[HISTORY: Adopted by the Town Board of the Town of Gates as indicated
in article histories. Amendments noted where applicable.]
[Adopted 8-4-1997 by L.L.
No. 5-1997]
This article shall be known as the "Local Law Providing an Alternative
to Health Insurance Benefits."
It is the purpose of this article to codify the Town of Gates' procedure
to allow employees to take a cash payment in lieu of certain health insurance
benefits. This procedure was established by resolution of the Gates Town Board
on March 1, 1993 (R. 9193). This policy results in a savings of health insurance
costs to the Town of Gates and a cash benefit to eligible town employees.
Any Town of Gates employee who is eligible to receive health insurance
coverage provided by the Town of Gates and who has an alternative provider
of similar health insurance coverage and benefits may elect to waive said
health insurance coverage and benefits and receive, in cash, one half of the
annual health insurance premium which would have been paid by the Town of
Gates to the health insurance provider for said coverage and benefits.
The health insurance plans which are subject to this article include
general medical insurance coverage and benefits, dental coverage and benefits
and vision care coverage and benefits. In the event that additional health
insurance plans are added to those offered to Town of Gates employees, the
Town Board of the Town of Gates may extend this article to apply to said additional
health insurance plan(s) by passing a resolution to that effect.
Any Town of Gates employee who wishes to take advantage of this alternative
must make a request in writing to the Town of Gates Payroll Administrator.
Said letter must indicate which plan or plans the employee wishes to terminate,
a termination date and, with respect to the medical insurance benefits, the
source of the alternative medical insurance coverage. The Payroll Administrator
will take the appropriate steps to terminate the insurance subsequent to receipt
of the letter. The employee shall receive one half of the pro rata savings
to the town of the insurance premium for the balance for the year in which
termination occurs. The payment will be made the first February following
the date of termination. The payments in lieu of health insurance benefits
will continue in subsequent years unless the employee notifies the Payroll
Administrator in writing of his/her desire to resume receiving town-provided
medical coverage. In the event of resumption of coverage, the employee will
receive a cash benefit equal to one half of any pro rata savings applicable
to the year in which health care coverage was resumed. Any payments made pursuant
to this article will be net of any taxes or other required deductions.
