Ocean City passes benefits changes
Original plan altered after veto
OCEAN CITY -- Town officials voted unanimously to approve two ordinances altering health benefits and the pension package for new hires.
Mayor Rick Meehan pledged to sign both into law today as emergency ordinances to allow resort officials to finalize a proposed budget for fiscal year 2012 and to begin hiring 31 employees whose wages are included in the proposed budget. Included among the hires are six new police recruits whom the council prevented from entering a police academy class in January because it wanted to wait until a new benefits package was in place.
The new health plan will affect only new hires and allow the town to maintain its former plan as-is for current employees. This facet of the council's agreement will help avoid about $800,000 the resort would have incurred in unbudgeted expenses if it had eliminated the current health plan.
The $800,000 would have come on top of the $571,000 it will cost the town in the coming fiscal year to enact the new plans. About $345,000 will come from savings in the general fund, and the council voted for the additional $126,000 to come from surplus funds originally allocated for street improvements. The plan is to pump savings acquired throughout the year back into that fund until it reaches its original figure of $601,000.
The new health plan will include a health savings account that the city will fund continuously during an employee's career. There is also a soft cap included in the plan, which says the town's liability for employee health care can rise a maximum of 3 percent annually, and the city will continue to cover its share of the plan until the employee reaches age 65 and becomes eligible for Medicare. This will eventually put more of the responsibility for health care costs on the employee's shoulders.
The pension ordinance will remain as it was before the veto. Meehan said he vetoed both because he wanted to see the two plans move forward together, not because he disagreed with the format of the new 401(k)-style pension plan.
Avoiding having to find budgeting room for the $800,000 that would've come with closing the current plan benefits the taxpayers and employees, said Councilwoman Mary Knight.
"I think if we can start saving that money, we can look into giving our employees raises, and that would be really nice," Knight said. "We can hire people now, too, and I feel very good about that."
Raises for town employees are not budgeted for 2012.
Councilman Brent Ashley said he was "more than willing" to vote for the compromised plan, since he and the rest of the council majority had the original goal to change benefits for new hires.
smuska@dmg.gannett.com
410-213-9442, ext. 14
Mayor Rick Meehan pledged to sign both into law today as emergency ordinances to allow resort officials to finalize a proposed budget for fiscal year 2012 and to begin hiring 31 employees whose wages are included in the proposed budget. Included among the hires are six new police recruits whom the council prevented from entering a police academy class in January because it wanted to wait until a new benefits package was in place.
The new health plan will affect only new hires and allow the town to maintain its former plan as-is for current employees. This facet of the council's agreement will help avoid about $800,000 the resort would have incurred in unbudgeted expenses if it had eliminated the current health plan.
The $800,000 would have come on top of the $571,000 it will cost the town in the coming fiscal year to enact the new plans. About $345,000 will come from savings in the general fund, and the council voted for the additional $126,000 to come from surplus funds originally allocated for street improvements. The plan is to pump savings acquired throughout the year back into that fund until it reaches its original figure of $601,000.
The new health plan will include a health savings account that the city will fund continuously during an employee's career. There is also a soft cap included in the plan, which says the town's liability for employee health care can rise a maximum of 3 percent annually, and the city will continue to cover its share of the plan until the employee reaches age 65 and becomes eligible for Medicare. This will eventually put more of the responsibility for health care costs on the employee's shoulders.
The pension ordinance will remain as it was before the veto. Meehan said he vetoed both because he wanted to see the two plans move forward together, not because he disagreed with the format of the new 401(k)-style pension plan.
Avoiding having to find budgeting room for the $800,000 that would've come with closing the current plan benefits the taxpayers and employees, said Councilwoman Mary Knight.
"I think if we can start saving that money, we can look into giving our employees raises, and that would be really nice," Knight said. "We can hire people now, too, and I feel very good about that."
Raises for town employees are not budgeted for 2012.
Councilman Brent Ashley said he was "more than willing" to vote for the compromised plan, since he and the rest of the council majority had the original goal to change benefits for new hires.
smuska@dmg.gannett.com
410-213-9442, ext. 14
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