The village of Skaneateles has postponed the effective date of a resolution that would decrease - and for many employees, completely cut - retiree health insurance benefits.
Passed by the village board in March, the resolution, which was originally supposed to go into effect Oct. 1, will now begin as of Dec. 31.
Village Mayor Robert Green said that the postponement came about following the Civil Service Employees Association's and Council 82's filing of improper practice charges with the Public Employment Relations Board.
“An administrative law judge basically told both sides to go back and see if they can't negotiate an agreement, so that is what the village is trying to do,” Green said.
On Thursday, the village selected Syracuse-based Locey & Cahill LLC as the consultant for this task.
The firm will review the village's current medical plan and benefits and collective bargaining agreements. If requested by the village, it will offer assistance in the development of strategies in labor negotiations. The fee for this work is $150 per hour, not to exceed 40 hours.
Locey & Cahill will provide the village with an overview of the various health insurance options that are available and will make recommendations as to which options are in the village's best interests, according to the firm's list of services to be provided.
This action is intended “to try to help us get our costs more in line,” Green said. “We're hoping through that process we are able to negotiate with the unions one of those plans.”
What the final outcome is “depends on what we can negotiate with the unions,” Green continued. “Obviously, the village needs to control costs.”
If they can't agree, it's “back to the administrative law judge,” he added.
The resolution, passed at the board's March 26 meeting, does away with post-retirement medical insurance benefits for nonmanagement personnel who retire after the effective date.
Those in management positions will have their retiree benefits capped at $5,000 per year as long as they are at least 55 and have a minimum of 10 years of service in a village management position.
For current retirees receiving health insurance coverage from the village, benefit caps will be $5,000 per year for management and $2,500 for nonmanagement personnel; both must have at least 15 years of service to the village.
The resolution also includes a clause stating that any active or former village employee convicted of a crime against the village would no longer be eligible to receive post-retirement medical insurance. This part will still go into effect Oct. 1, Byrne said.
Many employees were angry about the board's decision and picketed outside one of their meetings. They didn't like how management and nonmanagement employees were separated and didn't approve of the way the village had handled the situation.
Before this resolution, all village employees who retired from the New York State Retirement System received full coverage of their individual premiums and paid a percentage of their family or two-individual coverage.
David Short, president of the local unit of the CSEA, said Friday that neither he nor Council 82 local president David Wawro had been contacted by the village with an update on the postponement and hiring of a consultant.
Short expressed his disappointment with the lack of communication but said that the unions were looking to the future and hoping to move ahead with negotiations.
Retiree health insurance has never been a part of the collective bargaining process in the past, but “we're trying to negotiate in good faith,” said Village Attorney Michael Byrne.
“The village made the decision to try to address that issue in a less drastic way. I don't know what that's going to look like,” Byrne said, noting that he couldn't discuss specifics about union negotiations.
Byrne had explained in the past that the resolution was a difficult decision but that the trustees felt it necessary because of the ever-increasing costs of health insurance. Armory Associates LLC, a consultant that studied the village's retiree health insurance coverage, estimated that retiree medical insurance costs would increase from their current $107,000 annual level to about $306,000 in 10 years.
Armory also said that the actuarial present value of the total future liability for post-retirement medical insurance under the current plan would come in at more than $7 million per year.
Village Mayor Robert Green said that the postponement came about following the Civil Service Employees Association's and Council 82's filing of improper practice charges with the Public Employment Relations Board.
“An administrative law judge basically told both sides to go back and see if they can't negotiate an agreement, so that is what the village is trying to do,” Green said.
On Thursday, the village selected Syracuse-based Locey & Cahill LLC as the consultant for this task.
The firm will review the village's current medical plan and benefits and collective bargaining agreements. If requested by the village, it will offer assistance in the development of strategies in labor negotiations. The fee for this work is $150 per hour, not to exceed 40 hours.
Locey & Cahill will provide the village with an overview of the various health insurance options that are available and will make recommendations as to which options are in the village's best interests, according to the firm's list of services to be provided.
This action is intended “to try to help us get our costs more in line,” Green said. “We're hoping through that process we are able to negotiate with the unions one of those plans.”
What the final outcome is “depends on what we can negotiate with the unions,” Green continued. “Obviously, the village needs to control costs.”
If they can't agree, it's “back to the administrative law judge,” he added.
The resolution, passed at the board's March 26 meeting, does away with post-retirement medical insurance benefits for nonmanagement personnel who retire after the effective date.
Those in management positions will have their retiree benefits capped at $5,000 per year as long as they are at least 55 and have a minimum of 10 years of service in a village management position.
For current retirees receiving health insurance coverage from the village, benefit caps will be $5,000 per year for management and $2,500 for nonmanagement personnel; both must have at least 15 years of service to the village.
The resolution also includes a clause stating that any active or former village employee convicted of a crime against the village would no longer be eligible to receive post-retirement medical insurance. This part will still go into effect Oct. 1, Byrne said.
Many employees were angry about the board's decision and picketed outside one of their meetings. They didn't like how management and nonmanagement employees were separated and didn't approve of the way the village had handled the situation.
Before this resolution, all village employees who retired from the New York State Retirement System received full coverage of their individual premiums and paid a percentage of their family or two-individual coverage.
David Short, president of the local unit of the CSEA, said Friday that neither he nor Council 82 local president David Wawro had been contacted by the village with an update on the postponement and hiring of a consultant.
Short expressed his disappointment with the lack of communication but said that the unions were looking to the future and hoping to move ahead with negotiations.
Retiree health insurance has never been a part of the collective bargaining process in the past, but “we're trying to negotiate in good faith,” said Village Attorney Michael Byrne.
“The village made the decision to try to address that issue in a less drastic way. I don't know what that's going to look like,” Byrne said, noting that he couldn't discuss specifics about union negotiations.
Byrne had explained in the past that the resolution was a difficult decision but that the trustees felt it necessary because of the ever-increasing costs of health insurance. Armory Associates LLC, a consultant that studied the village's retiree health insurance coverage, estimated that retiree medical insurance costs would increase from their current $107,000 annual level to about $306,000 in 10 years.
Armory also said that the actuarial present value of the total future liability for post-retirement medical insurance under the current plan would come in at more than $7 million per year.
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