Posts Tagged CFD chiefs in exempt ranks balk at pension rules

Chicago Fire Department news (more)

Excerpts from the ChicagoSunTimes.com:

The Chicago City Council’s most powerful black alderman is demanding changes in state pension laws to remove a major impediment to diversifying the Chicago Fire Department’s overwhelmingly white brass.

Fourteen of the fire department’s 61 exempt-rank jobs — 23 percent — are vacant. The 47 bosses who remain are 78.7 percent white, 12.7 percent black, and 8.5 percent Hispanic.

Fire officials must retire at age 63. But members of the exempt ranks must pay for their own health insurance until they hit 65. They also lose pay perks, including vacation time, overtime and supplemental pay. In addition, the state pension code doesn’t allow exempt fire officers to earn pension benefits based on their current salary. Instead, their pension benefits are based on the lower salary of their most recent union-covered job. All of that can cost as much as $25,000-a-year.

In mid-June, thirty-two members of the Chicago Fire Department’s exempt ranks returned to their career service ranks, but continued to act up in the exempt positions from which they resigned. That made them eligible for overtime, holiday pay, duty availability, Hazmat and other forms of supplemental and specialty pay afforded to members of the rank-and-file.

The fire officials are seeking pension changes, expanded health insurance benefits and pay raises, but have, so far, been unable to convince Mayor Rahm Emanuel. Sources said the mayor discontinued the longstanding practice of boosting the pay of exempt-rank members in response to union contracts that increased pay for the rank-and-file.

The salary and specialty pay of lower-ranking union members meets and, in some cases, exceeds, their commanders. As a result, for example, battalion chiefs are reluctant to accept promotion to deputy district chief because it will cost them so much money.

The mayor’s office has argued that the problem can be solved, only with bill that would allow exempt fire employees to earn a pension based on the pay for their current jobs.

In 1973, a federal class-action lawsuit accused the Chicago Fire Department of discriminatory hiring and promotional practices. At the time, only 4 percent of Chicago’s 5,000 firefighters were black. The lawsuit resulted in a four-year freeze on hiring and promotions and a federal consent decree mandating minority hiring. Between 1977 and 1979, the number of black firefighters increased from 150 to roughly 400.

Under Emanuel, Chicago resolved a bitter legal battle the mayor inherited from former Mayor Richard M. Daley, stemming from the city’s discriminatory handling of a 1995 firefighters entrance exam. The city agreed to hire 111 bypassed African-American firefighters and borrow the $78.4 million needed to compensate nearly 6,000 African-Americans who never got that chance.

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Chicago Fire Department news (more)

Excerpts from the ChicagoSunTimes.com:

Thirty-two members of the Chicago Fire Department’s top brass resigned their exempt positions Monday and returned to the rank-and-file in a fight over pay and benefits that will cost taxpayers hundreds of thousands of dollars.

The chiefs will return to their career service ranks of battalion chief and, in one case, paramedic field chief, but continue to act up in their exempt positions. That means they will now be eligible for overtime, holiday pay, duty availability, haz mat and other forms of supplemental and specialty pay afforded to members of the rank-and-file.

The 32 who resigned en masse effective at 8 a.m. Monday represent more than half of the chiefs on the fire suppression side of the CFD and just one of roughly a dozen bosses overseeing EMS.

The highest-ranking member is First Deputy Fire Commissioner Richard Ford II. Others include Mark Nielsen, deputy commissioner of the Fire Department’s Bureau of Operations, Michael Callahan, who oversees logistics, and Don Hroma, district chief of training.

The fire chiefs are seeking pension changes, expanded health insurance benefits and pay raises … which city officials say would require a change in the state pension code.

Fire officials must retire at age 63. But exempt officials must pay for their own health insurance until they hit 65. They also lose pay perks, including vacation time, when they become exempt staff members.

In addition, the state pension code doesn’t allow exempt fire officers to earn pension benefits based on their current salary. Instead, their pension benefits are based on the lower salary of their most recent union-covered job. That can result in a loss of thousands of dollars in pay each year. 

Pending state legislation known as a “brass bill” would allow exempt fire employees to earn a pension based on the pay for their current jobs. Many exempt officers are nearing retirement age and have signed a letter to the city warning they may return to the rank of battalion chief to improve their pensions and health insurance benefits before they leave the department.

Some rank-and-file members questioned why Mayor Emanuel didn’t just let the bosses quit and replace them instead of allowing them to return to their career service ranks in an arrangement with the potential to cost Chicago taxpayers a fortune. 

All 32 are closing in on the mandatory retirement age of 63. They have to self-demote two-to-four years before they retire to rebuild their pension before turning 63,” a source said.

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Chicago Fire Department news

Excerpts from the ChicagoSunTimes.com:

Dozens of Chicago Fire Department chiefs have warned that they’re prepared to resign their exempt positions and return to the rank-and-file in a squabble over pay and benefits — creating uncertainty over how the city would fill such a leadership vacuum.

The fire officials are seeking pension changes, expanded health insurance benefits and pay raises — and have been unable to persuade Mayor Rahm Emanuel and Fire Commissioner Jose Santiago to sweeten the pot for them.

But city officials say that would require a change in the state pension code.

Fire officials must retire at age 63. But exempt officials — non-union, senior staff — must pay for their own health insurance until they hit 65. Exempt fire officials also lose pay perks, including vacation time, when they become exempt staff members.

In addition, the state pension code doesn’t allow exempt fire officers to earn pension benefits based on their current salary. Instead, their pension benefits are based on the lower salary of their most recent union-covered job.

All of that can result in a loss of thousands of dollars in pay each year for exempts — sometimes $20,000 or more, sources say.

Pending state legislation would allow exempt fire employees to earn a pension based on the pay for their current jobs. Many exempt officers are nearing retirement age and have signed a letter to the city warning they may return to the rank of battalion chief to improve their pensions and health insurance benefits before they leave the department.

thanks Dan

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