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Analysis of Employee Benefits
Retirement and Pensions: This is a fixed cost of the Town and cannot be lowered in accordance with Chapter 32, Section 22 (7)(c)(ii). I would request that the Town budget $685,423 to meet this obligation.
Workers Compensation: This is a fixed cost to the Town and is based, in part, by our workers’ compensation claim experience. Due to decent claim history and the recommendation of our workers’ compensation insurance agent, I am recommending that we increase this line item from $42,000 to $45,000.
Unemployment Insurance: This is a fixed cost to the Town and is based upon a percentage of the Town’s payroll. However, we saw great increases in this line from last year due to the number of layoffs this past year. I believe we need to fund this line item at an appropriate amount and Mike Daley and I are recommending $175,000 for next year since the Unemployment trust has been used to help balance this year’s budget.
Group Health Insurance: This is a fixed cost to the Town and is the Health Insurance line item for the Town and School employees. I am proposing reducing this line item from $3,101,704 to $2,996,600. While we are seeing a 6.5% increase in our health insurance rates, actions by the Town to change contribution rates will see absorption of this increase and even some savings. This betters the industry standard of 8-10% increase by coming in at 0% due to negotiations with our health insurance carrier and employee concessions. Credit must go to the employees of West Boylston and our Insurance Advisory Committee for their work on this subject.
Group Life Insurance: This is a fixed cost to the Town and should not be lowered. Based on stable premium costs, the Finance Director has recommended that this line item be maintained at $13,000.
Medicare: This is a fixed cost to the Town and is based upon a percentage of the Town’s payroll. It is requested that this line item be increased from $155,000 to $160,000 to cover expenses for FY11.
Total Employee Benefits: $3,943,734 - a decrease of 1.8% primarily due to health insurance contribution rate changes and employee concessions.
History of Employee Benefits
2005 |
2006 |
2007 |
2008 |
2009 |
2010 |
2011 |
$2,893,500 |
$3,119,815 |
$3,276,408 |
$3,508,264 |
$3,953,468 |
$4,021,638 |
$3,943,734 |
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