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Brennan Introduces Changes to Future Retiree and Employee Health Benefits

Measure could save up to $2 Million annually

(Binghamton, N.Y.) Broome County Executive Patrick J. Brennan has introduced a proposal to the county legislature that could result in a savings of up to $2,000,000 annually beginning in 2012 if approved by the county legislature. The proposal aims to increase the retiree health insurance premium contribution for county employees who retire after December 31, 2011 and increase the employee health insurance premium contribution for county employees who are hired on or after January 1, 2012.
 
Under County Executive Brennan’s proposal,  
 
  1. Employees retiring from Broome County after December 31, 2011 who elect to participate in the County retiree health plan will contribute 20% of the premium or the contribution rate paid by active employees in their bargaining unit as of their date of their retirement, whichever contribution rate is greater. This means that the percentage of contribution for retirees (who retire after 12/31/11) will increase as the employee contributions increase. This is up from the flat 15% paid by existing retirees today.
  1. Employees hired on or after January 1, 2012 will not be eligible to participate in 1the County retiree health plan until they have completed twenty (20) years of full-time equivalent service with the County and have been enrolled in the County’s Health Benefits Plan for the last ten years immediately preceding their retirement. Presently employees only have to be employed by Broome County for ten years and participate in the health plan for two years.
  1. The Health premium contribution paid by management employees will be the same as the percentage paid by members of Broome County’s Civil Service Employee’s Association (CSEA) union.
  1. Effective January 1, 2013 the Health premium contribution percentage paid by part time elected officials (County Legislators and Election Commissioners) shall be fifty percent (50%) of the total health care costs (up from the current 25%). 50% is the percentage that has been paid by all other part time county employees for many years.

Broome County is presently offering a retirement incentive to reduce its employee headcount. So far about half of those eligible to retire have submitted letters of intent stating that they intend to retire by the end of 2011. The county legislature approved the retirement incentive at its June meeting.

Late last week, item 4 above drew the ire of Legislature Chairman Jerry Marinich (R – Chenango) and at least one Democratic Legislator. Brennan said, “I am trying to fix a long-standing inequity that should never have been allowed to start in the first place and should not have been allowed to continue this long. My proposal fixes it once and for all. Now all part-time county employees will be treated the same when it comes to their heath insurance costs. If I’ve irritated people on both sides of the aisle, then I guess I’m doing my job,” said Brennan. The changes proposed under item 4 above, if approved, can not take affect until the beginning of the next term of office for both Legislators and Election Commissioners. The next term of office for both groups begins January 1, 2013.
 
This proposal is expected to be considered by the Legislature’s Personnel Committee on July 13th at 5:00 P.M. and by the Legislature’s County Administration Committee on July 14th at 4:00 P.M. and by the Legislature’s Finance Committee on July 14th at 4:15 P.M. Assuming it is approved by those committees, the proposal could be voted on by the full Legislature at it’s July 21st Legislative Session at 5:00 P.M.

Posted: 7/5/2011 2:16 pm

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