Teaneck—After a series of spirited and pointed public comments, the Teaneck Town Council, on Tuesday, introduced an ordinance to mitigate the issue of payments to employees who opt out of the Township’s health insurance program. This issue was brought to the forefront after a recent audit of the township’s finances, which was highlighted in social media posts and news reports. In 2014, a reported $400,000 was paid out to 50 municipal employees who opted to waive coverage under the Township’s insurance program, some receiving as much as $13,000 in payments.
Statements from the public indicated anger at and disappointment in members of the council for their contentious debate on the topic in previous meetings, which, Teaneck residents alleged, contained multiple “personal attacks” and showed that the council was lacking in “integrity.”
An ordinance passed in 1965 states that employees shall not be paid in exchange for declining healthcare benefits through the municipality. The ordinance was re-codified in 1998 when Teaneck changed its charter. However, in 2008, a resolution was unanimously passed, authorizing stipends payable to employees who elect not to accept healthcare benefits. This resolution entitled employees who declined the benefits up to 50 percent of the amount thereby saved by the employer. Council members at the time of the resolution included current Mayor Lizette Parker and Deputy Mayor Elie Katz. In 2010, the statute was amended,
limiting the waiver payment to 25 percent of health insurance premiums, with a maximum reimbursement of $5,000 annually. The revision only applies to those who opted out of coverage after 2010.
The proposed ordinance would clarify any ambiguity about waiver allowances and officially codify the Township’s waiver program, dismissing all opportunities for grandfathering. The ordinance would require every employee opting out of the healthcare program to renew their waiver annually and provide proof that their health insurance coverage is not offered through a state healthcare plan or a school employee benefit plan. This prerequisite comes with the intention to avoid any so-called “double dipping” in the system should an employee take a stipend in lieu of benefits while they are potentially covered by a state healthcare program.
The Township manager, William Broughton, contended that, in essence, these stipends save Teaneck money because it eliminates the need to fund full benefits for all of its employees. However, the atmosphere during the council meeting was quite contentious, and no resident addressed this point. Many outspoken Teaneck residents not only contested that the waiver program constituted a gross abuse of taxpayer dollars, but also strongly objected to the tone with which the issue was discussed among council members. While the council now appears to agree that amending the existing program and reducing the payouts to employees is a fair resolution, there are those who argue that the benefits program should be eliminated entirely.
After a brief discussion, the ordinance was tabled for future debate.
The ordinance is expected to be further considered for final passage at a public hearing at the next council meeting, to be held on March 22 at 8 pm in the Council Chambers of the Municipal Building.
By Andrea Nissel
