Police and Fire 2022 Fringe Benefit Rate Impact
Motion 19 · Council Meeting, January 17, 2023
Summary
- Council is asked to approve one-time 2022 budget increases of $1.28 million for the Vancouver Police Department (VPD) and $3.21 million for Vancouver Fire and Rescue Services (VFRS) to cover higher-than-budgeted employee benefit costs.
- The increases are needed because several fringe benefit rates and maximum contributions were unknown when the 2022 operating budget was set, so budgets were estimated using 2021 rates; a contingency fund in General Government was held to cover any gap.
- Key cost drivers include increased Canada Pension Plan contribution rates and maximums, higher Employment Insurance maximums, and significantly higher WorkSafe BC premiums — particularly for VFRS, where the WorkSafe BC rate rose 39% (from 4.99% to 8.14%) due to increased costs from workplace injury claims.
- Municipal Pension Plan rates actually decreased for police officers and civilian staff in 2022, partially offsetting the increases from CPP, EI, and WorkSafe BC for VPD.
- The total combined fringe benefit budget impact across both departments is approximately $4.49 million, to be funded from the existing 2022 General Government contingency budget with no net new cost to the City.
- Council approval is required because the budget transfers exceed the $750,000 threshold that staff are authorized to approve independently under the City's Operating Budget Policy.