronically, which will allow more evening and overnight resources to be devoted to crime suppression and settled a grievance over the FOP's opposition to electronic delivery.
The City also successfully opposed the FOP’s request to end the requirement that officers live within the City for their first five years of employment as well as their request to end the requirement that officers remain in Pennsylvania, should they move out of the City after their first five years of employment.
The Administration is examining its options for funding the award’s wage increases and other components, and it will be submitting a revised FY18-FY22 five-year plan to PICA within the next 20 days.