Update on National RCMP Contract Management Committee

The National Contract Management Committee met the week of May 6th 2013, and local government representatives from Alberta, Manitoba and British Columbia were in attendance. The following summary highlights key issues discussed at the meeting:

1. RCMP Employer Pension Contribution Costs: In our last communication, we had advised that the pension contribution rates for provinces, territories and local governments will increase to 20.23% effective April 1, 2014. This was confirmed at our meeting and the new rate for 2014 will be reflected in the 2013/14 five-year budget estimates that the RCMP will be issuing in the coming weeks. Because of a timing change in federal pension reporting, a new rate may also be set effective April 1, 2015. The new rates reflect the net of the increase in RCMP employee contribution rates between 2013 and 2015 due to the Deficit Reduction Action Plan. Employee rates will increase by approximately 32% over two years. The RCMP has not yet announced the scheduled employee rate increases for 2016 and 2017. The Province continues to press the federal government to further explore mitigation strategies to reduce the cost of the RCMP Pension Plan. Local governments will be updated as more information becomes available.

2. Basic Health Care / Medical Services Plan: RCMP members are now part of the Provincial Medical Services Plan and will be responsible for sharing the cost of MSP premium payments with the federal government. This will result in a reduction in Divisional Administration costs to local governments because health care is currently part of that cost calculation. The RCMP has quantified the financial impact of this change in the five-year budget estimates as a savings of $1,500 per employee in 13/14 and an additional savings of $500 per employee in 14/15.

3. Severance: As you are aware, the Province was not consulted about the decision to terminate RCMP members' entitlement to accumulate severance and the subsequent options that were given to members to cash out accumulated entitlements. There was considerable discussion at the meeting about the total cost that should be payable and the options for amortizing the cost.

In previous budgets, an allotment of about $1,000 per member was included in the Indirect Cost section to cover all severance costs. Severance entitlements for voluntary retirements and resignations have now been eliminated. Severance entitlements/costs will continue for dismissals, deaths, disabilities and layoffs. We continue to press for local governments to be given the option for a lump sum payout of their obligation or an amortized payout over 20 years, which would effectively mean that local governments in BC would not see a change in their annual costs for this item.

4. HR Modernization: A series of cost savings measures have either been implemented or are in the process of being implemented. These include changes in supplemental health care benefits and entitlements to clothing allowances that will result in a reduction of costs. Positions across the RCMP are also being reviewed to determine which are eligible for civilianization as a further cost reduction measure.

5. Directed Reviews: We will be working with the RCMP to establish a framework for a detailed Independent Directed Review of cadet training at Depot, recruiting and the police dog service programs to ensure that we are paying a reasonable and fair share of the related costs when we convert to paying actual costs effective April 1, 2015. We currently pay $3,500 per RCMP member for these three national programs under “Cost of Recruit Training” in the five-year budget estimates.

6. Companion Document: The national companion document is still under development; the working group met in late May and aim to have a complete draft available to the CMC in the fall 2013. This draft will form the basis for the municipal companion document that will be developed in BC by a working group under the guidance of the Local Government Contract Management Committee.

Green Timbers: Negotiations between the Province and Public Safety Canada regarding the RCMP headquarters building known as Green Timbers are still not complete. The RCMP has included a $1,200 per employee amount in the five-year budget estimates as a placeholder.

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