The township council suspended a new insurance contribution program for non-union employees in Evesham in the spirit of fairness.
Mayor Randy Brown suspended the ordinance to ensure that the non-union employees currently pay the same health insurance benefit costs as their union brethren.
In December, members of the township council unanimously agreed to have all township employees pay between 20 and 30 percent of their health benefit costs, which was supposed to start on Jan. 1.
Brown said the council did not envision union employees still being without contracts in the township.
The township decided to require employees in the state’s family health insurance plan to pay 30 percent — approximately $432 a month — of their health care premiums. An employee in the single plus plan will pay 20 percent — or $114 a month — of their health care premiums.
Currently employees only pay 1.5 percent of their gross salary to their health care plan.
However, Brown reported the union employees aren’t yet subject to the new insurance costs because they are still without contracts. Without contracts, Brown said they cannot legally be subjected to the new insurance costs.
There are 57 full-time union employees who are still paying just 1.5 percent for their health care premiums, Brown said. This does not include Evesham Township police officers, as they are currently under contract.
“I’m stunned that we’re currently 15 months without contracts for our union employees,” Brown said.
The ordinance was suspended so 30 non-union employees — who all have contracts — do not have to contribute at the new rate for their health care premiums.
The ordinance will be suspended for the next 120 days or until new contracts can be agreed upon with union employees.
In 2011, Gov. Christie signed a bill that required all state employees to pay between 3 to 35 percent for their health care benefits.
In other township news:
The township council appointed three commissioners and a secretary to serve its new self-insurance fund.
William Cromie, Thomas Shanahan and Diana DiCicco will serve as insurance fund commissioners with two-year terms. Carmella Bonfrisco will be appointed secretary of the fund.
Brown said the new self-insurance program would begin on March 1.
The township will take all of the money that it currently pays for health insurance premiums and put it into a large employee pool. The township will hire a third party company to manage the pool of insurance premium money. The way the program would work is that an employee would put in a claim for a health cause and it would be taken out of the employee pool.
The township would cover the insurance premium costs until the employee reaches a certain threshold and then the insurance policy would begin for the employee. It’s basically as if the township is creating its own insurance company.
