HomeMy WebLinkAbout(2) OCTOBER 15, 2009_ -- ~ 0~'l'' /~3
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ees has been fun
_:: retired emPloY 'basis Without
gy ShertY Koonce ~~ ~ on a "paY as you g°' a coat that is
recognizing the futur to ees.. .
The News staff writer for .current emp Y
Port Arthur cit}t 'offici ward ~ Und renew acc°unting~~rn. asp ~ .
step Wednesday ~l,;uty, :; lisped . by ` ~ the. d v
another ~ . a financial Accounting Standards Bow ' god
to repo
wr~~~ unchecked will .only. con- - .~ eraments are r~e~ ~ ~cluding
tinue'to grow ;' _ ~ to the costs for retiree Mures
=City Council voted to emP Y . ~~ health. ~:_ ~o~ ~Y~'
.services of rnnsvdtant ~ ~A o . _ and those from ~ . .
d .the leg Cities not complY~ ~ would risk; Y
- Panzera an oe Both were
'- S~burger and Pri , • , . losing a favorable bond rat ,
d to help .the cstq dec~~e- a .- iOi'his is where we ~ ~ to :be
'' $g million liabilitY~.for~ current . ~".ig : no.; choice, it hag . ,
benefits :. ~," Fitzgibbons said.: - , . '
and future ;health ~-~ - city _ • address tember, the C~ty:,Coune-l
=paid fot. the benefit of retued . In ~P the ~ -way
es . to .:
employees .: ` approved , Chang are paid.
-; "~~!°1'his is a trexaendous unfu~d health' care.;-piemiu~
~ albatross on the , recom2°endation of
':liability that,~'s neck --.and its ; coB nsudltants ;_aad the -~~~ -
aromd,the city ~ League, -the Cxty`~
- ,. ;• Steve . Fitzgibbons, _. ~r M~cipal : ~ .
'huge, .:.- . : , . ~ - :,~ See'Plb' Page A9
_~~e~health utisurance benefit for - _ ~ -
Thursday, October 15, 2009 /The News '' - ~ -
- ., - . bihty requirements.. Port Arthur. , offers ~ an
~A ~ "We'll will. Dome back with ~ attractive `retirement plan
Continued from Al ~ info on what other cities do; ~' ~ -= one'that Fitzgibbons said
„^„ and what the industry scan- . is unique both among other
. ~' lord is," Underhill:said "So .municipalities and in :the
'Council ~. opted ; - to unblend far we are seeing other cities private sector. Employees
health-insurance premicuns. .making: °.their -.; retired with 24 years .service.`can
pa}d by current-and retiired .:employees pay: 100 percent ~ retire with a pension and
emsployees; and to pass a of their health 'care premi- ..health care..: _~
' higher share of the premiium ~ums "• ~ . _ .:: ' ~ If -someone goes to. work
pa~nent to retired employ- ; Fitzgibbons said the city's for the city of Port Arthur at
eel who have their _ famiilies , liabilit~r was~about five or six ,the age of 20, they can reti~+e
insured. The move will save`` .times -, largei than ~=other _ by 40. Both the retiree:, and
th@ city an estimated 27 ;per `cities in the state ? - :their spouse and children at .
cent on-the projected liabili- _ The: .legal : _fir~ ~ of home under the, age: of 25 -
ty, ~ '_ -. : - . ~~ Stasburger and Price will be caa retain health insurance- :.
Those changes were a :first .:charged with. establishing a offered by the city. ~.`_ --
step, : with ~ more to ' ce~me, `irrevocable trust for the' city - ~. Though beneficial to. the
Becky. Underhill, co-asais- to set aside money to pay for retiree, ,the ,practice - is
font city manager, said. retired health care benefits. ~ expensive far .the city. It- is ,
~'he consultant firm of Presently. the city has 194 not unusual for the city to ,
A$- Panzera was, hired to retired employees on it's fund ~ retired employee
study -other ways the city benefit payroll and about health care benefits for. up to '
could decrease the liability, 700 `active employees. -Many 40 or 50 years, Fitzgibbons i
including .changes ° in of those will retire from the said.' '
employee retirement e;ligi- city. skooncews•cont