PPD retirement upgrade goes to vote

The fate of the retirement plans of Portales Police Department employees will come to a vote before the department in January after Lt. Mark Cage recently got approval from the city to hold an election.

Employees are covered under the Public Employees Retirement Association (PERA), a state-run retirement plan.

Cage went before the Portales City Council recently to receive approval to hold a vote within the department, determining if officials will move up a level in their plan. Department employees are currently on the level 4 plan.

"At level 4, we can retire at 20 years with 60 percent of our highest three consecutive years of our salary averaged," Cage said. "Basically, three percent for each year of service."

Cage said employees currently pay 12.35 percent of their salary to be in the plan.

If employees vote to move up to level 5, a 3.95 percent increase will be taken out of their paycheck but it guarantees them an extra 10 percent in their retirement fund at 20 years of service.

"It's a big deal really," Cage said. "There are long-term benefits in this."

He added that it costs the city nothing because the city already pays the maximum required of them and the change will solely affect employees, which is why it must be brought to a vote.

Cage said although veteran officers such as himself who are closer to retirement see the value in the upgrade, he also feels younger officers will benefit greatly if they vote for the level 5 plan.

"I know they're thinking, 'what's in it for me?', but if they're forward thinking enough, they're going to want it."

Cage said he wants to ensure that officers get the best retirement plan locked in place as he anticipates PERA will make changes in the near future.

"Employees are going to pay more money (if it passes), however, if PERA ends up doing away with the higher level plans, they won't mess with plans already in place.

City Manager Tom Howell told Cage he plans to educate police department employees of how voting for level 5 will affect them before the election.

"Everybody should be aware of this," Howell said. "When you start talking about your salary, it's important to know what's going on."

Howell plans to create literature for employees.

"We'll make sure that their well-educated before they vote," Howell said.