Tensions rose high as a number of angry Chelsea retirees, led by the Association's Public Employee Committee (PEC) designee Joe Siewko, derided the city's government for the attempt to meet the city's fiscal shortfall on the backs of low-income former workers.

"This will give everyone involved a chance to look more closely into the situation and to offer input about how best to resolve this issue," said City Manager Ash.

"If an agreement can be struck to reduce city costs elsewhere or in a different fashion, I would gladly agree to pare back or totally eliminate the proposed retiree health insurance increase," Ash added. "I will commit myself to work toward that end."

Earlier, Ash had said the city could save as much as $2 million if local unions would vote to join the State's Group Insurance Commission. When the December 1 deadline was reached without an agreement, Ash said he would increase retirees' premiums from 15% to 30%. This would have saved the city $335,000 under the current insurance contract. Employee unions, which are currently locked into  a contract with the city, would not be included in any increase at this time.

Ash had been active in a movement, sponsored by the Metropolitan Area Planning Council, which resulted in legislation being enacted 2006 which allowed cities and towns to join the State's GIC, on an individual basis, and became part of a mega insurance pool that includes state employees and a large number of teachers.

However, in order to join the GIC the law requires a 70% weighted vote of a community's employees and retirees, something that only a small percentage of cities and towns have attempted to accomplish.

Most municipal employees and retires would prefer to stay with their current plans, primarily Blue Cross Blue Shield, but have expressed a willingness to join the GIC, if money saved by such a move would be shared with members of the plan in the form of reduced premium contributions paid by employees and retirees. However, recent GIC increases in deductibles and co-payments soured some PECs.

Mayors and Town Managers have been hoping that the Legislature would change the law, so that they would have the right to contract with the GIC without employee/retiree approval or negotiation. Thus far, the Legislature hasn't made such a decision, and probably won't.