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Canterbury Select Board keeps town health plan for 2025, preserves buyout with tax adjustment
Summary
The Select Board voted to keep the town’s existing employee health plan for the remainder of 2025 and to retain the existing buyout, adjusted so participating employees are made whole for taxes.
The Canterbury Select Board voted Thursday to continue the town’s current employee health insurance arrangement through the end of 2025 and to keep the existing buyout option, with an accounting change so employees receive the same take-home pay after taxes.
Board members said they chose the short-term approach to buy time for more legal and financial analysis of a broader “buyout” proposal favored by many employees. The motion, approved by voice vote, instructs staff to preserve current coverage for the rest of 2025 and to adjust the buyout payment so it is net of the tax difference employees would otherwise incur.
Mandy, a town staff member who presented the insurance options, summarized the administration’s recommendation and the legal questions raised by town counsel. Board members said options that would change the town’s benefit structure more radically could require revised tax withholding and additional employee notice and tax filings. The board agreed to keep the current plan through the year to allow time for the town to research and, if desired, implement a replacement program for 2026.
The Select Board directed staff to: document the tax treatment needed to make affected employees whole on the current buyout, correct prior quarters where necessary, continue research on a possible 2026 buyout option, and return with specifics during the regular budget process this fall.
The board recorded the decision as a formal motion and voice vote; the meeting minutes note an affirmative voice vote.
