Reform 4.9: Special Pays
Explore Changing Pensionable Status of Special Pays. Other Information:
To enhance the freeze and/or reduction in “pensionable pay,” and perhaps achieve even better savings than represented in the
bar graph above, the City can also seek to negotiate the “pensionable” status of a number of “specialty pays.” Our office
has identified at least $13 million in special pays that are currently considered pensionable that may be legal candidates
for conversion to “non-pensionable” status in the coming year. In these cases, the City may have an opportunity to reduce
pensionable payroll (thus achieving actuarial savings long term in the pension system.) Our office has inquired as to the
legal ability of the City to pursue such a strategy, and it is our understanding that the majority of special pays can be
either eliminated or restructured in such a way as to reduce the number that have “pensionable” status. The Roadmap for Reform
calls on the City to explore the potential for pensionable status reform of special pays, and we recommend the city labor
negotiating team tackle at least 10 special pays prior to commencement of FY 2012, including all Bilingual Pays (Excluding
Police), Hose Repair Pay, Ladder Repair Pay, and Dispatch Cert Pay. (NOTE: For a more exhaustive discussion on special pays,
see Commitment 5: Reform City Salaries and Labor Contracts.)
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