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Council approves MOU to credit prior municipal police service; discusses pension buyback provision
Summary
Council approved a memorandum of understanding so new officers can receive partial credit for prior municipal police service to start at higher pay steps; the solicitor and staff also discussed a new law allowing prior municipal service buyback that will require an amendment to the police pension plan and an actuarial study.
Monroe Borough Council on July 15 approved a memorandum of understanding that allows newly hired police officers to receive credit on the borough's pay scale for previous municipal police service, and discussed a separate statutory change that allows police officers to buy back prior municipal service for pension credit.
Why it matters: The MOU is designed to make Monroe more competitive in recruiting experienced officers by ensuring some prior years of service count toward pay-step placement. Separately, a new law that permits buying back prior municipal police service would require changes to the borough's pension plan and an actuarial cost study before adoption.
Council voted in favor of the MOU, which staff said previously produced a larger applicant pool when used in earlier hiring cycles. The council discussed the formula used to convert prior service into credit; staff said the typical approach is to grant partial credit (for example, 50% of prior years of service, as in prior practice), with specifics to be reflected in the MOU and consistent with the union agreement.
The solicitor and staff also told council members that a recent law permits officers to buy back municipal service to increase pension benefits, but that adding the buyback option to the borough's pension plan requires an amendment and an actuarial cost study. The solicitor recommended engaging a law firm or pension expert to review the plan and prepare required amendments to remain tax-compliant and actuarially sound.
The council approved the MOU with the police union and instructed staff to finalize related documents. Council members said the change helps recruitment and that the union had endorsed the agreement. The solicitor said the borough would need to coordinate the pension amendment and actuarial review if the council decides to adopt the buyback provision.
Next steps: staff to finalize MOU language and union ratification, and to obtain an actuarial cost study and legal review to amend the police pension plan if council directs adoption of the buyback provision.
