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Wayne council approves pension transfers, DROP additions and policy fixes for city employees
Summary
The council approved a set of personnel items: terminating a MERS health care savings plan for one division and transferring funds, adding three members to the DROP program, and clarifying a restricted-duty policy and restoring sick-bank hours for affected employees.
Wayne City Council on Sept. 16 approved three personnel and benefits measures affecting city employees: the termination of a Municipal Employees Retirement System (MERS) health care savings plan for Division 52 with funds transferred to the city’s Medical Expense Reimbursement Plan (MERP); the addition of three Division 23 members to the Deferred Retirement Option Plan (DROP); and a clarifying modification to Article 12 (restricted-duty policy) accompanied by restoration of sick-bank hours for employees who lost time due to inconsistent language.
A staff presenter described the MERS action as the final procedural step in a settlement previously approved in July and said MERS required a separate council resolution to process the transfer. When asked whether there were any penalties for moving the funds, the staff answer was, “No. No. There is just a transfer.”
On the DROP item (Division 23 — senior members of the union), staff explained that the deferred retirement option allows participating members to remain actively employed while their pension accrues in a deferred account. “It’s the deferred retirement option plan for the active members to hold their pension,” the presenter said. Staff said members in DROP stop accruing additional service credit while continuing to be paid as active employees; the deferred amounts are invested and receive interest. The presenter stated members may choose a DROP participation period from 0 to 60 months and that the change was “cost neutral” to the city.
On the restricted-duty policy amendment, staff said the language had created inconsistent interpretations over time and the council was being asked to approve clarified text and to credit sick-bank hours for employees affected by prior inconsistencies. The council approved the letter of understanding to clarify the language and to make affected employees whole.
All three items were approved by council voice votes during the meeting. Minutes and staff materials in the packet described the DROP addition as applying to three named members eligible to retire through Dec. 2027; the meeting transcript did not list those three names.
