Benefits for St. Mary’s County Government employees will remain unchanged for the upcoming fiscal year based on  a unanimous vote Monday by the county commissioners. The vote came after St. Mary’s County Human Resources Director Susan Sabo laid out a variety of options for saving the county money as they make tough decisions in their budget deliberations.

The decision to leave things as they are was based on the fact that changes in the vesting schedule for the retiree health plan just went into effect on July 1 of last year. Those changes were approved in 2007 but the changes were given three years to take effect to give county employees time to adjust to them. Under the changes, a full retiree health subsidy would kick in after 25 years instead of 16 years previously. The new schedule would have a 75 percent subsidy after 20 years, 50 percent after 15 years and 25 percent after 10 years. Previously the lowest level for health care vesting was five years, which was raised to 10 years. They are eligible for a pension after five years, based on the existing state pension plan, which the county follows.

“The retirement age change was one of the most difficult and disruptive changes we’ve made. A lot of employees were upset,” said Commissioner Larry Jarboe, in supporting the status quo.

Some of the potential options for cost saving detailed by Sabo included:

  • There are currently no deductables for health care; deductables could be added.
  • Co-pays could be increased for both office visits and prescriptions (those co-pays were increased in July, 2010).
  • The subsidy the county pays for health care premiums could be lowered from the current 85 percent.
  • Consider health care plan options other than the two now offered: Prefered Provider Network and Blue Choice HMO.

Each of the above changes could contribute considerable savings to the budget.  For instance instituting a $200 deductible for individuals and $400 for families could save $350,000 a year.

Another factor that could affect employee benefits may be out of the commisisoners’ control. Since the county follows the state’s pension plan, a change by this year’s legislature would ripple down to county employees. Changes under consideration would increase the employee contribution to seven percent from five percent, or keep the contribution at the same level with reduced benefits. County Chief Financial Officer Elaine Kramer said, however, that Maryland Attorney General Douglas Ganzler may rule that the second option is not permitted.

Sabo also detailed some salary options for the commissioners. Providing no merit increases next year for county employees would save $550,000. Not giving Cost of Living increases would save a half million dollars for each perceentqge increase. Step and cost-of-living increases are not currently in the proposed budget. And, furloughing employees would save $75,000 for each furlough day. No furloughs are currently in the proposed budget.

Sabo said the commissioners could save $500,000 by giving a 10-percent bonus for retirement for those eligible (46 before July 1) and then replacing the retiree with an employee at the lowest grade for the position. If the commissioners didn’t rehire for the retiree’s position a savings of $1.4 million would be incurred.