by Bradley Parsons
Staff Writer
The City’s fire chief said Wednesday that he is “very heavily considering” giving up $300,000 to keep his job.
Richard Barrett learned Wednesday that he couldn’t hold on to both. Barrett is scheduled to retire in July as part of an early retirement program that will pay him hundreds of thousands in addition to his pension. The mayor’s office had sought State approval for a plan that would have rehired 53-year-old Barrett, allowing him to keep the early retirement money, his salary and his pension. The State instead approved an alternative plan that forces Barrett to choose between the $300,000 and his job.
Barrett said he wants to talk the decision over with his family, but said he is leaning toward keeping the job he’s held since last summer.
“Of course I need to include my family in this decision. It has a major impact on them. We’re going to have a lot of discussion about it, but I’m weighing toward giving it (the retirement money) back,” said Barrett.
The proposal approved by the State Division of Retirement would allow Barrett to drop out of the Deferred Retirement Option Program and continue working as if he never enrolled. The $300,000 accumulated in his DROP account would go back into the local Police and Fire Pension Fund.
Mayor John Peyton’s original proposal would have let Barrett keep the DROP money, his job and his pension. The plan attracted opposition from some City Council members and the State because it would have paid Barrett annually a $120,000 salary and a $60,000 pension.
The mayor’s office, the Council and local pension administrators all considered State approval essential. Without it, the City would put at risk an annual $6 million State contribution to the local Police and Fire Pension Fund.
Although it will cost Barrett short term, rescinding membership in the DROP will allow him to continue working until he chooses to retire. His $120,000 annual salary will remain, as will monthly contributions to his pension account. Barrett said those increased benefits would more than make up for his DROP money, which he had planned to take in monthly installments spread over 30 years.
The mayor’s office worked with the Police and Fire Pension Fund to craft the alternative, which still requires City Council approval to amend local retirement ordinances. The Council has delayed a vote on the amendment until hearing from the State and the pension fund’s board. The board will likely make a non-binding recommendation today following a noon meeting.
If approved, the amendment would give DROP enrollees, who are appointed or elected to leadership positions in the police and fire departments, a year to decide whether to stay enrolled. Mayor John Peyton’s Policy Chief, Steve Diebenow, said the proposal would set a clear precedent.
“Instead of a solution for one person, this provides the opportunity to anyone who is appointed or elected to opt out of the DROP and keep the job,” said Diebenow.
Barrett didn’t have any input into the current proposal, said Diebenow. He said Barrett sat in on one meeting out of three between Diebenow and John Keane, the administrator of the Police and Fire Pension Fund. Diebenow said Barrett was presented with the proposal and told to make the best decision for himself.
“We told the chief, ‘This is the option we’re considering, go talk to your accountant, talk to your benefits planner and make a decision.’ The City is not doing anything special for him,” said Diebenow.
The mayor’s office had expressed earlier concerns that requiring appointees to give up their DROP money would discourage the most experienced and qualified personnel from accepting top positions. However, Diebenow said only veterans with 28 years or more experience would collect enough money in their accounts to dissuade them from taking top jobs.
A 30-year veteran himself, Barrett declined to drop out of the program when he was appointed and said three weeks ago that he might look elsewhere for a job rather than give up his DROP money. He said his mind started to change as he considered the challenges and opportunities ahead.
“I like my job. I like this mayor. He has made a major commitment to Fire/Rescue, and it excites me to think about helping him see that commitment through,” said Barrett.