Warwick committee advances police, municipal and fire agreements with phased OPEB contributions

The Warwick City Finance Committee on Jan. 13 advanced three labor agreements for ratification by the full city council, moving contracts for the Warwick Fraternal Order of Police Lodge 7, Council 94 Local 16-51 (municipal employees) and a memorandum of agreement with Local 2748 (firefighters) to the floor without a committee recommendation.

Committee members and city officials framed the agreements as a first step toward addressing the city—s long-term retiree-health liabilities while also responding to recruitment and retention pressures in public safety and skilled municipal roles.

Bill Vicente, chief of staff to Mayor Frank Bacozzi, told the committee that the contracting parties reached a negotiated package meant to balance recruitment needs and the city—s finances. "The agreement includes modest salary increases for the hardworking members of the Warwick Police Department," Vicente said, and he noted the inclusion of employee contributions to an OPEB trust.

Why it matters: Warwick—s actuarial reports show a multi-hundred-million-dollar unfunded liability for retiree health benefits; the administration and union negotiators said a phased employee contribution will begin the prefunding of an OPEB trust while limiting immediate take-home-pay impacts. Opponents on the council said the phase-in leaves substantial money "on the table" compared with an immediate contribution and questioned whether the pace will materially improve the city—s long-term finances.

Key terms and fiscal details - Police (FOP…