Police won a decision Friday that would allow police to live outside the city and makes changes to their pension plan.
An arbitration panel awarded police in Philadelphia a five-year contract that changes the way the department's pension plan works.
The new contract features a two-tiered pension system. New hires would have the choice of a hybrid 401K and pension plan or the existing plan at a higher cost. The change would be a boon to the city, which has struggled with rising pension costs, said Mayor Michael Nutter.
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Police union President John McNesby was pleased that health benefits remain unchanged and new rules would allow veteran officers to live outside the city.
But the pay increases on the deal were only minimal, as officers would get no raise in the first year but three-percent raises in the second and third years. Raises in the final two years were yet to be determined.
The new contract is retroactive to July 1.