North Bergen’s non-union employees can rest easier today. When they retire, their health benefits will continue, thanks to a new ordinance adopted last week by the township’s Board of Commissioners.
The ordinance, similar to those utilized by many neighboring municipalities, calls for the payment of health benefits to those who retired with 25 years of service to the Public Employees Retirement System with at least 10 years of service in North Bergen, to those who retire under a disability pension or those who retire at the age of 62 with at least 15 years of service to the township.
The newly adopted program begins paying benefits for those who retired after Jan. 1. This means that former township administrator Joseph Auriemma, who officially retired last week after being allegedly linked to an FBI investigation surrounding contracts involving air conditioning and heating vendors, will remain as a part-time employee and will be entitled to the benefits.
Mayor Nicholas Sacco vehemently denied speculation that the program was adopted in time to provide benefits for Auriemma, who qualifies for having accumulated 25 years in public service.
“It is just coincidence that Joe is retiring,” Sacco said. “It’s just another example of a political accusation, and the attacks are politically motivated. We’ve been looking at this program for at least four or five years. Other towns offer it. It’s only right for our employees to have the same rights and be able to spend the rest of their lives not worrying about health benefits. They should be able to walk away with the assurance of knowing that they have health benefits. They deserved it.”
According to Sacco, Chris Pianese, the town’s chief financial officer, who has already taken over some of the responsibilities that opened up due to Auriemma’s retirement, found the ordinance that called for health benefits.
“The cost is actually minimal, like $75,000 a year,” Sacco said. “In an annual budget of $60 million, it’s really nothing. Plus, we don’t have a lot of people retiring. Many of our employees stay on past 65. When that happens, the cost drops even more. Our employees were not being treated fairly, so this gives them a piece of mind.”
Added Sacco, “If you work for the state, you have it automatically. If you’re a police officer, a firefighter, a school employee, you have it. For some reason, North Bergen was wrong not to adopt this sooner. It should have been done years ago. We’re correcting it now, so people have what they deserve.”
Under state law, municipalities can offer the health benefits to retirees, but first must pass appropriate legislation to do so, thus the adoption of the ordinance last week.
Pianese said 91 township employees will be eligible for the benefits between the end of 2002 and 2010. The benefits would then be budgeted annually, provided every employee chose to take the package.
A lot of the retirees would also be eligible for Medicare benefits upon retirement, only after the age of 65.
Sacco said that he was pleased that Auriemma will remain as a part-time employee.
Auriemma, who is still entitled to approximately $30,000 in unused sick time and vacation, will receive no more than $15,000 as a part-time employee.
“Keeping Joe on part-time enables us to finish off projects that he had started,” Sacco said. “It will take a huge load off our shoulders, because we’re already having Chris Pianese assuming responsibilities that Joe had. We’re trying to keep things moving ahead as efficiently as possible.”
It is not known how Auriemma’s retirement as township administrator will change his status as the operations director of the town’s Municipal Utilities Authority. Auriemma’s consulting business may be hired to work with the MUA.
Auriemma, who had been earning about $147,000 as municipal administrator and as MUA operations director, will be eligible to collect a yearly pension of more than $65,000, according to the state Department of Personnel. Auriemma was a little shy of the 25 years of service time needed to qualify for retirement, but purchased 14 months worth of service credit for approximately $25,000 when he applied for his pension in January.