City of Peru Seal

Peru, IN – A budgeting error with the amount the city contributes to PERF (Public Employee Retirement Fund) for public safety employees will result in the city not filling a vacant PPD Officer position and a soon to be vacant Firefighter position in 2019 to make up for a shortfall in the 2019 city budget.

According to Peru Mayor Gabriel Greer, the shortfall is a result of the new pay matrix negotiated between the City and the Police and Fire Departments this year. This matrix made some changes to longevity pay.

Longevity pay is a bonus amount based on the length of their employment with the city. The longer they are employed, the larger the bonus. The purpose of longevity pay is to incentivize employees to stay with the city longer.

Under the new plan, the longevity pay is capped at twenty years of service. Officers make less at the beginning of their service and more at the end to encourage longevity.