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Charlestown council directs staff to pursue removal of age-based life-insurance reduction for employees
Summary
The council authorized the town administrator to implement a proposed change eliminating an age-based reduction in term group life insurance that currently cuts coverage to $50,000 at age 70; the move was approved unanimously and would carry minimal cost unless employees remain active past 70.
The Charlestown Town Council authorized the town administrator to take all actions necessary to implement a proposed change to the town’s term group life insurance policy that would eliminate an age-based reduction in coverage.
Town Treasurer Patrick Gormley told the council active employees are currently entitled to $100,000 in term group life insurance paid by the town, but coverage under the present policy is reduced to $50,000 on reaching age 70. Gormley said the proposal would maintain $100,000 coverage for all employees regardless of age and "would not result in any additional cost to the town unless an employee remains actively employed beyond age 70." For those rare cases, he estimated an additional cost of $11.60 per month per affected employee.
Councilors voted 5 to 0 to give the town administrator authority to implement the change and to report back when the matter is ready for formal council action; Gormley and the administrator said the change would need to be reconciled with collective bargaining agreements where applicable.
