Submitted by: Jay Joyner
Submitting Department: Human Resources
Agenda Section: Discussion
Item Title:
title
Retiree Benefits
end
Suggested Action:
recommendation
For Discussion
end
Summary Background:
The City of Hyattsville currently provides health benefits to retirees with 16+ years of service and their dependents (spouse and/or children). The average monthly cost of this benefit is $32K.
The city currently has:
- 43 retirees
- 26 dependents of retirees
Under the existing program, 21 current employees and their spouses/dependents are eligible for these benefits when they retire, creating a growing financial obligation for the City.
The City conducted a comparative analysis with similar municipalities to benchmark against their retiree benefits. We found that most Maryland municipalities do not offer retiree health benefits. In one city, retirees are eligible but must pay the entire premium (the city does not cost share).
The presentation will outline the financial impact of the current retiree benefit policy and suggestions for a phased restricting of the program. The proposed changes to the retiree benefit are intended to ensure the long-term sustainability of the City while honoring our commitment to current retirees through grandfathering provisions, providing a measured, two-step transition for future retirees, and aligning the City’s retiree benefits program with comparable municipalities.
Next Steps:
Council discussion and future adoption of changes to retiree benefits
Fiscal Impact:
Up to $32K for the first year.
City Administrator Comments:
The city must modify our health benefits for retirees in order to ensure long term economic viability in the future.
Community Engagement:
Click or tap here to enter text.
Strategic Goals:
Goal 2 - Ensure the Long-Term Economic Viability of the City
Legal Review Required?
Choose an item.