PHILADELPHIA – Mayor Kenney tonight issued the following statement in response to the ratification of a new three year contract by members of AFSCME District Council 47:

“I am gratified by the ratification of this contract by the hard working members of District Council 47, and I want to thank President Fred Wright and his entire team for their fairness and dedication to a negotiated settlement,” said Mayor Kenney. “I have long maintained that one key to the City’s long term fiscal stability is pension reform. As I said when DC33 agreed to this reform two years ago, we believe that this approach will provide needed assistance to our pension fund and also be fair to City employees at every level. I applaud the members of 47 for stepping up.”

With this agreement, the City has now achieved significant pension reform with all four of its largest unions, which keeps the City on track to achieve its goal of having the City Pension Fund 80% funded by 2030.

Under the agreement, starting January 1, 2019 current DC47 members will enter into a progressive tiered pension contribution structure based on salary, while new members will enter a stacked hybrid plan. Pension reforms were also included in the arbitration awards for Police and Firefighters.

Additionally under this agreement, DC 47 employees will receive a stepped wage increase of 3% retroactive to July 1, 2017, 2.5% effective on July 1, 2018 and 3% on July 1, 2019. This agreement also provides additional funds for the DC 47 health fund to continue to provide quality health benefits to City employees.  Employees will continue to participate in a share of the costs their health benefits throughout the term of the contract.

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