News

and Secretary/Treasurer Ralph A. Striano, presenting our donation to Ronald McDonald House in Long Branch, NJ

Current State FOP Articles

70%-75% Special Retirement Amendment added to Pension Contribution Phase in Legislation-Dubbed the "Wait and See Bill"

Edward Brannigan, President New Jersey State Fraternal Order of Police Thomas P. Canzanella, President Professional Firefighters Association of New Jersey Trenton, New Jersey/June 16, 2003.

As many members are aware, municipal employers have had what amounts to a "free ride" over the past several years when it comes to paying their PFRS pension contributions. That hiatus comes to a halt by years end unless something is done legislatively. The Governor and Legislature are attempting to put a budget together, maintain state aid and hold the line on taxes all the while battling a heft budget deficit, doing on a larger more politically dynamic scale what many of our employers are trying to do-balance the books, maintain services, and keep people working.

Senate Co-President Richard Codey has introduced legislation (Senate Bill 2586) that would allow municipalities and related local government employers the ability to phase in pension contributions over the next five (5) years at 20% increases annually until they reach 100% payment in the 5th year. This bill has previously passed the Senate Budget Committee on June 12, 2003. Prior to and immediately following that hearing Senator Codey, the State Treasurer and members of the Division of Pension staff have been meeting with all the public safety unions in order to develop a consensus on a pension improvement that meets our respective needs. For the moment, it looks like we might collectively come to terms on increasing final compensation upon retirement.

On June 16, 2003, a floor amendment was offered and passed altering S-2586 to allow for the creation of a funding mechanism providing future retirees with improved "special retirement" benefits changing the present final compensation of 65%-70% for 25-30 years of service to 70%-75% for 25-30 years of completed service. Unfortunately, somewhere along the line the improvement was made contingent on a performance objective that in order for this benefit to kick in, the pension would have to be funded at 104%. Right now the system is approximately 95% funded however, we have secured benefits in previous legislative initiatives when funding was at 85%. In the best market we ever experienced pension was just about 105.7% in 2000. Accordingly, you have to wonder if we could do better faster.

For the moment, it looks like the Administration and Legislature will have one piece of their budget puzzle while we have a promise driven by market performance and other variables all out of our control. Amended S-2586 awaits full senate consideration.

We were also unable to convince the powers that be that the Accidental and Line of Duty pensions at 66 2/3% and 70% respectively, and the 20 year Ordinary Disability (voluntary/involuntary) will be disproportionate in nature and need equal according adjustment as part and parcel of this venture. These matters will have to be addressed in the immediate future under we assume, separate legislation or amendment.

While the FOP and PFA are happy to have been involved in the discussions that let to this amendment, we are nonetheless not completely happy with the prospect of tie-barring benefits to pension performance, particularly in this economic climate. It’s a new departure and may set a significant ill-conceived precedent towards securing future pension improvements. Arguably, this bill might be better than a handshake however it is categorically not the quid pro quo you get when they reach their hands into the pension cookie jar. It was the only deal on the table and the bottom line is that they get theirs now and while we wait and see..

We remain committed to making the required adjustments and negotiating a better deal for our members in the days and weeks ahead.

East Orange Police Department:
Voted to keep the FOP as their Bargaining Agent.

On February 21, 2002 the East Orange Police Department FOP Lodge #111 voted
overwhelmingly in favor of retaining the FOP as their bargaining agent, rather than
the PBA #16. The PBA was defeated with a vote of 104 - 21 in favor of the FOP.

ANOTHER VICTORY FOR THE FOP!!!!!!!!

Essex County Correction Officers:
Ousted PBA Local #153 as their Bargaining Agent

On December 6, 2001 the Essex County Corrections voted overwhelmingly in FOP Lodge #71’s favor. The FOP routed the PBA with a 2 to 1 margin, FOP 171 to the PBA’s 80 votes.

The end of a long standing rein by the PBA was attributed to many years of BAD contract negotiations.

ANOTHER VICTORY FOR THE FOP!!!!!!!!

