Retired town employee health care premiums up for vote [The Eagle-Tribune, North Andover, Mass.]

Nov. 18—ANDOVER — The town enacted a change in 2016 that increased the amount town employees who retired before the age of 65 paid in health-care premiums.

A Special Meeting article being voted on Monday, Nov. 20, seeks to reverse that policy and ensure retired town employees pay no more in health care premiums than employees still on the job.

Active employees kick in 30% of health insurance costs while retirees under 65 pay 50%, according to Town Manager Andrew Flanagan. Once a retiree turns 65, they pay 35%. The difference in insurance premiums between retirees under 65 and over is also notably large due to Medicare not being available.

The warrant article was petition-initiated by community activist Mike Meyers and will be voted on during a Special Town Meeting held at the Richard J. Collins Field House, Andover High School, 80 Shawsheen Road at 7 p.m.

"I would ask in your deliberations to please think a lot about the hard-working men and women who have worked for this community," said Meyers, at the Select Board Meeting when it was presented.

Town Counsel Doug Heim said the article would allow the Select Board to use compensation funds for this purpose, but wouldn't be legally binding.

"This could add a category to try and achieve that result. It's still up to the manager and the Select Board to basically determine whether you want to spend that money."

He added it would be an annual decision.

If enacted, Town Manager Andrew Flanagan said, the article would cost the town more than $1 million a year and increase its unfunded liabilities, potentially hurting the municipal bond rating.

Flanagan said the 2016 change resulted in employees who retired before the age of 65 kicking in 50% of health insurance costs by the end of four years. The change was made as part of an effort to get a handle on the town's unfunded liabilities which were predicted to balloon to $650 million in 2051.

Instead the system will be fully funded by 2047, Flanagan said. An unfunded liability is the difference between a retiree's estimated benefits and the funds set aside to pay for those benefits.

At the time the change was approved, Flanagan said, the number of retirees under 65 was about 212.

The most popular health insurance plan for employees and retirees under 65 is the Network Blue New England, according to Andover's Chief Financial Officer Patrick Lawlor.

The family version of this plan costs $703.41 per month and $260.93 for the individual plan per month for employees hired after July 1, 2017. Retirees under 65 will be chipping in $1,172.11 for the family plan and $434.79 for the individual plan per month.

More information on town employee benefits can be found here andoverma.gov/1018/Employee-Benefits

The Select Board voted unanimously to not recommend approval of the warrant article.

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