The town and the Police Union have agreed to a four-year contract with no raise in the first year.
The contract runs from July 1, 2011 to June 30, 2015.
Also, all new hires after July 1, 2014, will participate in a defined-contribution pension plan rather than the current the police pension plan. The union, AFSCME AFL-CIO, Local 1745, voluntarily agreed to that change.
First Selectman Tim Herbst praised the agreement.
"I think this negotiation went extremely well. You're going to see that it was truly meeting the needs of the community," he said.
The pension change will help the town gain control of its current police pension unfunded liability while preventing new hires from exposure to town financial problems. Other new town employees are now enrolled in the defined contribution plan.
The agreement will make negotiations with other town unions easier, Herbst added.
Before the Town Council approved the contract, Councilman Michael London agreed with Herbst. "All in all, it's a really good contract," he said.
Councilman Greg Basbagill asked how the contract compared to other police unions.
"I think it compares very favorably," said Attorney Jeffrey Mogan, representing the town. "I think we remain competitive."
"This is a big step," he added.