A tentative agreement between the Port Authority and the union representing bus-trolley workers largely mirrors recommendations made in August by a state-appointed fact-finder.

But it's a four-year contract, instead of three, and provides fully paid, lifetime health-care benefits for a number of employees who, because of their age and years of service, were caught in the middle and would have been forced to work longer or pay their own premiums.

Information on the proposal, reached last week during negotiations in Washington, D.C., began leaking out today after Local 85, Amalgamated Transit Union, began to distribute highlights to the rank-and-file, who will meet Sunday for a ratification vote. [ Read full text ]

If Local 85 votes affirmatively, the authority board is to call a special meeting early next week to approve the new contract, retroactive to July 1, 2008.

Approval by both parties will end months of uncertainty for people who account for 240,000 rides a day and who faced a possible work stoppage.

And it means County Executive Dan Onorato is likely to release $27.7 million in drink and car rental tax funds so the authority can continue to qualify for matching money from the state. Without the county subsidy, the authority faces running out of money next month.

The tentative agreement calls for Local 85 members to incrementally increase their contibutions for health, prescription, vision and dental insurance from the current 1 percent to 3 percent of base wages, the same as non-union employees at the authority already pay.

While it also establishes 60 as the normal retirement age, or five years longer than union members can now leave with lifetime health care, anyone retiring through June 30, 2012, the end of the new contract, would still be able to leave with current benefits that are considered some of the best in the transit industry.

The agreement also calls for wage increase of 3, 2, 3 and 3 percent, respectively, for each of the four years, ulimately raising hourly pay to more than $26 an hour for bus-trolley operators and more than $30 an hour for first-level supervisors.

Neither authority Chief Executive Officer Steve Bland nor Local 85 President-Business Agent Patrick McMahon returned calls seeking comment today.