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Council asks legal to review health-benefit waiver practice after members flag potential overpayments
Summary
Council directed the township attorney to review whether health-benefit waiver payouts (some described as 50% of savings) comply with post-2010 statutory caps and to provide a pre/post-2010 breakdown; administration agreed to provide data and counsel's opinion.
Council members pressed administration about long-standing health-benefit waiver payouts to employees and asked whether the township’s practice matches the 2010 changes to state law. Councilwoman Rudin said the payouts appeared to be costing roughly $500,000 a year and asked whether employees hired after 2010 are receiving more than the $5,000 cap described in statute.
"This is a $500,000 spending going forward," Rudin said. "If it is not contractually required, I would like legal to look into whether or not employees who were hired before 2010 are entitled to larger health-benefit waivers than those hired after 2010." Administration said it will provide a breakdown of pre-2010 and post-2010 waiver recipients and dollar amounts and asked labor counsel to confirm whether the town is applying the 2010 rules correctly. A motion to refer the question to legal passed by roll call vote.
Finance said the township has a mix of legacy and post-2010 employees and that the waiver practice has been applied by date of hire in the administration’s experience. Council asked for a legal opinion and the dollar-and-count breakouts before final budget adoption.
