WPCNR CITY HALL CIRCUIT. By John F. Bailey. May 29, 2010: Mayor Adam Bradley contacted WPCNR Friday evening and assured WPCNR that, as he said in his remarks last Monday evening at the Common Council, he “had deep reservations” about requiring some employees and retirees to pay 15% of the cost of their health care benefits as the Common Council approved the budget-cutting step.
WPCNR reported exclusively Friday that 700 retirees (who started working for the city before July 1,1995, will begin paying $1,102 if they have an individual Empire Blue Cross /Blue Sheild plan and $2,396 if they participate in the Empire family plan effective July 1.
Bradley told WPCNR Friday evening, the administration has found two companies which may offer less coverage to the retirees and the employees who are forced to pay 15% of the medical benefits in the just-approved 2010-11 city budget, but will enable the employees and retirees who select them, to again receive their benefits without paying a share of them. Bradley said the city is looking these companies, but the availability of the plans is not to be expected before January 1, 2011.
After WPNCR reported the widespread effect of the pay 15% of benefits policy Friday afternoon, it was learned that letters to the retirees affected, who include former Mayors (including Mayor Joseph Delfino, Bradley’s predecessor), councilpersons, Commissioners, managers and appointed personnel were mailed out Friday. Previously retirees had only sketchy notions, at best, that they would be hit with $1,102 or $2,396 charges for health care.
John Callahan, city Chief of Staff explained in a written statement earlier this week, the new plan(s) that the city may offer would work in a e-mail earlier this week, before WPCNR learned the high number of retirees affected by the Council medical benefits decision Monday evening.:
“Retirees who were subject to a collective bargaining agreement (unionized workers) and who commenced work with the City prior to July 1,1995 will have an amount of up to 85% of the premium charged by the Empire Plan contributed to their health insurance premium by the City. The administration is seeking to identify insurance plans whose premiums are less than the Empire Plan’s premiums and to offer at least one such plan to the City’s retirees as an alternative to the Empire Plan. Thus, if a plan whose premium was 85% or less than the premium charged by the Empire Plan was offered by the City and was chosen by a retiree, the entire cost of that plan’s premium would be covered by the City.”
WPCNR asked if the administration had asked the police and fire unions to revise their contract to require that police and fire retirees who joined the city after July 1, 1995, pay 15% of their retirement medical benefits, Mr. Callahan and Mr. Bradley said “No, they had not.”
Bradley said the police and fire unions were only asked to have new hires to the departments pay 15% of their benefits.
This is puzzling. Since the administration had no plans ever in the next year or two to hire new police officers and firemen any time soon due to the budget constraints, it is not clear how any savings would be achieved by simply asking new employees to pay 15% of their medical benefits.
