Union member oppose proposed health plan

Union organizers representing city electrical workers and firefighters expressed general opposition Monday to a proposed ordinance that would change the eligibility criteria for the health insurance component of Independence’s retiree pension plan.

Bruce Van Compernolle, business representative for IBW-Local 53 and Kirk Stobart, president of the Local-781 firefighters union, both opposed changes in a proposed ordinance that would require a city employee hired after Jan. 1 of next year to work at least 20 consecutive years in order to qualify for retiree health insurance benefits administered through the Local Government Employees Retirement System, or LAGERS, a non-profit public pension system that provides retirement, disability and survivor benefits to Missouri’s local government employees.

Presently, a city employee is vested in the LAGERS program after five years of employment. The change would not affect current employees. However, both union representatives feel the jump in required years is too steep.

“This has been an ongoing issue for a couple of years now,” Van Compernolle said. “We have maintained the position that we would support going from five years to 10 years. We feel as though (five years to 20 years) is quite a leap.”

Van Compernolle added Local 53, which represents 150 employees of Independence Power and Light, is willing to compromise and would support 15 years of consecutive employment to be vested.

“That is five years longer than what we initially supported,” he said, adding “we do understand the cost involved and we are willing to work with the city on this.”

City Manager Robert Heacock said the proposed change would reduce the cost of the retiree health insurance over the next 40 years by $13.6 million. If no changes are made to the current structure of the program – which covers 86 percent of a retiree’s health insurance cost – the program would cost the city $150 million over the next 40 years.

“It is not financially responsible to benefit someone for life who has worked for the city for a short amount of time,” Heacock said, adding currently an employee who has worked for the city for only five years could conceivability receive the same benefits as someone who has worked for the city for over 20 years. “Nobody else (in the state) that I am aware of offers this benefit.”

Heacock added the city staff agreed with the city’s Personnel Board’s recommendation that an employee that worked 15 consecutive years and suffered duty related disabilities would be eligible for health benefits if the employee would have worked an additional five consecutive years without the disability. The board unanimously supported the staff recommendation of the 20 consecutive year criteria, Heacock said.

“In 1999, the cost of the program was $1,703,669,” Heacock said. “Today it is over $4 million. That’s a 148 percent increase.

The Independence City Council heard the first reading of the ordinance Monday night and is expected to vote on the measure Dec. 15.