New committee aims to save on health, pension
By Bill Kirk, The Eagle-Tribune, North Andover, Mass. | |
McClatchy-Tribune Information Services |
In a problem estimated to cost current and future taxpayers hundreds of millions of dollars over the next 30 years, the committee will first identify what it wants to achieve, then come up with a list of options on how to get there.
"The essence is to gather information about health insurance and the options that might be considered to help control benefit costs,"
During a presentation in early June, a representative of
It was an issue raised at Town Meeting as some felt that the town wasn't doing enough to solve the problem -- either now or in the long run.
During a
"There are two ways to reduce this liability," School Committee member
Stumpf agreed, somewhat, saying, "We need employees' support and help. They are our most important asset."
"If the unions feel like the whole town is bearing down on this, they might feel more pressure," he said. "The unions don't have an incentive to save the town money."
Selectman
The need for action, however, didn't.
The so-called OPEB Committee has been appointed and is made up of two members of the
Whatever plan or set of proposals the group comes up with will most likely build on the work done over the last year or so by Town Manager
Stapczynski came up with a list of items to reduce the liability, only one of which has been implemented -- switching the roughly 400 retired teachers out of a state-sponsored retiree health plan and into the one run by the town, saving money initially and over the long term.
Other measures Stapczynski had sought included working with the state Legislature to support passage of provisions changing eligibility for benefits, negotiating with employees to reduce the overall cost of health insurance, convincing the Retirement Board to change the service credit for part-time employees, and working with town and school departments to insure that any discussion of adding employees to the payroll would include a review of the long-term cost of their retiree health and pension benefits.
Stapczynski approached the Retirement Board about changing its policy of giving even part-time employees lifetime health benefits, but the board rejected his request.
State legislation has been proposed to change eligibility benefits for municipal workers, but that legislation was never approved.
Negotiations with all of the town's unions, except for teachers who just approved a three-year contract, are underway. Town officials are urging negotiators to get tough on the unions to try to get some concessions that would bring down the long-term cost of retiree health benefits.
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