Southampton Town and its police officers’ union have ratified a four-year contract extension that’s retroactive to 2016 and awards officers 2 percent annual raises, but also requires that new hires start contributing to health insurance premiums—and all officers must agree to random drug testing for the first time.At the Town Board’s last meeting in December, Supervisor Jay Schneiderman signed the memorandum agreement with the Southampton Town Patrolman’s Benevolent Association, whose members ratified the contract on December 9. It is retroactive to December 31, 2016, when the prior contract expired.Town Board members previously had unanimously approved the contract extension, which also creates an additional two steps in the pay schedule—increasing the total amount of steps to nine—for the town’s 73 uniformed officers.The additional two steps were added to the middle of the pay scale, and officers can only climb one step annually, according to PBA President Kevin Gwinn. “I’m very happy with the new contract,” he said on Tuesday.The contract, actually the fourth extension of a contract penned in 2004, expires on December 31, 2020.Officers will receive 2 percent annual raises, a decrease from the 3 percent raises they received each year under the prior agreement.At the same time, newly hired officers will be required to contribute 15 percent toward their health insurance premiums, both during their employment and in retirement. Previously, police officers did not contribute to their health insurance plans.Russell Kratoville, the town’s management services administrator, explained the changes to the Town Board during a meeting on December 21. Mr. Kratoville also stressed that the addition of the two steps in the pay schedule will help the town financially: “That is a fairly significant savings to the town.”He explained that the introduction of the two additional steps will slow down the pace in which the department’s police officers receive secondary raises. Newly hired officers start with a base salary of $53,730, while the most senior officers—who have completed the nine steps—can earn up to $121,330 annually, he added.“Now it takes longer to get from bottom to top,” Mr. Kratoville said.In terms of health insurance changes, the town will now require that all new police officers pay 15 percent toward their health insurance premiums. A typical plan costs about $28,000, according to Mr. Kratoville, who added that the town should save $4,200 per plan, moving forward.He noted that the town intends to hire two new police officers later this month.Additionally, the contract extension requires that all officers be subject to random substance abuse testing up to four times per year by an outside and independent entity. Previously, only those officers working in special units—including the Detectives Division and Community Response Unit–were subjected to random drug testing.On any given day, up to 50 percent of the police officers on duty will be selected to submit to a drug test, officials explained. Refusal to participate will result in immediate suspension of the officer and subsequent disciplinary action, which could include outright dismissal from the department, according to the memorandum.Town Supervisor Jay Schneiderman said that he is pleased with the terms of the updated agreement.“I think it’s a stronger contract than the current one,” Mr. Schneiderman said.