ESSEX COUNTY CORRECTION OFFICERS
OUSTED PBA LOCAL #153 AS THEIR
BARGAINING AGENT

On December 6, 2001 the Essex County Corrections voted overwhelmingly in FOP Lodge #71’s favor. The FOP routed the PBA with a 2 to 1 margin, FOP 171 to the PBA’s 80 votes.

The end of a long standing rein by the PBA was attributed to many years of BAD contract negotiations.

SPECIAL NOTICE

FOP NEWSFLASH:

EAST ORANGE POLICE DEPT. VOTED TO KEEP THE FOP AS THEIR BARGAINING AGENT.

On February 21, 2002 the East Orange Police Department FOP Lodge #111 voted overwhelmingly in favor of retaining the FOP as their bargaining agent, rather than the PBA #16. The PBA was defeated with a vote of 104 - 21 in favor of the FOP.

ANOTHER VICTORY FOR THE FOP!!!!!!!!

S-1833/S-189/A-1503/A-3162, a legislative priority for the New Jersey State FOP, passed in the New Jersey State Assembly on June 21, 2001. It was sponsored by Senators Inverso, Bucco, Allen and Assemblyman Heck, Bateman and Geist. It was signed into law by the Governor on August 8, 2001 as P.L. 2001c. 201. This bill allows police and firefighters who transferred to the Police and Fireman's Retirement System (PFRS) under a 1993 law to receive full benefits under PFRS for public safety service rendered prior to the transfer without having to pay the increased cost to the system of providing those benefits.

The 1993 law provided for the optional transfer from the Public Employees' Retirement System (PERS) to the PFRS of all municipal police officers and firefighters, plus certain other law enforcement officers, who were not already in PFRS. Because the employee and employer contribution rates of PFRS are higher than those of PERS (reflecting the PFRS's higher benefits), the 1993 law provided that a transferring member would receive pro-rated PFRS/PERS benefits upon retirement, unless (1) the member paid to PFRS the full cost (i.e., both the employee's and employer's share) of the accrued liability for the purchased credit, or (2) the voters of the municipality or fire district in which the transferred officer was employed approved a local referendum to adopt PFRS and assume the employer's share of any accrued liability for such transfers.

This legislation provides that a PERS member who transferred to PFRS under the 1993 law will automatically receive credit toward full benefits under PFRS for the transferred PERS service. In addition, the bill provides that a transferred member who paid the cost for the establishment of full PFRS credit will be reimbursed for that payment.

The accrued liability for the full credit toward benefits under PFRS for these members will not be a State liability. Instead, PFRS will recognize for the valuation period ending June 30,1999, an addition amount of the market value of its assets sufficient to fund the unfounded accrued liability for the full credit toward benefits under PFRS for PERS service transferred and the reimbursement of the cost of any credit purchase.

The FOP and its lobbyist worked diligently for passage of this legislation, testifying at every legislative hearing and contacting legislators to support the legislation. FOP members personally affected by the 1993 law testified at the many hearings on the unfairness and exorbitant cost of the law which made it unaffordable for these officers to retire. Their hard work resulted in passage of this legislation.

Under pressure from the National Fraternal Order of Police, the National Association of Police Organizations (NAPO) yesterday denied approving a proposed settlement agreement with Second Chance Body Armor in a lawsuit filed by NAPO regarding the use of Zylon®, a material that degrades over time, in bullet proof vests manufactured by the company. The revelation was brought to light in a hearing before Judge Thomas G. Power of the 13th Judicial Circuit Court of Michigan, who had already rejected the proposed agreement on 7 July.

National F.O.P. President Chuck Canterbury said he was astounded and outraged by NAPO's flip-flop in the case. "I don't know what kind of game NAPO is playing, but this is too serious an issue for them to first try and let the company off the hook, and then play dumb as to the nature of the settlement agreement after it's been rejected by the Court," Canterbury said. "There are real law enforcement officers out there whose lives are at stake...At a minimum, somebody over at NAPO needs to realize that there are going to be real life consequences for their haste."

During yesterday's hearing, attorneys for NAPO referenced a letter from Executive Director William Johnson written the day after the F.O.P. announced on 21 July the organization's attempt to settle in the case. In it, Johnson argues that he had written to the attorneys and "emphasized repeatedly on the phone" that NAPO had not approved of any settlement offer.

