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Here is another fact to consider. When the administration claims that the Police are not getting a raise for three years they forget to mention that each married Police officer will receive $4,000 in cash and single officer $2,000 in cash to be deposited in a Heath Saving Account that will be theirs to keep. The one year cost of this expense is approximately $600,000. Incidently this was not part of the Mayor's Fiscal 2013 budget, but I am sure he will find the 600k to fund it.

This same stipend will be given over the three years.

Now the issue I have with this is that HSA are suppose to be used with high deductable healthcare plan to pay for used services. But in fact of the matter is that Warwick contract do not call for high deductable services. Most service are covered 100% with a small co-pay.

So in effect Mayor Avedisian deployed a brilliant political plan be claming to the everyone (and mosr believed him) that there will be no raises. But in reality a married police office will receive $12,000 in defered compensation as a result of this HSA.

Any monies in the HSA is the property of that person and the HSA assets can be invested in mutual funds or other financial instruments just like any 401K account.

Don't be surprised if the Fire fighters soon will be demanding the same thing.

Budget Fact to support my claim:

2013 Police Budget Healthcare expense - $2,765,543

2013 Projected expense - $3,410,733

Could it be the $600 plus K difference is a result of the HSA cost?

From: Now the hard school choices

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