[HISTORY: Adopted by the Town Board of the Town of Pawling 3-19-2008 by L.L. No. 1-2008. Amendments noted where applicable.]
The Town Board finds that some of its eligible employees, officers and retirees who could otherwise receive health insurance coverage through the Town's group health insurance provider for themselves and/or their families may already have health insurance coverage available to them from another source. In cases such as this, the Town Board finds that it is an unnecessary expense for the Town of Pawling to provide such an employee, officer or retiree health insurance coverage where an otherwise eligible employee, officer or retiree of the Town already has sufficient health insurance coverage available from another source. It is therefore the intent of this chapter to authorize Town employees, officers or retirees who already have health insurance coverage available to them to elect cash payments in lieu of the Town providing health insurance coverage for them and/or their families as set forth more fully below.
This chapter is enacted pursuant to Article 2, § 10, of the Municipal Home Rule Law of the State of New York; the New York State Constitution, Article IX, § 2; and the provisions of the Statute of Local Governments.
Subject to the conditions listed below, eligible employees, officers and retirees of the Town of Pawling who have alternate health insurance coverage available to them from other sources may elect to receive cash payments in lieu of receiving health insurance benefits from the Town of Pawling's health insurance provider. Said individual shall notify the Supervisor in writing of his or her election to be paid money in lieu of health insurance no later than the date of the first Town Board meeting in January of the year such choice is to take effect. The employee, officer or retiree must provide documentation of comparable medical insurance in a manner and form to be determined by the Town and sign an appropriate waiver of health insurance coverage and waiver of liability to the Town. The payments in lieu of health insurance benefits will continue in subsequent years unless the employee, officer or retiree notifies the Supervisor in writing of his/her desire to resume receiving Town-provided health insurance.
The amount of any cash payment will be equivalent to 25% of the cost of the annual premium for a family plan for a current employee or officer.
The amount of any cash payment for a retiree will be equivalent to 25% of the cost of the annual premium for a retiree family plan not eligible for medicare or a retiree family plan eligible for medicare, depending on whichever plan the retiree is eligible for.
The Town Board may, through a Town Board resolution, change the percentage of the annual premium cost determining the cash payment.
Method of payment. Payment will be made as part of the first payroll in March of each year for each current employee or officer, and payment for each retiree will be made by mail on the same date.
Should an otherwise eligible employee, officer or retiree who has elected this option subsequently desire to join the Town's health insurance plan or be reinstated in said plan, such employee, officer or retiree must notify the Town Supervisor or his or her designee in writing of the request to join or be reinstated, together with the reasons therefor. The Town shall then promptly transmit such request to the Town's health insurance provider. The otherwise eligible employee, officer or retiree will then be enrolled or reinstated upon confirmation from the health insurance provider of the Town that such enrollment or reinstatement of coverage has become effective. At the time of entry or reinstatement to the Town's plan, the employee, officer or retiree shall be subject to the same cost sharing, if any, of said health insurance coverage in effect for other eligible Town employees, officers or retirees based on his or her date of initial employment with the Town of Pawling or as same may be modified for all other eligible employees, officers and retirees in the future. An individual having chosen to be reinstated in the health insurance plan shall be required to reimburse the Town pro rata for the remainder of the year of the payment made to the individual by the Town.
An eligible individual who is hired or takes office after January 1 of a particular year and who chooses to receive cash payments in lieu of receiving health insurance benefits from the Town of Pawling health insurance provider shall comply with the applicable provisions of § 40-3A hereof. Upon compliance with the applicable provisions of § 40-3A hereof, said individual shall receive a cash payment as stated in § 40-3B hereof, but said cash payment shall be reduced to 25% of the pro rata savings to the Town of Pawling applicable for the remainder of the calendar year. Said cash payment shall be made as indicated in § 40-3C hereof or as part of the next payroll after complying with the applicable provisions hereof.
Should an employee who has received a cash payment as provided in § 40-3 hereof leave Town employment before December 31 of any year in which said cash payment is received, said individual shall reimburse the Town pro rata for any period of time remaining in the calendar year.
An employee, officer or retiree receiving payments pursuant to this chapter shall be fully responsible for any income taxes that may be payable with respect to such payment, and the Town may withhold any amounts required by any applicable tax law, federal or state, that relate to or require such withholding on payments of such nature.
Employees who are members of a collective bargaining unit are not covered by the health insurance buyout provisions of this chapter.
This chapter further ratifies the prior actions of the Town Board whereby cash payments in lieu of the Town providing health insurance coverage for eligible employees, officers and retirees were authorized by resolution.
The provisions of this chapter are declared to be severable, and if any section, subsection, sentence, clause or part thereof is, for any reason, held to be invalid or unconstitutional by a court of competent jurisdiction, such decision shall not affect the validity of any remaining sections, subsections, sentences, clauses or part of this chapter.
This chapter shall become effective immediately upon filing in the office of the Secretary of State.