"It is clear that the F.O.P. has got to keep a closer eye on this case and the efforts of smaller police organizations to rush to judgment," Canterbury said. "The fact that NAPO apparently has lawyers out there trying to settle this case before all the facts are known is troubling at best. I certainly hope that someone takes over the helm for NAPO in this case pretty quick because, without a doubt, their lawsuit is in danger of running aground."

In an effort to halt an unfair resolution in the case, the F.O.P. appeared before the Court on 7 July and advised that the organization's primary goal was to ensure the safety of America's police officers--a goal which would be impossible to achieve if the settlement agreement was accepted by the Court. The terms of the settlement agreement reached by Second Chance and NAPO appeared to take the opposite position, and would most likely have been viewed as a major victory by the company. Judge Power agreed, noting that the proposed settlement agreement was premature and too secretive, that there were deficiencies with the settlement agreement, and a general failure to provide preliminary, and substantive, discovery in the case. In addition, the Court made it clear from the beginning that the only party to the case he had heard of was the F.O.P., and that if anyone should be courted to be on their side, it was the Fraternal Order of Police.

The Fraternal Order of Police is the largest law enforcement labor organization in the United States, with more than 318,000 members.

National President Chuck Canterbury joined President George W. Bush and congressional leaders for the signing ceremony for H.R. 218, the Law Enforcement Officers Safety Act. Metropolitan Police Officer and F.O.P. Member Olivia Wilcox, along with the legislation's strongest supporters, were also in attendance, including Sen. Patrick Leahy (second from left), Sen. Orrin Hatch (third from left), Sen. Ben Nighthorse Campbell (behind Pres. Canterbury), Rep. Randy "Duke" Cunningham (fourth from right) and Rep. Tom DeLay (second from right).

Chuck Canterbury, National President of the Grand Lodge, Fraternal Order of Police, proudly announced that President George W. Bush signed H.R. 218, the "Law Enforcement Officers' Safety Act," into law earlier today.

"Today's triumph was the result of a long, hard-fought battle," Canterbury said. "The Fraternal Order of Police has been working toward this day for over ten years. With the stroke of his pen, the President has made real the hopes of law enforcement officers across the nation."

The legislation, sponsored by Representative Randy "Duke" Cunningham (R-CA), was passed by the House in June, and then by the Senate earlier this month. It exempts qualified active and retired law enforcement officers from State and local prohibitions with respect to the carrying of concealed firearms.

Canterbury and F.O.P. Executive Director Jim Pasco met privately with the President in the Oval Office before the bill signing. "The President has truly made this country a safer place," said Canterbury after the ceremony. "By enacting this legislation, President Bush has ensured that when officers are confronted with a situation to which they must react, they have the tools necessary to ensure their own safety, and the safety of their families and the public they have been sworn to protect."

Now that the measure has been signed into law, active and retired law enforcement officers will be able to carry their firearms even when traveling outside their own jurisdictions. The bill, which was the F.O.P.'s top legislative priority, had wide, bipartisan support in both the House and Senate during its consideration in the Congress.

"There are many people to whom we owe a debt of gratitude today. Senators Orrin Hatch (R-UT), Patrick Leahy (D-VT) and Ben Nighthorse Campbell (R-CO), and Representatives Tom DeLay (R-TX) and Duke Cunningham (R-CA) were all instrumental in moving the bill through the legislative process. We are especially grateful to President Bush, a true friend to law enforcement. Without his tireless support, we would not be here today. But most importantly, we owe our thanks to all those F.O.P. members who have worked so hard to achieve this goal."

The Fraternal Order of Police is the largest law enforcement labor organization in the United States, with more than 318,000 members.

On 7 July, Judge Thomas G. Power of the 13th Judicial Circuit Court of Michigan postponed ruling on a settlement agreement reached between the National Association of Police Organizations (NAPO) and Second Chance Body Armor, noting that there were deficiencies with the settlement agreement and a general failure to provide preliminary, and substantive, discovery in the case. The proposed settlement agreement was in response to a lawsuit filed by NAPO regarding the use of Zylon®, a material that degrades over time, in bulletproof vests manufactured by Second Chance.

