employees would also be required to continue to pay the maximum Chapter 78 percentage until the expiration of the contract if the parties negotiated a multi-year contract which
extended beyond June 30, when the fourth year of
contributions was completed. In other words, the parties could
not negotiate a lower contribution rate while the contract was
in effect. PERC held that only if the parties agreed to a one-year
contract, which would then expire on June 30, could the parties
then negotiate a different contribution level, because only then
would the fourth year of contributions have been completed.
PERC’s decision continues a disturbing trend in which the
agency has restricted the scope of negotiations in significant
areas, and taken the most anti-employee interpretations possible. In doing so, PERC has made it more difficult for the
parties to bargain over issues which have typically been considered negotiable issues in the past. While this decision
involved a local board of education and teachers, PERC will
undoubtedly apply the same principles to other public employees, including law enforcement officers.
We suggest that local PBAs that are reaching the conclusion
of the four-year progression of contributions under Chapter 78
consult with their attorneys about the best way to address
negotiations of lower contribution rates, particularly if contracts are also expiring. There are strategies which may be available to offset the impact of this decision. There also are
different ways to lower contribution rates to reduce the impact
on a public employer. But clearly, PERC has made it much
harder to negotiate lower rates. d
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