SEPTEMBER 2000 - Lag Behind At The Local Level - One of the most neglected fringe benefit options in the cities, towns and counties of Massachusetts is the contribution toward health insurance premiums of the surviving spouses of deceased employees and retirees by their governing authorities. Sadly, 160 of these cities, towns and counties make no contribution toward the insurance premium of these spouses.

Section 9D allows the city, town or county to pay one-half of the insurance premiums of a surviving spouse. Section 9D1/2 allows a payment of an amount greater than 50%, while Section 9D3/4 allows a payment of less than 50%.

Approval of any of these three sections is by the city council in a city having Plan D or Plan E charter and by any other city by a vote of its city council and approval by the mayor; by a ballot vote of a town at a town election; and by the county commissioners in a county. Approval in authorities or districts is by their governing bodies.

"To pay 100% of insurance premium costs is a terrible hardship for these widows," said Association President Ralph White. "At a time when they are living, in many cases, on a greatly reduced survivors' allowance, they are hit with a huge insurance premium increase. Some of these women see their entire check eaten up by insurance premiums and are forced to drop their insurance."

White pointed out that ballot questions are a tough vote to win. "It's tough to win a ballot question at a town election, no matter how worthy," he said. "We rely greatly on local employee unions and retirees to help win a favorable vote. In many cases, employees don't look that far ahead and aren't as involved with this issue as we would hope."

While dealing with a city council is preferable to a ballot question, still, there are several cities that contribute nothing for survivors' insurance. In Pittsfield, for example, Jerry Miller (Retirement Board member) has been unsuccessfully seeking a survivors' insurance contribution by the city for years.

White emphasized that our Association stands ready to assist members of local governments who want help in seeking statutory acceptance of governmental contributions to survivors' premiums. "We've had better luck in helping to win acceptance of greater contributions for retirees' insurance. I'll have to admit that victories for survivors have been few and far between," he said. "But we're ready and willing to help, and that includes financially with mailings or in any other way."

State survivors are more fortunate than most in cites and towns, with the Commonwealth picking up 90% of the premium costs. But the survivors' victory, which was won in 1983 (Chapter 562), "didn't come easy," recalled White.

"It took two years. The active employees had earlier gone to 90% and then we won it (90%) for the retirees, but the survivors lagged behind, with the state contributing 50%.

"Senator Anna Buckley of Brockton (now retired and an Assn. member) filed the bill for our Association. She carried the 90% bill (S-2223) in the Senate. She was backed by Senators Jack Brennan and Chet Atkins among others.

"On the House side, a coalition of representatives played major roles at one stage or another. Representatives Ted Aleixo and Frank Woodward of the Insurance Committee and Bob Ambler and Mike Creedon were leaders in that branch."

Although former state employees who retired after July 1, 1994 are now paying 15% of their insurance premiums with the state paying 85%, the survivors have remained at 10% with the state paying 90%. "The employees and future retirees lost the 90-10 arrangement in 1994 but there is some solace in the widows staying at 90-10," said White. "In that regard, the Legislature showed some compassion. Now, if there was just a little more compassion locally..."