[Adopted 8-1-1996 by L.L. No. 3-1996]
A.
The Town Board finds that certain of its eligible employees who would
otherwise receive health insurance coverage through the Town's group
health insurance provider for themselves and their immediate family
also may have health insurance coverage available from other sources.
B.
In these particular cases, the Town Board finds that it is an unnecessary
expense for the Town of Montgomery to provide such health insurance
coverage where an otherwise eligible employee of the Town can demonstrate
the existence of alternative coverage from other sources.
This article is authorized by the New York State Constitution, Article IX, § 2, the provisions of the New York Municipal Home Rule Law and the provisions of the Statute of Local Governments.
Subject to the conditions listed below, eligible employees of
the Town of Montgomery who demonstrate that alternate health insurance
coverage is available from other sources may elect to receive periodic
cash payments in lieu of receiving health insurance coverage from
the Town of Montgomery's employee health insurance provider.
A.
The amount of such cash payments will be established from time to
time by resolution of the Town Board; provided, however, that at no
time shall such cash payments exceed the Town of Montgomery's actual
costs of providing such coverage.
B.
Should an otherwise eligible employee that has elected this option
subsequently seek to be reinstated in the Town's health insurance
plan, such employee must notify the Town Supervisor or his designee
in writing of the request to be reinstated together with the reasons
therefor. The Town shall then promptly transmit such request to the
health insurance provider. The otherwise eligible employee will then
be reinstated upon confirmation from the health insurance provider
that such reinstatement of coverage has become effective. At the time
of reinstatement, the employee shall be subject to the same cost-sharing
of said health insurance coverage in effect for other eligible Town
employees at that time or as same may be modified for all other eligible
employees in the future.
[Added 12-18-2008 by L.L. No. 5-2008]
A.
Statutory
authority. This section is adopted pursuant to the provisions of the
Municipal Home Rule Law of the State of New York.
B.
Legislative
intent.
(1)
Section
92-a of the General Municipal Law of the State of New York authorizes
municipalities to provide health insurance coverage to its officers
and employees as a fringe benefit. The Town has in the past provided
such coverage to those elected officials who have requested the same
at the sole cost to the Town. Previously the Town Board realized that
there was a cost savings to the Town when elected officials opted
not to take the health insurance coverage offered by the Town and
that such decision by an elected official would create a disparity
between the total compensation paid to those elected officials who
took the fringe benefit and those who did not. In order to address
this disparity, the Town Board has previously authorized a cash-in-lieu
payment to those elected officials who opted not to take health insurance
coverage.
(2)
Recently,
it has come to the attention of the Town Board that such cash-in-lieu
payments are not authorized by § 92-a of the General Municipal
Law and according such payments may only be authorized by local law.
Since present and former elected officials have accepted these cash-in-lieu
payments without knowing that they were legally unauthorized, the
Town Board determines that it is now appropriate to ratify the past
and existing policy of the Town to allow such payments. Thus, it is
the intent of this section to ratify the existing policy of the Town
and to authorize cash-in-lieu payments to those elected officials
who opted out of the Town's health insurance plan.
C.
Authorization
to allow cash-in-lieu payments. The Town Board of Town of Montgomery
hereby authorizes the cash-in-lieu payments previously paid to past
and present elected officials who opted not to take the Town's health
insurance coverage and further authorizes the continuation of such
cash in lieu of payments in the amount of 33% of the insurance premium
paid by the Town. The amount of the cash-in-lieu payments may be revised
from time to time by resolution of the Town Board; provided, however,
that at no time shall such payments exceed the Town of Montgomery's
actual cost for providing such coverage.
