Patch Tour: Town Shifts Pension Costs to Non-Union Workers

Town and sanitary district employees not represented by a union will begin paying 5.8 percent toward their pensions starting in July, a move to help offset cuts in state aid and reduce personnel costs.

But unionized town police officers and firefighters will not contribute anything toward their pensions, unless they are willing to reopen their contracts which expire Dec. 31, 2012.

By unanimous voice vote Tuesday night, the Town Board increased the amount non-union employees contribute toward their pensions from 1 percent to 5.8 percent — the same amount that the stalled state budget repair bill requires for state employees.

The move is expected to save the town about $48,068 a year and the sanitary district about $13,107 a year. If police and fire fighters eventually also are required to pay the 5.8 percent, the annual savings would be about $150,000.

The town is facing cuts of about $60,000 in road aid and about $50,000 in state shared revenue.

After the meeting, Town Administrator Rick Czopp said requiring employees to pay 5.8 percent toward their pension was "the right thing to do."

Town Chairman Keith Henderson said he has wanted to gradually increase employees' health insurance and pension contributions since he first became a town elected official about 15 years ago.

"It was something that needed to get done," Henderson said.

Town Supervisor Dan Shea joined his colleagues Tuesday in voting in favor of the move, one month after Shea had raised concerns and asked the board to table the pension issue for further scrutiny.

Shea had said he was concerned that town employees had not had a raise in three years and by deducting more from their paychecks to put in their pensions, they would see a cut in take-home pay.

A handout Tuesday night showed town employees will see increases in deductions ranging from $30 to $143 per paycheck, with the largest reduction going to Czopp, the highest paid non-union town employee with a $77,630 annual salary.

The 5.8 percent requirement for state unionized workers is on hold, and not being deducted from state paychecks, while the budget repair bill remains in litigation.

Shea had argued that requiring non-union workers to begin paying more than their union-represented peers was not fair or equitable. He wondered if the inequity would prompt town public works and clerical staffs — who are not unionized — to organize a local union.

"We've got some real good employees here — why take it away from them before it becomes law?" Shea asked. "Why should we look like the bad guys and take the hit? Let the governor take the hit."

But Czopp said the governor's budget repair bill and surrounding litigation deals with unionized public workers, not non-union employees. Governments have the power to impose greater pension and health payments from non-union workers at any time, Czopp said. They just have chosen for years not to do it. 

Many municipalities pay 100 percent of both the employer and employee pension shares. Non-unionized Town of Brookfield workers pay 1 percent, while the sanitary district's five employees and police and fire personnel pay none of their pension costs.

All town employees pay 10 percent of their health insurance premiums, slightly less than the 12.6 percent the budget repair bill would impose on those government workers participating in the state's health care plan.

Shea and Town Supervisor Patrick Stroebel had asked last month whether there could be a gradual increase in pension contributions from 1 percent to 5.8 percent over a few months worth of paychecks. 

But Town Supervisors Mike Maxwell and John Schatzman said last month that shifting more pension costs from the town to its employees was preferable to laying off workers or cutting services.

Schatzman said town workers were paid well with good health care benefits and were in better financial position than many private sector workers who have seen their pay cut or lost jobs or health care.

"I believe that things have gotten so out of whack that we have to set the course back on track," Schatzman said. 

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Tuesday's meeting was the fourth stop on a weeklong Brookfield Patch community "tour," in which Patch editors and staff are meeting residents, spreading awareness of Brookfield Patch and in some cases, giving out goodies. 

Remaining events on the Patch Tour include:

• Wednesday: 7:30pm, Brookfield East orchestra concert at, 19805 W. Capitol Dr.
• Thursday: 5 - 7pm, Greater Chamber of Commerce Business After 5 event at , 16655 W. Wisconsin Ave.
• Friday: 6 - 8pm, Brookfield East Fellowship of Christian Athletes badminton tournament at East High Field House, 3305 N. Lilly Road
• Saturday, May 21: 1 - 4pm,  event at Nature Center at Brookfield East, 3305 N. Lilly Road