Retiree benefits cut from budget
Published 12:00 am Wednesday, January 12, 2005
The Selma City Council had a life or death decision to make in Monday night’s meeting, at least in a manner of speaking.
Former City employee Mike Cutler spoke to the council about reconsidering the plan to cut half of the insurance benefits for retired employees, not yet 65-years-old.
The plan would save the city roughly $60,000.
Cutler, speaking on behalf of a group of retired employees, presented a plan in which instead of cutting the benefits, the city cut life insurance benefits for current city employees.
The savings would be roughly equal, he said, but cutting the health insurance would be far worse.
“To our knowledge, there’s only been one person that benefited from the (life) insurance plan for active employees,” Cutler said. “What we’re looking ing at, everybody that retires would benefit from this. This is vastly affecting the current employees because they were hired with the understanding that when you retire, this is going to be one of your benefits.”
Councilman Sam Randolph asked Cutler if he would prefer the money be cut from agencies, like the library.
“We did at least look into another area, an avenue that can be addressed,” Cutler said. “At least we’re looking a little farther and a little deeper to try and help.”
Selma Mayor James Perkins Jr. noted the rapidly increasing rates have changed things since 1988, when the benefit was extended.
“When the city first went into this agreement, the premium was $90,” Perkins said. “Now, it’s $230.
We just can’t afford to do it.”
Councilman Cecil Williamson asked if the city was entering into an agreement with the retirees that the plan would not change any further. Perkins replied that the U.S. government could make no such promises and neither can the state.
“At this point, we’re trying to have our cake and eat it, too,” he said.
Cutler responded by saying that the negotiations in 1988 ended when the city employees agreed to accept the insurance benefits in lieu of raises.
“We’re only asking the council to look hard and deep,” Cutler said. “We’re talking about $60,000 that was promised to dedicated employees who took their jobs seriously.”
Cutler said employees should be allowed to decide which of the benefits they would rather have.
“If the employees say they would rather have the life insurance, then that’s what should be done,” Cutler said. “If it takes a general consensus, we ask that you look at it.”
Later, during the budget portion of the meeting, the proposal to cut the health insurance was passed as part of the overall budget in a 6-3 vote.
“The issue on the retiree benefits, I’m going to take a closer look at that,” Perkins said after the meeting. “It concerns me and it has always concerned me.
I’m glad that we got past it and that we went ahead. If there is anyway possible to avoid it we will. If there is not a way possible to avoid it we won’t. It’s just a function of trying to do the best we can with what we have.”