First Selectman Michael Freda said Thursday that savings in could save the town millions of dollars because of a defined contribution plan in it that would apply to new hires.
"The savings could be in the millions," he said.
Freda also said that the contract redesigns the union's health care plan, although he provided no details. The Board of Selectmen were expected to vote on the pact Thursday night.
The wage increases over the four-year period of the contract consist of 2 percent in the first year, 2.25 percent the second, 2.7 percent in the third and 2.75 percent in the fourth.
"Across the country," said Second Selectman Timothy M. Doheny, "companies have moved away from [defined benefit] pension plans. The town can't afford the costs of the benefits they were getting."
Freda also remarked that he was "pleased that we have worked so favorably with the police department."
Earlier in the day, Lt. Kevin Glenn, who serves as spokesman for the police department, said that the union had ratified the new contract by a "vast" majority.
"The vote was a VAST majority in support of the contract," Glenn said by email. "There was substantial give-and-take agreements between the town of North Haven and the police union."
The contract applies to 46 officers. It does not apply to the chief and deputy chief of the department. Police have been working without a new contract since July 1, 2011.