WEST MILFORD — Township employees may now opt-out of health benefits and instead receive up to $4,000 for doing so.
The council approved the resolution in November, revising the Employment Policy Handbook to include a health benefits opt-out provision for those who are covered by insurance outside of the township. This would allow township employees to instead choose a sum of up to $4,000 or 25 percent of the township savings on the waiver, whichever is less.
The township currently pays $3.6 million for group health benefits for its employees and retirees, plus another $20,000 for those employees who were previously eligible for the opt-out payments and had elected it, according to township Administrator Nancy Gage.
There are several unions involved and contributions by workers are varied so figures were not available on just how much the township could save. Gage said the township has not polled employees to see how many were interested in the new option. Depending on the employee and the union, Gage said the savings could range from a few thousand dollars up to $20,000 on a family plan.