(Ed.'s Note: If you are a longtime City of Brownsville employee not covered by collective bargaining like the fire and police departments, get ready to lose city support for insurance for you and your spouse. Under the city proposal to be considered today at their 5 p.m. meeting city employees will lose any city support for retirees over five years.)
Historically, the City enriched this benefit for its eligible retirees by subsidizing as much as the full cost of annual retiree medical benefits. However, a 2020 actuarial study of this Other Post Employment Benefit (OPEB) liability projects increases from an estimated $65 million in 2020 to nearly $170 million in 2045 due to the cost of medical inflation and number of eligible beneficiaries.
Project Scope and Analysis: The City proposes to phase-out this benefit incrementally over the next five-years.
The City will "grandfather" all those retired on or before September 30, 2022 with the subsidized benefit; however, effective October 1, 2022, the retiree is responsible for twenty-five percent (25 percent) of the age adjusted premium as well as all dependent coverage. This share will increase by 25 percent each year until City-paid subsidy reduces to zero dollars by October 1, 2025.
Qualified retirees preserve access to the City's health plan at their expense until age 65, upon Medicare eligibility, or upon enrollment in an alternate group health insurance program, whichever occurs first. This proposal differs than that previously proposed
1) by "grandfathering" at no additional expense to them all those retired by September 30, 2022 and
2) by lengthening the transition period through five-years.
7 comments:
The Democrat blocking progressive change is beholden to big oil. Surprised?
Joe Manchin owns millions of dollars in coal stock, founded an energy firm and Exxon lobbyists brag about their access to him. Republicans fundraise on his behalf
No sympathy here. There's always the commercial free market!
🛌
Why does the city only target non-union employees? Police and Fire should also help pay for the deficit since they have the largest number city retirees, this is a clear example of fiscal mismanagement.
This decision makes no sense in terms of saving money on the long term. Current city employees (non-union of course) will probably chose to stay working for the city until they reach 65 years of age as they wouldn't be able to afford paying the extra monies to keep their health insurance for themselves or spouses. This means that the city will continue to fund their pension plan as long as they work as well as continue to pay into their social security plan. As we get older, medical expenses increases drastically whether you are working or retired. So, where's the savings? It only means the city will incur more debt instead of savings.
@ July 20, 2021 at 7:42 AM
If you drive or ride in a car or truck or bus "SHUT UP"!
The City of Brownsville...... not a good employer. Wants to abuse the workers, peasants.
Something needs to be done to fix this problem: TIME for a strike. No City Services until they support their workers.
Or set up a protest in front of City offices until they fix this problem.
If they Mayor knew about this problem, he would help the workers.
No wonder city employees are leaving in droves to seek better employment opportunities and benefits. So, what's next? Do away with their retirement benefits? As it is, morale among the employees are at all time low, retention is out of the question for many. Way to go " Total Alignment "
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