Number
252099
Version
SUBSTITUTE 1
Reference
Sponsor
ALD. BURGELIS
Title
Substitute resolution relating to pension cost recovery associated with reimbursable overtime and extra-duty contracts.
Analysis
This resolution directs the Department of Administration - Budget and Management Division to collaborate with the Department of Employee Relations, the Comptroller, and the City Attorney to analyze the fiscal impacts of pensionable overtime costs related to extra-duty contracts and to evaluate options for ensuring that extra-duty contracts appropriately account for pension costs.
Body
Whereas, The Police Department regularly enters into extra-duty agreements with local businesses and organizers of events requiring public safety services; and
Whereas, In order to maintain regular patrol and service levels throughout the city, extra-duty agreements are staffed with officers who volunteer to work extra hours; and
Whereas, Under the rules of the City of Milwaukee’s Employe’s Retirement System, overtime earnings from extra-duty assignments are not pensionable; and
Whereas, 2023 Wisconsin Act 12 requires that all new employees hired by the City of Milwaukee enroll in the Wisconsin Retirement System (WRS); and
Whereas, In the Wisconsin Retirement System, overtime earnings from extra-duty assignments are pensionable; and
Whereas, As increasing numbers of sworn officers participate in the Wisconsin Retirement System, overtime earnings from externally reimbursed extra-duty assignments will generate additional pensionable wages that will create long-term pension obligations for the City; now, therefore, be it
Resolved, by the Common Council of the City of Milwaukee, that the Department of Administration - Budget and Management Division is directed to work with the Department of Employee Relations, the Comptroller, and the City Attorney to analyze the fiscal impacts of externally reimbursed extra-duty contracts and report its findings to the Common Council; and, be it
Further Resolved, That the report shall include:
1. The current and projected volume of reimbursable extra-duty overtime hours and the associated pensionable wages.
2. An estimate of the short-term and long-term impacts on the City’s pension contributions resulting from pensionable extra-duty overtime.
3. A review of how other municipalities structure reimbursement for pension costs related to extra-duty or reimbursable overtime assignments.
4. Legal considerations affecting the City’s ability to recover pension costs through contract provisions or administrative fees.
5. Options for establishing a direct pension contribution supplement or administrative surcharge within reimbursable extra-duty contracts to offset the City’s long-term pension obligations.
6. Recommendations for incorporating pension cost recovery into future contracts.
;and, be it
Further Resolved, That the Department of Administration - Budget and Management Division shall report its findings to the Common Council within 120 days of the adoption of this resolution.
Requester
Drafter
LRB 181491-1
Kathleen Brengosz
4/1/26