August 26, 2008
Working longer to earn lifetime health benefits
Nurses in the metropolitan New York area might find higher salaries at nonpublic hospitals, but they can't beat the post-retirement health benefits that Westchester County Medical Center offered until recently.
"We have a lot of nurses come here for a second career to get post-retirement health benefits," according to an administrator for the Westchester County Medical Center (WCMC).
The medical center and two unions--Civil Service Employees Association and New York State Nurses Association--recently agreed to end the practice of awarding lifetime health insurance to employees who retire at age 55 (or older) with as few as five years of employment.
Employees hired prior to January 1, 2007 will continue to qualify for lifetime health insurance--with no premium for retirees and 20 percent contribution for family members--after only five years.
Those hired since January 1, 2007 must work for the medical center for 20 years before qualifying for heath insurance for life.
WCMC spends between $5 and $6 million annually to provide health insurance for 500 individuals who retired since 1998 when the medical center was transferred from a county-owned facility to a public benefit corporation.
New accounting standards, known as "GASB 45," require government entities to calculate their unfunded liabilities for future retiree health benefits. WCMC estimates its current annual liability is $16.5 million and that it faces a $250 million liability over the next 30 years.
« Previous |
Main
| Next »
|
