County To Talk Post-Retirement Benefit Cuts For Dependents

SNOW HILL – Though no consensus was reached this week, the Worcester County Commissioners continue to discuss ways to reduce the costs of retiree benefits.

Though a motion to eliminate the cost-share for health insurance benefits for dependents of employees hired after July 1 was tabled, the commissioners are expected to reconsider the issue in the near future.

“I think these numbers are the type of numbers that are bankrupting cities and states and counties across the nation today,” Commissioner Joe Mitrecic said.

Currently, dependents of retirees with at least 15 years of county service are provided medical insurance at the same cost-share as the retired employee. That rate is 10 percent for county employees hired before July 1, 2015, and 20 percent for employees hired since then.

According to Harold Higgins, the county’s chief administrative officer, the county is behind in its benefits savings. Finance Officer Phil Thompson said the county’s annual obligation was $2.677 million for county employees and $16.132 million for Worcester County Board of Education employees.

Thompson said that while Worcester County had more saved than most jurisdictions, it was still behind where it should be.

“We’ve had to make some dramatic cuts to make the budget work,” he said.

Mitrecic said more and more companies were doing away with post-retirement benefits for dependents and in some cases even for the employees themselves. He said that though savings to the county would not be great in the near future, they would be significant in a few decades.

“I’m not thinking about 2020 I’m thinking about 2050 and 2045 about where this county’s going to be financially and what the burden to the taxpayers is going to be,” he said.

Mitrecic made a motion, seconded by Commissioner Chip Bertino, to eliminate the post retirement cost-share benefit for the dependents of employees hired after July 1. His fellow commissioners, however, said the issue merited more discussion.

Commissioner Bud Church said he didn’t disagree with Mitrecic but thought dialogue was needed.

“We need input,” he said.

Bertino pointed out that the change would affect new hires, not existing employees.

“It doesn’t impact anybody who is currently employed,” he said.

Nevertheless, the commissioners voted 5-2 in favor of Commissioner Ted Elder’s motion to table the matter.

Mitrecic pointed out there was not another meeting before July 1, which meant another date would have to be decided upon. He stressed the importance of eliminating the benefit for dependents of retirees.

“As guardians of the money in this county, we have to be responsible to our taxpayers,” he said.

Church recommended resuming discussion on the issue in September.

“I think we need just a little bit of time,” he said.

Commissioner Jim Bunting said that as president of the commission, he’d schedule the discussion in “the near future.”

About The Author: Charlene Sharpe

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Charlene Sharpe has been with The Dispatch since 2014. A graduate of Stephen Decatur High School and the University of Richmond, she spent seven years with the Delmarva Media Group before joining the team at The Dispatch.