On April 5, the Board of Selectmen, without prior notice, had voted to require that the retirees’ health insurance contribution be increased to 40%, instead of the   25 % they had been paying.

Prior to the vote, the town had appointed a financial management team to look at new fees and other ways to make up for a revenue shortfall in order to avoid another big tax increase.

The team listed their recommendations in order of priority. Increasing the contribution by retirees was their first priority. This step could bring in $100,000 for every 5 percent more that retirees contribute for their health insurance. Town Administrator John McAuliffe supported a 15 percent increase.

Acting on the recommendation, Selectmen Eleanor Gagnon and Patrick O’Neil voted in favor of a 40% contribution by the retirees, a 2-0 majority vote. Selectman Chairman Steve Moniz was not present at the meeting.

Within 24 hours Marie Mattos, a retired Somerset teacher, prepared a petition in opposition to the contribution increase to present to May 15 Town Meeting. With a rising uproar among retirees, members were literally standing in line to sign the petition.

At a standing-room-only crowd of insenced retirees at the April 12 selectmen’s meeting, speaker-after-speaker criticized the Board’s earlier vote to up the retirees’ contribution.

Retiree Phyllis Henault said she felt former retirees were being unfairly penalized. She said retirees who live in town could have their health insurance go up and pay an increase in taxes as well. “It’s everybody’s town. Everybody should have a little bit of the burden,” Henault said. “We’re getting hit twice.”

“I feel that one group has been singled out,” said retired teacher Barbara Maggiacomo. “Retirees live on a fixed income and the added increase in premiums will greatly impact our retirement.”

Marie Mattos said the selectmen picked on the weakest group of employees because retirees do not have a labor union behind them. Employees contributions are set at 25 percent. “But we do have power,” Mattos said. “We have voting power.”

After listening to a parade of retirees, Selectman Gagnon said she made a hasty judgement. She said she thought she was making the right decision at the time, but apologized for voting for a 15 percent increase in the contribution rate. “It would have put a heavy burden on the retirees,” she said.

The Board then went on to rescind their prior vote and instead voted for a five percent increase. Marie Mattos then withdrew her petition.

However, the vote to recommend a five percent increase was not unanimous. Selectman O’Neil stayed with his vote of a 15% increase. This was especially troubling to the many retired teachers in attendance who were well-aware that O’Neil is a Fall River teacher. Fall River retirees’ insurance contribution in capped at 25%.

Five Percent Vote Rescinded

Despite the Selectmen’s compromise vote, Steve Rivard was upset that there was to be any increase in the retirees’ 25% contribution.

Rivard is an elected member of the Bristol County Retirement Board which oversees the Bristol County Retirement System of which Somerset is a member community. Steve is also the Somerset Fire Chief. He has been a key “go-to-guy” in Bristol County on behalf of our Association.

Shortly after the April 12 vote, Rivard started laying the groundwork to rescind the two selectmen’s vote. Lobbying individual selectmen, Rivard pointed out that it is very rare that any town has voted to increase retirees’ insurance premium percentages. Also, the town is seeking changes in the insurance plan itself that will save the town money and it was premature to increase the retirees’ percentage.

Much to the surprise of many retirees, unaware of the work that was taking place behind the scenes, a reconsideration motion was made at the Selectmen’s May 24 meeting and, by a 2-1 vote the Selectmen rescinded their earlier 70-30 vote and proceeded to vote that the retirees would stay at the 75-25 insurance contribution ratio.

Not surprisingly, O’Neil, the Fall River teacher who had stayed firm for the earlier 15% increase, did not budge and stayed with his five percent increase vote.

“Neither the 15 percent nor the 5 percent increase should ever have been voted,” commented Rivard after the Selectmen reversed their earlier 2 votes.

“These are people living on small, fixed incomes. Marie (Mattos) did a great job of organizing the retirees and she made a very telling presentation to the selectmen. The retirees can be a very powerful group when they flex their muscles.

Association President Ralph White, who also praised Marie Mattos and the retirees, pointed out that a 15 percent increase in the contribution level would have actually been a 60 percent  increase in the retirees’ actual premium cost. Even a five percent increase in the contribution level  would have increased the premium cost by 20 percent.

People lose sight of what contribution percentages actually mean in premium percentage increases. It’s a bit tricky and disingenuous when the true cost to retirees is not shown.