WHEREAS, Public Act 152 of 2011 (hereinafter “the Act”) establishes new restrictions on the amount public employers, including Pittsfield Charter Township, can pay toward the cost of medical benefit plans offered to employees; and
WHEREAS, the Act also requires that an agreement “executed” after September 15, 2011 shall not include terms which are inconsistent with the requirements of the Act and that the collective bargaining agreement and “other contract” exemption last until the contracts expire; and
WHEREAS, the Act provides three options for complying with all provisions of the Act; and
WHEREAS, the stated maximum payment limits have been adjusted by the state treasurer for 2023, to those noted in the following Whereas, based on the applicable medical care component consumer price index factor (showing an increase of 1.3% from 2022 rates); and
WHEREAS, unless the Board of Trustees, by majority vote, selects another option, the Township shall pay no more for the “total annual costs” of the medical benefit plans it offers to employees than an amount equal to $7,399.47 times the number of employees with single person coverage, $15,474.60 times the number of employees with individual and spouse coverage, and $20,180.43 times the number of employees with family coverage, for a medical benefit plan coverage year beginning on or after January 1, 2023 (the “Hard Cap” option); and
WHEREAS, the Act does not apply to medical benefit plans that include benefits provided to individuals retired from a public employer; however, Township Personnel Policy #320 – Retiree Health Insurance, and all Collective Bargaining Agreements do allow for this requirement; and
WHEREAS, the Act applies to medical insurance (including prescription drugs) but does not apply to dental, vision or other insurance plans, such as life or disability insurance;