COUNCIL OF THE CITY OF PHILADELPHIA COMMITTEE ON LABOR AND CIVIL SERVICE - - - Room 400, City Hall Philadelphia, Pennsylvania Thursday, April 2, 2009 4:20 p.m. - - - PRESENT: COUNCILMAN BILL GREEN, CHAIR COUNCILMAN FRANK DiCICCO COUNCILMAN WILLIAM GREENLEE COUNCILMAN CURTIS JONES, JR. BILL 080747 - An ordinance amending Section 17-107 of The Philadelphia Code, entitled "Contractors: Labor-Management Relationships," to transfer certain occupational classifications from the definition of Service Contracts... BILL 080930 - An ordinance amending Title 17 of The Philadelphia Code, entitled "Public Employees Retirement Code," by amending 18 Section 22-202, entitled "Membership after Transfer of Employment"... 19 20 21 - - - 22 V A R A L L O Incorporated Litigation Support Services Eleven Penn Center 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103 215.561.2220 215.567.2670 2
This is the Committee on Labor and Civil Service. I'm going to call the Committee to order. Present with me, Chairman of the Committee, Bill Green, are Councilman Bill Greenlee, Councilman Frank DiCicco and Councilman Curtis Jones. A quorum is present. The Clerk will please read the bills into the record.
Bill No. 080747, an ordinance amending Section 17-107 of The Philadelphia Code, entitled "Contractors: Labor-Management Relationships," to transfer certain occupational classifications from the definition of Service Contracts to the definition of building or construction work, all under certain terms and conditions; and Bill No. 080930, an ordinance 22 amending Title of The Philadelphia Code, entitled "Public Employees Retirement Code," by amending Section 25 22-202, entitled "Membership after 3 4/2/09 - LABOR - BILL 080930 Transfer of Employment," by allowing any police or fire employee, appointed to the position of Commissioner or Deputy Commissioner of the Police or Fire Departments, to retain membership in the retirement plan covering such member's prior employment, all under certain terms and conditions.
Thank you. Good afternoon. I'm Bill 12 Green, Chair of the Committee. Bill No. 080747 is being held to the call of the Chair. I'll do that officially when we begin our meeting. We will now take testimony on Bill No. 17 080930. Before we begin, Councilman Greenlee, do you have any comments?
No? Okay. So testifying today are Gwendolyn Bell, Executive Director of the Board of Pensions and Retirement, and Gene Blagmond from the Fraternal Order of 4 4/2/09 - LABOR - BILL 080930 Police. (Witnesses approached witness table.)
Good afternoon, Councilman Green and members of the Committee on Labor and Civil Service. My name is Gwendolyn Bell and I'm Executive Director of the Board of Pensions and Retirement. I am here today to testify in support of Bill No. 080930, which was introduced by Councilman Greenlee. Bill No. 080930 would allow Police and Fire Commissioners and Deputy Commissioners to remain in the police and firefighter pension plans rather than being moved to a civilian plan when they are promoted to a deputy-level position. There are currently 14 Police and Fire Commissioners and Deputy Commissioners who are in Plan A, firefighters, and Plan 5 4/2/09 - LABOR - BILL 080930 B, police officers. Presently, there are only two current members who have been transferred to Plan Y, municipal employees, who would be affected by this bill. The differences between the police and firefighter plans and the civilian plans concern retirement eligibility and eligibility for unreduced benefits. Benefits accrue in the same for all three plans, except that between 10 and 20 years of service the police and firefighter plan accrues 2.2 percent of final average salary per year using a two-year average for final average salary, while the civilian plan accrues 2 percent on the final average salary per year using a three-year averaging period. In addition, the normal retirement age for the police and firefighters plan is 50 compared to age 60 for the civilian plan. Assuming that all 14 participants were transferred to the 6 4/2/09 - LABOR - BILL 080930 civilian plan, the estimated additional total future liability would be $1.3 million, which is actuarially immaterial, representing only 0.18 percent of the total liability of the two funds combined. I want to thank you for consideration of modifying this bill.
I don't have a prepared statement. I just wanted to state that the Fraternal Order of Police, Lodge 5, and Local of the firefighters 16 are supportive of this bill. 17
Thank you. 18 One quick question for you, 19 Ms. Bell. Is your testimony -- are you 20 representing the Administration here 21 today? 22
Thank you. Anybody else have any questions? 7 4/2/09 - LABOR - BILL 080930 (No response.)
Seeing none, we will hold Bill No. 080747 to the call of the Chair and we will move -- we will recess the hearing and begin the public meeting on Bill No. 080930. Councilman Greenlee.
Thank you, Mr. Chairman. I move that Bill No. 14 080930 be reported out of this Committee with a favorable recommendation and, further, that the rules of Council be suspended to allow for first reading at our next session of Council. (Duly seconded.)
It has been moved and properly seconded that Bill No. 22 080930 be reported out of the Committee on Labor and Civil Service with a favorable recommendation and with a suspension of the rules to permit first 8 4/2/09 - LABOR - BILL 080930 reading at the next Council session. All in favor? (Aye.)
The motion is carried unanimously. Thank you. That will conclude today's public meeting. (Committee on Labor and Civil Service concluded at 4:30 p.m.) - - - 9 CERTIFICATE I HEREBY CERTIFY that the proceedings, evidence and objections are contained fully and accurately in the stenographic notes taken by me upon the foregoing matter on April 2, 2009, and that this is a true and correct transcript of same. ______________________________ MICHELE L. MURPHY RPR-Notary Public (The foregoing certification of this transcript does not apply to any reproduction of the same by any means, unless under the direct control and/or supervision of the certifying reporter.)