Longtime Employees of Mackinaw City To Receive Medical Benefits, Village Decides
Employees who have worked for Mackinaw City for 30 years or more will be eligible for postemployment health insurance, the village council decided Thursday, January 21, at its regular council meeting. The council also recognized former Mackinaw City Police Officer Robert Desy for more than 36 years of service, changed the location of the next regular council meeting, and announced that a complete draft of the 2010 village budget will be available to the public February 1.
Belinda Mollen, chair of the finance committee, recommended the council approve guidelines developed for post-employment health insurance. Two years of health insurance for two people -- the retiree and spouse or courtordered dependent -- would be granted to employees who worked for the village a total of 30 years or more. The village would pay for 80% of insurance premiums, Mrs. Mollen said, while retirees would be responsible for the remaining 20%.
Post-employment insurance was offered at the discretion of the village in the past. No language was created that guaranteed retiring employees would receive a specific amount of insurance coverage, if any. A concrete plan was spurred by the retirement of Mr. Desy and the possibility that three other village employees with more than 30 years experience could retire.
During a November 23 work session, council members grappled with defining a suitable postemployment insurance plan. Many suggested a sliding scale, where an employee with 30 years of experience would receive 95% health coverage if they retired as soon as the plan was passed. The amount would "slide" to 80% if they waited one year, and 50% if they waited two years.
That idea was dropped, Mrs. Mollen said, because the subcommittee decided a sliding scale would give longtime employees the impression the village was attempting to force them to retire.
"Our intent is to prepare those who are close to retirement" and not to force them out, she said.
Offering payment for a percentage of health coverage was considered, as well as a static dollar amount. A percentage was agreed upon, she said, as it gives potential retirees a better idea on what to plan for. If a specific dollar amount was set and insurance prices skyrocketed, employees may not be able to afford health insurance then, she said.
The subcommittee arrived at 80% by considering the cost of insurance now and how it could potentially increase in the future.
"The most difficult part was not being able to pay 100%," Mrs. Mollen said. Village Manager Jeff Lawson said two-person insurance will cost the village about $12,000 per year. Three employees are eligible for insurance, while the next ones will not be for 12 to 15 years.
Village employees with less than 30 years are not entirely out in the cold concerning health insurance. Employees who have banked 500 hours of sick time can save additional sick time to pay for insurance, Mr. Lawson said. It would take about eight years to reach the 500-hour mark if employees used their time sparingly, he added.
The council unanimously approved the the retirement plan.
"I believe this is a move in the right direction. I think it should have been more, but I agree with the work done so far," Village President Jeff Hingston.
2010 Budget Draft Availability
Council members received a partial draft of the 2010 village budget during the meeting. Mr. Lawson said the finance committee would meet Thursday, January 28, to hash out the remainder of the budget. A complete draft will be available to the public Monday, February 1. Copies can be examined at the village chambers, on the village Web site, or at the Mackinaw Area Public Library. A public hearing for comment on the drafted budget will be Thursday, February 4, at 7 p.m. before the regular council meeting.
February 4 Council Meeting
Location Changed
The next council meeting will be at the Mackinaw City Recreation Center's downstairs conference room. The change will accommodate remodeling of the clerk and treasurer's office.
Open Meetings Act Training
A training session on the open meetings act will be Friday, February 19, from 10 a.m. to 2 p.m. at the Recreation Center. The session will be conducted by the Michigan Municipal League and is open to the public. Lunch will also be served. Those interested in attending should contact Leigh Ann at the village hall by Friday, February 12.
Desy Honored for Service
The Mackinaw City Village Council honored Mr. Desy, who recently retired, for his years of service as a Mackinaw City police officer. Mr. Desy worked for the Mackinaw City Police Department since 1973.
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