The Township has taken many measures to decrease its expenses given this drastic reduction in revenue. For example, in 2018, the retiree healthcare benefits offered to elected officials and non-union employees were eliminated. The Township combined the fire and police departments to a full-service Public Safety Department. The Township’s contributions made to current employees defined contribution plans (retirement plan) were reduced from 15% to 10% of base pay, and our employees are required to pay 20% of their total cost of health insurance benefits. Retiree health insurance benefits provided in our union contracts were adjusted so that these benefits would expire upon a retiree reaching Medicare eligibility.
The most recent austerity measure announced by the Township and reported by WNEM yesterday followed suit. Not all retirement health benefits were terminated for union retirees. Rather, a stipend to purchase insurance will be provided to a retiree until the retiree is Medicare eligible. Upon reaching Medicare eligibility, the stipend will cease, as is the case for all non-union retirees and as will be the case for all active employees who retire in the future.
To assist with this transition, the Township has provided all impacted retirees with contact information for a benefits advisor who can assist the retiree in securing a personal Medicare supplemental insurance plan from the private marketplace. The Township also provided each impacted retiree $1,000 to assist with purchasing their own supplemental coverage.
