Greensburg, police union spar in court over retirement savings plan switch

A Westmoreland County judge is deliberating whether to grant a preliminary injunction to delay Greensburg from implementing a new tax-deferred retirement savings plan for city workers.

The Fraternal Order of Police Lodge 56 contends the city violated union’s existing five-year labor contract with the city when it unilaterally moved to replace its longtime investment firm that had handled private saving accounts for former and current staffers, including police officers.

The union argues the switch from Nationwide Insurance, to One America, originally slated to go into effect Friday, Dec. 23, was unnecessary and done so outside of the collective bargaining process. The FOP’s injunction request delayed the implementation date until late January.

“The FOP was not included in this process at all, and it was not advised it was even happening,” said union attorney Charles Dangelo, during a daylong court hearing Wednesday.

The union has filed a grievance against the city, a labor process that could take months to resolve. The injunction is being sought to ensure no changes are made until the union grievance is resolved, Dangelo said.

Former Greensburg Police Chief Wally Lyons testified that he along with city administrators formulated the investment program in 1993 and that FOP members were satisfied with the status quo.

“We’ve been with Nationwide since the start and the city’s position was hands off,” Lyons said. “All the money is the city employees’, and the city pays no fees.”

The money management program is separate from the city’s pension fund and does not include contributions from the government. It oversees the investments for all city employees and officials believe the new plan will include reduced fees, Greensburg attorney Brian Gabriel said.

“It’s an optional city benefit offered to all city employees,” Gabriel said. “No one else has objected.”

Gabriel argued the plan was approved by city council in June, and the police union waited too long to object.

“This is a self-created emergency,” he said.

Westmoreland County Common Pleas Judge Harry Smail Jr. said he will take the issue under advisement and determine by next month if a preliminary injunction is warranted.