Commissioners explore retiree pay

By Phil Major
publisher@wood.cm
Posted 5/23/24

Wood County commissioners took a long look at two expenses critical to the upcoming budget in a workshop last Tuesday – retiree benefits and health insurance.

Commissioners heard from …

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Commissioners explore retiree pay

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Wood County commissioners took a long look at two expenses critical to the upcoming budget in a workshop last Tuesday – retiree benefits and health insurance.

Commissioners heard from three retirees who lobbied for an increase in benefits.

County retirees received a series of cost-of-living increases from 2008-2014 but have received none since then.

Commissioners heard cost estimates for various increases, from a flat three percent increase to 20% and 30% of the rise in the Consumer Price Index.

Increases based on the CPI would be retroactive to bring retirees’ dollars in line with their current value.

As an example, a longtime retiree receiving $234 would have been receiving $617 if increases had been given yearly based on 100% of the the CPI.

At 20%, the current payment would be in line, and at 30% it would be $280, while a 3% flat increase would add $7.

A 30% of CPI increase would cost the county $2.1 million this year while the 20% would be $1.6 million and a flat 3% would cost $1.2 million.

This year’s cost-of-living increase based on the CPI would be 3.35%.

The county is currently funding its retirement plan at 96.3%, with assets of $55.1 million versus liabilities of $57.2 million.

Jane Herring, former county treasurer, called for respect and consideration of those who came before.

She cited three factors in budget maters: Is it needed? How much is it? And can it be afforded?

She said it is needed, and the county can afford it.

“We’re in the best financial shape in the last half century,” she said, adding the county can afford a “reasonable, meaningful increase.”

She also recommended commissioners consider a plan for cost-of-living increases for retirees, similar to the salary schedule that has served the county well for 40 years

Commissioners are also looking to add funds to the health insurance account, after hearing that there is a shortfall.

The county is self-funded, and claims have outstripped money set aside to pay them.

Insurance costs have risen $400,000 more this year, County Judge Kevin White said.

Consultants told commissioners the trend is that health care costs are rising 10 to 12% per year.