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Administrator recommends ending county‑processed payroll deductions for third‑party insurance; staff to meet with affected employees
Summary
Administrator Sabrina said payroll deductions for seven third‑party insurance vendors (157 enrollments) create administrative burden and risk; staff proposed shifting premiums to employee payment, holding employee meetings, and considering grandfathering current participants before any policy change.
County staff told the Hampton County Council on April 20 that the county currently processes payroll deductions for seven third‑party insurance providers and that the practice is not authorized in the personnel manual.
Administrator Sabrina said the county processes payroll deductions for Aflac (21 enrollments), Colonial Life (31), The Standard (51), Washington National (40), New York Life (5), Transamerica (6) and LegalShield (3) — 157 enrollments total, with some employees holding multiple policies. She said the practice originated under a prior administration and that the county’s personnel manual does not formally authorize third‑party payroll deductions beyond health insurance.
Staff told council the current process consumes staff time (roughly 20 hours per month of HR and finance time), creates reliance on multiple vendor portals and increases the risk of missed payments during staffing transitions. For efficiency and to reduce administrative risk, staff recommended discontinuing county‑processed deductions and asked to meet with affected employees and vendors to develop an implementation plan.
Several council members urged caution. One member asked that existing participants be considered for a grandfathering arrangement and requested employee meetings so affected employees can provide input. Sabrina said premiums would not change and that staff would present options and not bring a final decision back to council until employees had been consulted.
What’s next: Staff will meet with employees and vendor representatives, explore potential single‑vendor alternatives or grandfathering arrangements, and return with a recommended approach for council consideration.
