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A judicial decision upholding MAP's position in support of two retired Southfield officers will have a far reaching positive impact for all current and future police retirees in Michigan. The State Supreme Court's recent refusal to hear the City of Southfield's appeal of a ruling in favor of Lieutenant Stanley Steinke and Lt. William Kemper means that both former officers will receive benefits as specified in Public Act 345. The employer position was that both men should be bound to terms of a contract that was implemented in the late 1980's between the city and the Southfield Command Officers Association (SCOA), which specified a multiplier of 2.8 to calculate pension amounts received by officers retiring with 25 years of service. That formula would have capped their pensions at a maximum of 70 percent (2.8 x 25) of their final average compensation levels. However, Steinke and Kemper demanded that Act 345 should take precedence, meaning they should be able to choose a pension formula based on a 2.5 percent multiplier for 25 years, plus an additional 1 percent per each additional year of active service. The difference in pension income is significant in the two officers' situations. For example, Steinke served on the department for 40 years, which means that, thanks to the lawsuit victory, he will receive a pension calculated as follows: 2.5 x 25 (years) = 62.5% + 15% (15 additional years) = 77.5% of his final average compensation. MAP Labor Attorney Dan Hoekenga argued successfully that under the state's Constitution, Act 345 takes precedence over any contract provisions and that the Constitution clearly requires that an employee is to receive the maximum pension benefits available when more than one option exists. Oakland County Circuit Judge Barry Howard ruled in favor of MAP's position and the Michigan Court of Appeals subsequently upheld his decision, prior to the State Supreme Court's denial of the city's motion for further appeal. "MAP fought this battle because the issue has such a major impact for so many people," said Labor Relations Specialist Ron Palmquist. "This decision reinforces retiring officers' ability to utilize the pension formula that provides them with the most benefit, even in cases where a different formula has been negotiated. "It should be noted that the COAM, which represents the Southfield COA, refused to take on the court fight. We did so because the principle involved is so important and so far-reaching." MAP Executive Director Fred Timpner stated that: "MAP believes very strongly that you don't turn your back on members or retirees simply because they no longer pay dues. This was a matter of doing the right thing." The 2.8 multiplier was negotiated in order to increase the benefits received by officers who served 25 years before retiring, Palmquist said. However, he explained, MAP saw the "downside" for officers who would remain on the job for extended service - a cap on benefits at 70 percent - and negotiated the ability for officers to select the formula that would provide them the greatest benefit. The city, however, claimed that this provision held only for the initial contract for which it was bargained. This position was refuted by the court. Steinke, who retired in 1994, praised MAP for helping him and Kemper recover "tens of thousands of dollars, plus interest" and restoring his maximum pension income for the future. "If it hadn't been for MAP and Dan Hoekenga, this pension income would no longer be ours," he declared. "MAP got behind us and took it all the way. We won, and so did every other police officer in Michigan." |
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