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	The Ypsilanti Courier A Heritage Newspaper Weekly Publication

Labor contracts OK'd by Council

Concessions made in pension and health care plans

By Christine Laughren, Staff Writer

PUBLISHED: March 20, 2008

The city of Ypsilanti is hoping to save approximately $150,000 with the approval of two new labor contracts.

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Changes in health care and pension plans for the American Federation of State, County and Municipal Employees as well as the Command Officers Association of Michigan were the focus of the new labor contracts.

Both contracts were approved by the City Council March 4.

Assistant City Manager April McGrath said she hopes the concessions made by AFSCME and COAM create savings for the city.

McGrath estimates a savings of $41,000 with the new two-year COAM contract and a $116,000 savings with the three-year AFSCME contract.

"We increased their co-pay for an office visit and that's where our biggest savings are coming from," McGrath said.

Starting July 1, office visits, which use to have a $5 co-pay, will be set at $30. McGrath said the city would contribute $250 to a Flexible Spending Account, that an employee can add additional funds to.

The new contracts will also offer the opportunity to choose between a $500/$1,000 deductible plan, or a 1 percent base salary plan.

Readjustments also were made to the retiree health plan for new hires.

Retirees with less than 20 years of service will have only half of their premium covered. The city intends to pay the entire premium for retirees with more than 20 years of service.

Under the new plan no spousal contributions will be provided.

McGrath said the city still has two more contracts to resolve with the Police Officers Association of Michigan and the Ypsilanti Firefighters Association.

"We would like to make the same types of changes with those contracts aw well," McGrath said.

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