The Port Authority and the union representing 43 transit police officers have agreed on a fact finder's report that will result in a one-year contract.

Members of the Transit Police Association voted Wednesday night and the authority board of directors voted yesterday, in special session, to accept a 3 percent wage increase recommended by the state-appointed fact finder, Robert C. Gifford, a State College attorney.

The agreement covers 36 patrol officers who make up one part of the bargaining unit, and seven sergeants and lieutenants who make up a separate part.

The 3 percent increase that takes effect Monday is identical to the raise a different fact finder recommended Sept. 12 that was rejected by the executive board of Local 85, Amalgamated Transit Union, representing 2,300 bus-trolley operators, mechanics, maintenance workers and other hourly personnel.

The increase will bring the pay rate for the top patrol officers to $48,723 a year, or about what drivers at the top of their pay scale currently gross before overtime, premium pay and shift differentials.

Transit police receive the same benefits as unrepresented and management personnel: They contribute 3 percent toward health care costs, do not receive coverage for life and must reach age 60 with 25 years of service to retire with pension benefits -- all issues of contention with Local 85, which continues to work under terms of the previous contract that expired June 30.

In his fact-finding report, Mr. Gifford noted the impasse between the authority and Local 85 "looms over this proceeding" and made it difficult to fashion a multiyear contract. Authority management had sought a three-year contract with the police union.

"The recommended increase is amply supported by [other] area settlements and the increase provided at SEPTA," Mr. Gifford said, referring to the Philadelphia-based transit agency.

Authority Chief Executive Officer Steve Bland characterized the new police agreement as fair and equitable.

"This shows we can reach labor agreements in a positive, productive manner," he said. "It helps us sustain a viable transit system for the future."

Authority and Local 85 negotiators were scheduled to meet again yesterday with state mediators and more meetings were said to be scheduled next week.