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Local News

August 18, 2010

Oneonta to offer insurance buyout to retirees, ex-mayor

ONEONTA _ Retirees and the last remaining elected official participating in city health insurance plans have until the end of the year to apply for a one-time buyout.

The Common Council voted Tuesday to offer the optional cash buyout to about 100 people who have one of two health plans. The measure, which passed unanimously, involves one-time cash payments in exchange for permanent exit from the plans.

Former Mayor Kim Muller is one of those being eyed for a buyout.

The city budgeted $1.1 million for retiree and elected official health insurance plans in 2010. The plans have about 100 participants.

The cash payments equate to the annual premium paid on an individual policy, Personnel Director Kathy Wolverton said.

Under the City of Oneonta Group Health Insurance Program, the buyout will be $7,365 for single coverage, $13,940 for two-person coverage and $16,960 for family coverage.

Under the City of Oneonta Medicare Supplemental Insurance, the buyout will be $5,460 for single coverage and $10,920 for two-person coverage.

"For the city, we could save a lot of money because someone would be on there for 10 years, 20 years," Eighth Ward Alderman Kevin Hodne said.

It is not known how many would take advantage of the buyout.

When buyouts were last offered in 2006, no one took them. Three people took them in 2003, Wolverton said.

The only former elected official still participating is Muller, who was mayor from 1998 to 2006.

Mayor Dick Miller said Muller had recently taken a new job and said he was not sure if she would take the buyout.

The Common Council voted to bar future elected officials from participating in 1999 and that year also required current participants to contribute 20 percent of the premium.

None of the seven sitting aldermen are eligible. Miller and former Mayor John Nader are also ineligible.

Fourth Ward Alderman Mike Lynch said the council should look to see if it can take the benefit away from Muller if she does not opt for the buyout.

"This is a benefit that is way out of proportion to the amount of compensation she was receiving as mayor," Fourth Ward Alderman Mike Lynch said.

But Miller said he did not know if that would be possible.

"I don't know that we can legally take it away from her," Miller said.

The city should also prevent pre-1999 elected officials who are eligible for -- but do not currently receive -- health benefits from getting them, Lynch said.

Wolverton said it was not clear if a pre-1999 elected official could successfully get the benefit if they had not been getting it all along. A former alderman attempted it a few years ago and was denied by the city's insurance company, she said.

Muller said Tuesday night she would have to see the measure passed by the Common Council in order to make a decision on whether she would accept a buyout.

In her case, it would be $16,960.

Muller recently left her state job in the Grants Development Office at the State University College at Oneonta and began working last week as director of the Eastern Stream Center on Resources and Training located at SUNY Oneonta, which works on migrant education and related issues and falls under the purview of the Research Foundation of SUNY.

"I have been very careful to make sure that my daughters and I are protected," Muller said Tuesday night.

Muller said she understands the city's situation and its desire to cut costs in the face of annual budget deficits. The move toward ending elected official participation and requiring contributions and previous buyouts happened during her administration.

"I am the one that instituted a contribution toward health insurance," Muller said. "I certainly understood the issue with the cost."

Muller said her positions on the contributions led to rocky relationships with the city's unions.

"I got a lot of grief going into my second term," she said.

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