BAYONNE — In a resolution added to the agenda at the last minute at the Jan. 19 meeting, the Bayonne City Council voted to implement at least some of the changes to public employee benefits as pushed for by Gov. Christopher Christie last year. The resolution would roll back some of the benefits for people who retired after November 2010 and would set new provisions for those retiring in the future.
“This is going to save the city money,” said Business Administrator Steve Gallo.
The resolution passed by the City Council adopts provisions set by the state to provide flexibility in managing post-retirement medical costs, and adopts the State Health Benefits Program (SHBP) and School Employees’ Health Benefits Program (SEHBP) eligibility standards for employer-paid coverage into alignment with local government laws.
The change allows the city to define which employees qualify for these medical benefits and allows the city to negotiate payment obligations for post-retirement medical coverage.
“We get to decide who can be covered,” Gallo said.
According to the resolution, Terrence Malloy, chief financial officer of the city of Bayonne, has determined that this change will fiscally benefit the city.
While this resolution becomes effective Feb. 1, 2011, it also rolls back any benefits for people who have retired after Nov. 30, 2010, but not does affect those who qualified prior to that date.
This was one of the changes unveiled by Gov. Christie last September as part of a larger pension reform package last September with the hope to maintain government pensions by reforming the health and other benefits.