The Cadiz Finance Committee discussed the looming costs at their quarterly meeting last week.
A member of the Kentucky Retirement System, the city’s retirement-plan contribution is determined by KRS, which recently sent a memo saying those rates would rise to 13.19 percent for non-hazardous workers and 28.21 percent for hazardous workers (the previous rates were approximately 10 and 23 percent, respectively).
Employees themselves contribute 5 percent and 8 percent of their salaries, respectively.
The increased rates, which take effect July 1, will cost the city an additional $21,276, according to City Administrator Hollis Alexander.
What Cadiz pays for health insurance, of which 25 of its employees take advantage, is set to increase by $21,886 — a 16.67 percent increase — should the city keep its current plan through the Kentucky League of Cities.
“It’s putting a hurt on us,” Alexander said.
Chairperson Donna McNichols agreed.
“We can’t continue to afford this kind of increase,” she said, suggesting it might be time to shop around. “We can’t just assume [the Kentucky League of Cities] has the best deal on the table.”
The city has until April 24 to renew or decline its current health-insurance plan.
If a significantly lower plan cannot be found, the city may have to cease paying health insurance for employees’ spouses or dependants, which they currently do for ten employees.
The city currently pays 100 percent of employee premiums for health insurance. For families or dependants, the city covers the cost of one employee plus 60 percent of the remainder.
“The ideal world is to provide family plans as well, but I don’t know if we can afford it,” she said.
Committee member Manuel Brown regretfully agreed the family health-insurance plans may have to be cut.
“I hate to be a scrooge,” he said, “but where else do you go?”
For the rest of this story, please see this week's edition of The Cadiz Record.