Ordinance No. 18-12
Introduced: March 26, 2018
Public Hearing: April 9, 2018
Ordinance to Amend and Supplement Chapter 89 of the Code of the Township of Vernon Entitled “Personnel Policies”
WHEREAS, the Township Council of the Township of Vernon deems it to be in the public interest to eliminate payments to employees that waive health benefits; and
NOW, THEREFORE, BE IT ORDAINED by the Council of the Township of Vernon, County of Sussex, and State of New Jersey, that Chapter 89 of the Municipal Code is hereby amended and supplemented as follows:
§ 89-3. Option to forego coverage for cash payment.
A retired police officer may apply to not be covered for medical insurance under the Township’s insurance plan in exchange for a one time cash payment equal to 1/2 of the savings on the cost to the Township for providing coverage to said employee for one year. The police officer may not, thereafter, apply to rejoin the Township’s insurance plan.
Upon the expiration of the current collective bargaining agreement that requires payments to employees for the above noted waiver of health benefits, such language shall be modified in the contract to match the above and shall be included in any successor collective bargaining agreement.
ARTICLE V Waiver of Health Benefits
§ 89-11. Waiver Payments.
Effective January 1, 2019: except as required by current collective bargaining agreements, the Township shall not provide payments to employees for waiving health benefits provided by the Township unless a resolution is passed by the Council, no later than the close of the open enrollment period of the previous year, permitting such waiver payments.
Upon the expiration of current collective bargaining agreements that require payments to employees for waiver of health benefits, no such payments shall be included in any successor collective bargaining agreement.
The CFO shall provide to the Council by September 1st of each year a cost benefit analysis for health insurance waivers which shall include the number of persons who currently have health benefits waivers, the number of persons likely to take a health benefit waiver for the following year, the likely type of coverage those waiving the benefits may obtain, the employee contribution for the given year for those who would be seeking a waiver and the total overall savings to the Township as well as any other information deemed necessary by the CFO.
If the Council chooses to offer waiver payments for health benefits for a given benefit year, the Council may at its option adopt a resolution authorizing the waiver payments no later than close of the open enrollment period for health benefits for that upcoming benefit year.
Health benefits waivers shall be the lesser of $5,000.00 or 25% of the saved premium for one year.
Each section of this ordinance is an independent section, and the holding of any section or part thereof to be unconstitutional, void or ineffective for any cause shall not be deemed to affect the validity of constitutionality of any other sections or parts thereof.
Any ordinances or parts thereof in conflict with the provisions of this Ordinance are hereby repealed as to their inconsistencies only.
This Ordinance shall take effect immediately as provided by law.