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Henry County authorizes return of refunded employer retirement contributions to AMR; authorizes limited settlements after executive session
Summary
Following an executive session, the commission ratified a settlement payment and approved an interlocal agreement with the Henry County Hospital District to refund employer contributions returned by TCRS to American Medical Response or its parent, and authorized the mayor to negotiate similar settlements capped at 10% of the attributable employer contributions per employee.
The Henry County Commission moved in executive session May 26 to address a dispute stemming from an erroneous Tennessee Consolidated Retirement System (TCRS) classification for certain employees who had been leased to American Medical Response, Inc. (AMR).
At the meeting’s close the commission ratified a settlement agreement with one affected employee (Bruce Herrin) and authorized payment of $1,434.40 toward that settlement, noting that the remaining settlement funds would come from AMR/Global Medical Response (GMR) and/or the Henry County Hospital District. The ratification motion was approved by roll call vote.
The commission then approved Resolution 15-5-26, authorizing an Interlocal Agreement with the Henry County Hospital District to refund employer retirement contributions that TCRS refunded to the county after determining the affected workers were ineligible for participation. Under the agreement the county will return refunded employer contributions to AMR or, at AMR's direction, to its parent company Global Medical Response. The county's action follows staff and legal review of the source of the refunded contributions and the reimbursement arrangements documented in the meeting packet.
Additionally, commissioners authorized the County Mayor to enter into settlement agreements, in a form approved by county counsel, with other affected employees, provided the county's share of any settlement payment does not exceed 10% of the employer contribution amount attributable to each settling employee. The commission also authorized the mayor to represent the county in pre‑litigation mediation and to share mediation costs, reserving the right of the commission to approve any settlement that requires the county to pay more than the stated threshold.
The commission held an executive session with attorney Frank Stockdale Carney (appearing by video conference) to discuss legal strategy and settlement negotiating parameters. The session was called under the meeting rules; commissioners voted to go into executive session by more than a two‑thirds majority before considering the settlement measures on the record.
Why it matters The action addresses a multi-party accounting and employment‑classification issue with potential legal and financial exposure. The county’s approach splits responsibility between Henry County (subject to a limited payment cap), the Henry County Hospital District and AMR/GMR (the employer of record for the leased staff), and uses an interlocal agreement to document the refund pathway for the employer contributions refunded by TCRS.
What’s next The County Mayor may negotiate additional settlements within the council’s authorization and the county will process refunds to AMR/GMR consistent with the Interlocal Agreement and the commission’s direction. The county also authorized participation in pre-litigation mediation to attempt broader resolution of outstanding disputes.
