Pa. City Could Lose 54 Firefighters This Year

Allentown is bracing for another mass exodus of public servants, this time firefighters who want to cash in on lucrative pension provisions in their contract before it expires.

Six years ago, it happened with police when more than 80 officers left with generous retirement benefits under a now-expired contract, forcing the city to rebuild the department and leaving taxpayers on the hook for skyrocketing pension costs.

Now, it may be the fire department's turn. Fifty-four firefighters -- more than a third of the department -- are eligible to retire with higher pensions than they are likely to receive under the next contract, which the mayor vows will be stingier on retirement benefits.

Police officials acknowledge the department is still recovering from the loss of experienced investigators. If many firefighters retire, that department could find itself in a similar situation.

City officials believe public safety will not be compromised, but the exodus would strain the department's already underfunded pension account and force administrators to pay overtime to fill shifts while training recruits.

But renewing the current firefighters contract, particularly because its pension calculation includes overtime earnings, is more dangerous, city officials say.

"That's led to millions in overtime and pushed up pensions dramatically," Mayor Ed Pawlowski said. "We'll bear the cost of this for decades."

Fire union President John Stribula said the local chapter of the International Association of Firefighters shouldn't have to pass up a deal they made fairly six years ago with Pawlowski's predecessor, Roy C. Afflerbach.

"The city is creating a 'run on the bank' scenario," he said. "Firefighters love their job, and if not for the uncertainty of the contract, they would stay on."

The pension calculation is one of several issues in contract talks. Both city and union leaders, who refused to discuss specifics, are scheduled to present their case in binding arbitration next month.

Fifteen firefighters have already retired in the last 12 months, guaranteeing that their overtime earnings will be calculated into pension payouts, as well as base pay, holiday pay, shift differential and longevity, fire Chief Robert Scheirer said.

In the last three years, those factors have pushed pensions higher than base salaries for 13 of 35 retirees, Scheirer said. The base salaries range from roughly $60,000 to $70,000, according to rank, and most firefighters retire at about 70 percent of their calculated total pay.

The city has also vowed to fight an early retirement clause that allows firefighters with at least 16 years of service to "purchase" additional service to get a higher pension, and seek changes in the sick day policy and minimum staffing requirements.

In the last year and a half, Stribula said, the union's proposals have been roundly rejected, including one made publicly last fall that would have frozen the pension payout of firefighters eligible to retire, but allowed them to continue working. Stribula said that and some other concessions would have totaled $1 million.

To keep overtime under control, the city could have hired more firefighters, he said.

"We all need to be cognizant of limited resources, but I don't feel like all the mistakes made by this administration should be borne by the firefighters," he said.

The department employs 141 firefighters with six finishing the fire academy.

Although budgeted to hire four more this year, Scheirer said he hoped negotiations to retain current employees would prove fruitful and the department wouldn't have to bring on mass replacements.

He said that while the fire department doesn't know how many will step down before January, even if it's significant, the residents won't see fire protection drop.

"We have enough manpower without guys becoming overly exhausted to still perform our jobs to the best of our ability and protect the city as they are accustomed," he said.

The department plans to hold two simultaneous fire academies starting in February to put new recruits through 18 weeks of training. About 60 of 90 hopefuls have passed preliminary tests so far.

Under the contract, at least 30 firefighters have to staff the city's four platoons daily. If many retire, the department would rely on overtime to meet staffing requirements, Scheirer said. The department has a policy that bans firefighters from working more than 48 continuous hours.

The problem, Stribula said, will be replacing the extensive amount of institutional knowledge.

"This will put a considerable strain on all facets of the Allentown fire department operationally, pension-wise and in experience and expertise," the union chief said.

That's what happened in the police department in 2005 when veteran officers were replaced with younger and less experienced cops. At a candidates forum last week, Lehigh County's highest law enforcement official, District Attorney James Martin, said the retirements "decimated" the criminal investigations division.

It's taken five years but the police are slowly building back their numbers to where they were before the mass retirements, police Chief Roger MacLean told City Council this month. The police department expects to employ 206 officers this year.

If many firefighters step down, the biggest impact to the city might not be in the quality of fire protection, but the effect on the already burdened pension fund. At 68 percent funded, it's listed as "moderately distressed" by the state Public Employee Retirement Commission.

Since 2005, the city's annual pension costs have risen from $6.5 million to a projected $14 million next year, city Finance Director Gary Strathearn said. In 2015, he expects to see contributions exceed $20 million.

The uncertainty over retirements has also made the city's contribution to the fire pension fund difficult to pin down, although it's due in the city's Nov. 2 preliminary budget.

The contribution is built on an actuarial study that includes hundreds of assumptions, such as when employees will retire and how much they will receive in pension payments. The city has delayed the study on firefighters in order to get a better picture of the department's future.

An arbitrator will decide the outcome of the 2012 contract after hearing both sides present their cases Nov. 10 and 11.

McClatchy-Tribune News Service