What Merger Savings?

It's beginning to look more and more like the consolidation of Indianapolis' law enforcement agencies will result in little, if any real savings. Originally, Mayor Peterson promised $9 million in savings from the merger of IPD and the Sheriff's Department. His admnistration now concedes the savings has been no more than $7.4 million. And that number could fall several million more as the Star's Brendan O'Shaughnessy reports today. Unlike IPD officers, Sheriff's employees participate in social security. The city had hoped those employees would opt out of social security like IPD employees but they chose not to opt out, meaning the city has to continue paying matching contributions of $1.3 million annually. Deputy Mayor Steve Campbell says the city anticipated that happening all along and is not the reason for the reduced savings. The city's legal counsel, Kobi Wright, also counters that the city will eventually realize savings with new hires who don't participate in social security and, therefore, will not require matching contributions from the city.

Nonetheless, current IPD officers are now complaining they are being short-changed and may sue the city. If the city were to make up for the difference in compensation to the IPD officers, it would cost the city $4 million annually. O'Shaughnessy writes:

Former IPD officers are grumbling about what they now perceive as unequal compensation because former sheriff's deputies receive a city contribution toward Social Security.

Officers enrolled in the Social Security program pay a 6.2 percent tax, with a matching amount contributed by the city. IPD officers have never been part of Social Security, unlike sheriff's deputies.

Vince Huber, past president of the city' police union and a member of its executive board, said many former IPD officers are unhappy they aren't getting an equalizing benefit, such as a 401(k) employer-match program.

"There's a lot of talk about a lawsuit," said Huber. "It's not fair to have people getting different compensation for the same job."

In a letter to council members one year ago, Huber warned that the Social Security issue would cost the city regardless of which officers end up in the program. He said council members should not be surprised when future contract talks bring up a matching benefit for former IPD officers.

Kobi Wright, the city's lead attorney, said all Indianapolis metropolitan police officers receive equal compensation.

"It's the same base salary and additional negotiated benefits in the contract," Wright said. "The city can't control a determination made by the federal government about Social Security."