In an effort to halt an unfair resolution in the case, the F.O.P. appeared before the Court and advised that the organization's primary goal was to ensure the safety of America's police officers--a goal which would be impossible to achieve if the settlement agreement was accepted by the Court. The terms of the settlement agreement reached by Second Chance and NAPO appears to take the opposite position, and would most likely be viewed as a major victory by the company. Judge Power agreed, noting that the proposed settlement agreement was premature and too secretive, and set a new hearing for 9 August. In addition, the Court made it clear from the beginning that the only party to the case he had heard of was the F.O.P., and that if anyone should be courted to be on their side, it was the Fraternal Order of Police.

National President Chuck Canterbury noted that the F.O.P. has serious questions as to whether or not Second Chance invited the Michigan lawsuit in the first place, given that the State is home to the Second Chance company. "The bottom line here is officer safety--to ensure that when police officers hit the streets, they do so with the knowledge that they have safe body armor," Canterbury said. "We do not want to see any settlement which could be detrimental to law enforcement officers nationwide, or let Second Chance off the hook."

In describing their joint settlement agreement, NAPO and Second Chance argued that they had "negotiated a settlement that affords fair, reasonable and adequate relief to a national class of plaintiffs." However, in a 6 July letter to Judge Power, 28 State Attorneys General disagreed, arguing that the "proposed remedy is little more than Second Chance's original offer when the company first publicly acknowledged there was a problem with the Ultima® and Ultimax^TM vests... The States are, thus, doubtful that the remedy proposed could properly be deemed 'fair, adequate, and reasonable.'"

For President Canterbury and the Fraternal Order of Police, this settlement agreement is simply unacceptable. In light of the organization's concerns, President Canterbury wrote to Attorney General John Ashcroft to request that the Department of Justice investigate the allegation that Second Chance may have intentionally concealed a known defect in their bullet-resistant vests that were manufactured with Zylon® for law enforcement officers and to consider intervening in the Michigan case.

"There is no doubt that the settlement as proposed would have been of great benefit to Second Chance and to the plaintiff's attorneys," Canterbury said. "But it would have been of no help to those officers who have been or will be injured because of the company's defective bullet proof vests. I'm not sure whose interests NAPO is trying to protect here, but it is clearly not those of our nation's law enforcement officers."

The Fraternal Order of Police is the largest law enforcement labor organization in the United States, with more than 318,000 members.

Chuck Canterbury, National President of the Fraternal Order of Police, testified this morning before the House Subcommittee on Social Security in favor of H.R. 4391, the "Public Servant Retirement Protection Act," which would repeal the Windfall Elimination Provision (WEP) and replace it with a more equitable, individualized calculation of Social Security benefits.

"The WEP is an arbitrary and inequitable formula and it has been a top legislative priority of the F.O.P. to repeal this provision of Social Security law for some time now," said Canterbury. "Ultimately, this issue is about fairness to the State and local employees who paid for and ought to receive their full Social Security benefit. This legislation is a positive first step toward that goal."

The "Public Servant Retirement Protection Act" was introduced by Representative Kevin P. Brady (R-TX), along with Representatives E. Clay Shaw, Jr. (R-FL), Chairman of the Subcommittee on Social Security, Howard L. Berman (D-CA), Howard P. "Buck" McKeon (R-CA), Sam Johnson (R-TX), and Michael Michaud (D-ME). The legislation would repeal the Windfall Elimination Provision (WEP) and replace it with an individualized calculation of Social Security worker benefits based on an individual's entire work history. Under the legislation, Social Security benefits would be calculated as if all the worker's earnings were subject to Social Security taxes, using the standard benefit formula. To ensure Social Security benefits are based only on Social Security wages, the benefit would be multiplied by the percent of earnings subject to Social Security taxes.

"I think it is clear that Congress did not intend to reduce the benefits of hard-working Americans who chose to serve their States and communities as public employees and then went on to have second careers or worked second jobs to make ends meet," Canterbury said, referring to the WEP, which affects approximately seven (7) million public employees that are outside the Social Security system. "This legislation treats our nation's public employees much more fairly and the Fraternal Order of Police is proud to offer the measure its support."

The Fraternal Order of Police is the largest law enforcement labor organization in the United States, with more than 318,000 members.