Retiree health care costs will rise following BOA vote

On June 3, 2009, in Uncategorized, by The News Staff

Somerville
City Solicitor John Gannon at the May 28 Board of Aldermen meeting,
explaining that rescinding a 1979 ordinance would give “intellectual
honesty” to Mayor Joseph Curtatone's authorizing decreased city
contributions to retirees' health care premiums.

By Tom Nash

Facing
a possible $13 million budget shortfall in the upcoming fiscal year,
Mayor Joseph Curtatone gave the Board of Aldermen two choices at its
May 28 meeting: rescind an illegal 1979 ordinance limiting the city's
ability to raise insurance premiums or force him to issue pink slips to
city employees the next day.

An overflow crowd, mostly senior
citizens, attended the meeting to hear what was expected to be a vote
on whether retired employees would face increased health insurance
payments. Instead, they watched as the Board learned their approval
wasn't required and that only a "housekeeping amendment" stood in the
way of Curtatone increasing the payments from 10 to 25 percent for most
retirees starting July 1.

The day before the meeting, local
media outlets published an editorial by Curtatone stressing the need
for the Board's approval of his new plan.

"I understand that
this is a hard vote," he wrote. "We can all agree that dealing with
this crisis will require everyone to make some sacrifices … But when
that spirit of shared sacrifice is extended to our retirees, it's not
surprising that some aldermen are reluctant to make the call."

The
Board learned Thursday from City Solicitor John Gannon that after
speaking with state officials Wednesday he learned a vote was not
needed – the power to change the rates lies with the Mayor. The only
thing standing in the way of Curtatone raising the contribution for
retired city employees from 10 to 25 percent was a 1979 ordinance that
left the city open to lawsuits if it remained on the books.

Responding
to the Board's reluctance to put their indirect stamp of approval on
the rate increase, both Gannon and Curtatone warned the city could be
sued if the law remained.

"I should note strenuously that this
is just a housekeeping amendment," Gannon said. "The requested action
would bring intellectual honesty to the order."

"You leave
ourselves quite exposed if we don't fix it, and that's the bottom
line," Curtatone added. "Whether you agree on this or not, we're
exposed either way."

While acknowledging the vote's necessity, several Aldermen criticized the Mayor's administration for keeping them in the dark.

"(Health
care) is a problem that's been ignored for a long time,"
Alderman-at-Large Bruce Desmond said of the impending rate increase.
"It appears they're taking away the ability for the Board to make this
decision."

"I am a little disappointed we didn't know about this
before," Ward 3 Alderman Tom Taylor said. "It would've saved a lot of
heartache and grief."

Citing the need to discuss the
possibilities of litigation being filed against the city, the Board
voted to discuss the issues in executive session. The audience waited
as the Aldermen left the room and discussed the issue behind closed
doors for an hour.

Carl Stauffer, a retired Somerville High
School teacher, explained while waiting for their return that even a
slight increase could push some retirees over the edge.

"The (retirees) who have been out 20 years – for someone making $1,000 a month, a $50 increase would kill them," he said.

"I'd like to see some transparency, not just sudden decisions," Stauffer added.

When
the aldermen returned, they voted unanimously to rescind the 1979 law,
leaving Curtatone open to increase the percentage retirees will pay for
their premiums.

Beyond the planned increase to a 25 percent
contribution, various options for Medicare plans remain on the table –
some of which could leave as many as 53 retirees unqualified for
coverage. Possible plans will be discussed in upcoming Finance
Committee meetings – although the final authority remains with
Curtatone.

 

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