While Carolina Beach’s government may want to continue the retiree healthcare arrangement its workforce desires, changes could be on the way for new employees.
But town officials say they should proceed cautiously. “If other government entities continue to provide some type of retiree health benefit and the Town does not, it would very likely impact our competitiveness and hinder our ability to compete for employees with greater experience levels and/or higher competencies and skill sets,” stated a memo to the Carolina Beach Town Council from Human Resources Officer Sheila Mallard.
The council Tuesday night will consider whether to pursue any of a few cost-reducing options, including increasing the eligibility criteria, to align more with the state retirement system, by increasing the number of consecutive years of service required or decreasing the percentage paid by the town.
Currently it costs Carolina Beach taxpayers $78,250 annually for the 17 retirees receiving benefits, and the trend is two to three new retirees per year.
Among other options, the town could also consider providing a 401k employer match. “This will encourage employees to plan for their own retirements since they have to contribute in order to receive an employer contribution,” the memo said.
“This benefit for retirees has been a useful recruitment tool and has been beneficial in the retention of employees,” Mallard wrote. “However, the continual rise in healthcare costs has government agencies concerned about the long term costs of this type of benefit.
“The goal is to seek solutions that will help manage and/or reduce these costs while maintaining our ability to remain competitive among other local agencies solutions that are in the best interest of the Town and the Town’s employees alike.”
Tuesday’s meeting is scheduled for 6:30 p.m. at the town’s Municipal Administration Building, 1121 N. Lake Park Blvd., Carolina Beach.
Per the agenda (viewable here), the council may also move on a design for its Oceanfront Park project.
The town has already secured $1.4 million in grant funding to acquire land, but before it can move ahead with the development it will need to finalize a schematic design and drawings, according to information presented to council members.
