CORE COMMUNITIES IN CRISIS TASK FORCE

PERSONNEL MANAGEMENT SUBGROUP MEETING NOTES

WYNDHAM PITTSBURGH AT UNIVERSITY PLACE

AUGUST 23, 2010

I. Identification of Problem

  1. Act 111:

A. Scope of review too narrow

B. Impact on community/ability to pay not considered

C. No cost sharing

D. Too few arbitrators (3)/lack of standards

E. Lack of public recognition of costs

2. Pensions/Retirement Costs/OPEB:

A. Constitutional obstacle to changing existing retirement benefits

B. Inability to purchase certain benefits with plan assets (disability)

C. Lack of mandate for employee contributions

D. Code restrictions (no ability for hybrids)

E. Number of municipal plans

F. Spiking

G. Lack of public recognition of costs

3. ACT 205:

A. No restriction on bargaining benefits

  1. No cap on benefits despite funding level
  2. Funding available without regard to need
  3. No flexibility in actuarial standards
  4. Lack of public recognition of costs
  1. Healthcare:

A. Multitude of plans and providers

  1. No coordination of post and current benefits
  2. No coordination of post employment benefits and Medicare eligibility
  3. Heart and Lung/Worker’s comp administrative processes separate and confusing
  4. Lack of public recognition of costs

II. SOLUTIONS

1. ACT 111:

- broaden scope of review; include community impact and ability to pay

- increase number of arbitrators from current 3; alternate striking in selection

process

- share cost equally between parties

- employ “baseball” style arbitration

2. PENSIONS/RETIREMENT/OPEB

-Allow defined contribution/hybrid plans

-Outlaw spiking

-Amend constitution to allow alteration to a retiree’s benefits

-Allow freezing of benefits

-Allow transfer of risk (purchase insurance with plan assets)

-Consolidate municipal plans into one statewide plan

3. ACT 205

-Amend Act 44 to include benefit caps

-Restrict ability to bargain pension benefits via Act 111

-Amend formula to need

-Allow flexibility in actuarial standards

-Consolidate municipal plans into one statewide plan

4. HEALTHCARE

-Create one statewide pool

-Merge administrative heart and lung/workers comp administrative processes

5. IDEAS AND SUGGESTIONS FROM STAFF AND BILL

-limit arbitrator discretion to last best offer (choice of two)

-Require all negotiating and arbitration sessions to comply with Sunshine and Right to know laws

-Require arbitrators to support ability to pay with appealable documentation