Cape Elizabeth police officers are hoping to be clean-shaven for the holidays.

After participating in a mediation session with Town Manager Michael McGovern, Officer Mark Dorval, president of the Cape Elizabeth Police Benevolent Association, said he feels police contract negotiations will conclude soon, though for the moment “we are still growing” beards and goatees in protest over stalled contract negotiations.

“I’m confident that we can come to an agreeable solution,” said Dorval, who “can’t wait to shave” and grew a goatee in lieu of a beard to protect his interests at home. “It’s all a compromise,” he said simultaneously referring to his home life as well as the mediation and contract negotiations.

The negotiations stalled earlier this year over retirement benefits. The police union wanted to buy back into the Maine State Retirement System, with a package that would have officers eligible for retirement after 25 years of service, with two-thirds pay, regardless of their age. The union said it was concerned about retaining officers.

Dorval said that in this market, “people can shop around and they’re asking about retirement plans.” He believes this plan will make positions with the Cape police more desirable.

While McGovern had rejected that idea in the past, saying it was too expensive, he had offered to increase the town’s contribution to officers’ private retirement funds from 7 percent of their annual pay to 10 percent.

To buy the officers back into the state system would cost the town about $750,000, and the town would pay 12.6 percent of officers’ wages for the first three years, after which the town contribution would drop to 7.3 percent.

McGovern also has worried about future liability for the town. Under the officers’ present retirement plan, they absorb investment risks; if the stock market drops, they lose money. Under the state system, the town is required to provide a set amount of benefits, regardless of economic factors.

He has also argued in the past that private sector companies are moving toward employee-owned plans, which are also called “defined contribution” plans. He has asked why government would move in the opposite direction toward defined benefit plans the state system.

Though neither party would discuss the details of the mediation, conducted in September by Cape resident and mediator David Plimpton, because of a confidentiality agreement, Dorval did say that negotiations are a “give and take” and that “we need to meet in the middle … if there’s no compromise then this thing is just going to drag out.” He said that statement applies to both parties.

McGovern said this week he is still researching the state system. He said he had contacted the state, and though he would not expound on his communication with them he did say once they responded, he would be in a better position to move forward with the negotiations.

He said there had been problems with previous state data and that as soon as the state confirmed some information McGovern would meet with Dorval and the police negotiation team.

The previous mediation session involved McGovern, Police Chief Neil Williams, Dorval, union lawyer Bill McKinley, and other police union leaders, Sgt. Andrew Steindl, Detective Paul Fenton and Dispatcher Greg Tinsman.