VBT Board agrees to fix policy that violates the law regarding pensions

On Monday during a half-hour discussion at its work/study session, the Van Buren Township Board of Trustees agreed to fix a policy that was giving less pension money to some board members, in violation of the law.
Supervisor Kevin McNamara said he’s known about this discrepancy for two years and didn’t do anything about it.
“I’ve been told it’s against the law,” Supervisor McNamara said, adding that he was shocked to find that out recently.
Trustee Sherry Frazier, who is one of the three trustees who have been given about $640 less in pension contributions over a two-year period, said state law is clear and all township officials should be paid the same.
“We’ve been breaking the law and we need to correct it,” Trustee Frazier said.
She said she had asked McNamara the previous Friday to have a resolution to correct this on the Dec. 18 agenda, but it wasn’t on the agenda.
“I guess I’ll have to address this tomorrow,” she said, referring to the regular meeting which is shown on the cable channel and recorded for YouTube.
McNamara told her to go ahead and that he had gone through that with Trustee Paul White at the last meeting, concerning the purchase of winter coats for board members.
But first, Monday, the board had to go into closed-door session to discuss negotiation of the fire department union contract because an attorney, who is paid by the hour, was waiting.
After a 15-minute closed door session the board came back into open session to finish off the work/study meeting and Frazier continued voicing her concerns.
She said there is a difference in payment into the pension of 2%. She said two trustees get 10% (her and White) and two get 12%.
McNamara said in 2014 the board enacted a salary policy and published it in the official handbook. It said existing elected personnel got 12% pension contribution from the township and new elected personnel get 10%.
He said ten other salaried employees also get a lower amount. He said he talked to the attorney to see what he could do about it.
The attorney said if he wants to change the policy he has to talk to the board. That’s why it was being brought forward.
Trustee Reggie Miller said this was not the first time there has been a problem, but she found townships can’t lower the salaries of elected officials.
“You can’t move elected officials down during their terms of office,” McNamara agreed.
“I thought an elected official at this table used that to get a raise,” Frazier said.
Trustee Frazier said the official was herself and she got an attorney opinion and couldn’t get what she thought she was due.
“She’s talking about me,” Clerk Leon Wright said of Frazier’s comment. “When I wanted to be even with the treasurer. When this was done in 2014, all got 12%. When there was a turnover, some got 10%.”
He said while he signs the checks, he doesn’t see the amounts.
He said when the idea was brought up it was done legally. Then, he said, AFSCME asked why its employees are being penalized.
Wright said the elected officials shouldn’t be treated differently and they can’t be reduced. But, they can raise all of the pension contributions to 12% by board action.
“When we get checks, we don’t see the 10%,” Miller said. “It’s his fault. He knew,” she said referring to McNamara.
“I didn’t think anything about it until the attorney said it was illegal,” McNamara said, referring to township attorney Patrick McCauley.
Trustee White said the responsibilities of the four trustees are all equal under the law and they all should get the same 12% pension contribution.
“The ten salaried employees, too?” McNamara asked.
Wright said when the new trustees came in it was 10% and that when the mistake was made.
White said it is Wright’s responsibility for anything in the clerk’s department and Wright insisted he was not responsible.
“I knew about it,” McNamara said. “I didn’t know it was a big deal.” He added, retroactive pay is against the law.
Trustee Kevin Miller asked how this can be fixed and McNamara said to change the 2014 language and move everyone to 12%. He said he asked Human Resources Director Nicole Sumpter to be ready for this.
Sumpter said she has already prepared changed wording.
Frazier asked why a resolution wasn’t placed on the agenda and was told McNamara was discussing it with an attorney.
McNamara said the Michigan Township Association, which never gives written legal opinions, and the township attorney said unequal pay was illegal.
He said former Supervisor Linda Combs requested retroactive salary and had to be denied.
“I lost $700,” Frazier said.
“I lost thousands,” Miller added, referring to a different problem.
“We all got elected knowing what our salaries would be,” McNamara said.
“You’ve been quietly sitting in your seat, breaking the law,” Frazier said to McNamara.
“I had no intent,” McNamara said, explaining why they couldn’t charge him with a crime.
Miller reminded them this is a 2% payment to the pension, not salary.
Frazier said she knows people at the table who fought for higher pay. He based his five years of experience against the treasurer’s 25 years of experience, referring to Clerk Wright.
“I recommend we put it on the agenda tomorrow (Dec. 18) and resolve it as soon as possible,” Miller said.
“You just want to make yourself look like you don’t care about 2%,” Frazier said, referring to McNamara’s attitude.
“I don’t,” he replied.
“This can be easily done,” Wright said. “Revise the salary manual.”
“It’s not that much money,” McNamara said. “And, it’s locked away” until retirement. He said if he votes “no” to change the policy, he’s breaking the law.
White asked about back pay, which would be $320 a year for the trustees. He said for the supervisor, the same percentage would be $1,600.
“I have a legal opinion on that [back pay]. Can’t do that,” McNamara said. “I’ll fight doing that.”
“If we have been breaking the law for two years, let’s break the law some more,” Frazier challenged. “The supervisor knew it for two years.”
“I knew, but didn’t know it was against the law,” McNamara said.
He said the elected officials can’t get retroactive pay, but the employees could, but they won’t.
“That’s negligence about keeping it when it’s inconsistent,” White said to McNamara.
The plan was to amend the handbook to 12% matching contributions and put it on the consent agenda the next day so there would be no discussion. But, it was put on the agenda as “new business” and there was more discussion.
Finally, the board unanimously approved the changes in the employee handbook to give the 12% to elected and salaried employees.