Mayor Michael R. Bloomberg today announced that a tentative contract settlement has been reached, pending ratification, with the Lieutenants' Benevolent Association (LBA). The collective bargaining agreement covering a 50-month, 16-day period from June 16, 2003 through August 31, 2007, affects approximately 1,650 Lieutenants in the New York City Police Department. Unique features of the contract include a $300 contribution from the City into an individualized Savings Incentive Plan (an off-shoot of an existing tax deferred compensation plan) for any active member who invests 1% of his or her salary into the 457 Plan.

Also, the NYPD will implement a voluntary six-month pilot of 12-hour tours for Lieutenants. The settlement, which is subject to the Union's ratification process, is consistent with the City's pattern for collective bargaining for the uniformed services and is modeled after the financial parameters contained in settlements reached with the Uniformed Firefighters Association, the Uniformed Fire Officers Association, the Uniformed Sanitationmen's Association, the Detectives Endowment Association, the Correction Officers Benevolent Association, the Assistant Deputy Wardens/Deputy Wardens Association, and most recently, the Correction Captains Association.

"Police Lieutenants are leaders in the NYPD and we are pleased to have reached this agreement with the Lieutenants' Benevolent Association," said Mayor Bloomberg. "Great things can be accomplished when the parties come to the table and devote the time and energy necessary to negotiate. The LBA worked creatively to design a favorable contract for its members. I am proud that by working together, we have forged an agreement that provides NYPD Lieutenants with a much deserved wage increase and other contractual improvements. Once again, the City of New York's commitment to attain fiscally responsible settlements has been harmonized with the Union's desire to achieve fair treatment and compensation for its members."

"The proposed contract is a win for Police Lieutenants and a win for the city as a whole," said LBA President Anthony Garvey.  "The unique provisions of this contract clearly demonstrate the value of crafting one's destiny at the bargaining table and not relying on an independent arbitrator who knows nothing about the needs of our members."

"NYPD Lieutenants are important components in the management of the nation's largest police department, and they deserve the increased compensation and security reflected in this agreement," said Commissioner Kelly.

The principal features of the settlement include:

• A 5% increase effective June 16, 2003.
  
  
• A 5% increase effective June 16, 2004.
  
  
• A 3% increase effective July 31, 2005.
  
  
• A 3.15% increase effective July 31, 2006.
  
  
• Effective July 31, 2007, the Uniform Allowance will be increased by $120.
  
  
• Effective July 31, 2007, a one-time lump sum payment of $427 per active member to the Annuity Fund.
  
  
• Effective July 31, 2007, the City will contribute $300 per year to the Savings Incentive Plan for each active member who invests at least 1% of salary per year to the 457 Plan.

A contract extension of one month and 15 days, as well as certain operational improvements, funds the first two 5% increases.  A one month and one day contract extension generates the necessary additional savings to fund the increases in the Uniform Allowance and Annuity Fund, and to provide the payment to the new Savings Incentive Plan.

The following operational improvements will occur:

• Five additional rescheduled tours for all employees and other improved flexibility in assigning employees.
  
  
• New promotees will work 13 additional appearances (i.e., workdays) during their first seven years
  
  
• All employees will work an additional 10 minutes per tour

In addition, the Police Department will conduct an innovative six-month pilot program involving Lieutenants' working 12 hour tours. Participation will be voluntary.  The efficacy of the pilot will be assessed by the Police Department, and a labor-management committee will address implementation issues as they arise.

The Mayor concluded, "I also want to thank Deputy Mayor Edward Skyler, Police Commissioner Raymond Kelly, LBA President Anthony Garvey, Labor Commissioner James F. Hanley and First Deputy Commissioner Pamela S. Silverblatt and their team, and Mark Page, Director of the Office of Management and Budget and his team for their efforts in reaching this Agreement."