Today’s Daily Times provides some of the facts regarding current “life insurance confusion” regarding Wicomico County employees. Unfortunately, it doesn’t provide all of the facts and evidently DT reporter Greg Latshaw doesn’t have much understanding of the facts surrounding the matter. After a bit of research, I’m comfortable that we can give it a go.
Confusion 1 – the “life insurance” spoken of in the article isn’t really life insurance. It’s a death benefit without an insurance contract. If a Wicomico County employee who dies while still an employee of the county, his designated beneficiary receives 1 year’s salary.
Still confused? Don’t feel bad, it is confusing. However, just take my word, there is no insurance contract between the employee and the county. However, because the benefit is called for in the county’s personnel manual payout is required. The employee pays nothing for the benefit.
Confusion 2 – if there is no insurance contract, why did the county HR director talk about “self-insuring”? Damn good question! Perhaps county HR director Mike Thompson is showing that County Executive Rick Pollitt put someone in the job who really isn’t qualified?
The county does have an insurance policy. However, the way that it was explained to me by Pollitt’s office is that the policy isn’t on individual employees but simply pays the first $50,000 in the event that an employee passes away. If the employee’s salary is greater than $50,000, the county picks up the balance. Perhaps this is some type of group coverage limited at $50,000 per incident or it’s simply a liability policy with a limit of $50,000 per occurrence. Don’t know.
Here’s what I do know. The county already has a “death benefit sinking fund”. Pollitt’s office believes that there is enough in the current fund to cover any potential losses. Therefore, they are not renewing the insurance policy which covers their first $50,000 of exposure per employee.
Since this is not fund is not an insurance contract, Thompson either misspoke regarding this matter, doesn’t know what he’s doing, or Latshaw read something in to this that isn’t there.
Confusion 3 – Does Pollitt have the authority to contract this liability without council’s consent?
For me this is the 800 pound gorilla. The Executive believes that he can. County Attorney Ed Baker (a man who I respect greatly) argues that Pollitt is not contracting a new liability because the death benefit is already a part of a county employee’s benefit package. Baker is (as usual) correct on this … but only to this point.
As this goes to post, I don’t know how much money sits in the “sinking fund”. According to Pollitt’s office, no death benefit has been paid for around 10 years. However, WHAT IF, a sizable number of county employees passed away this year. Would there be enough to cover it?
Don’t know. But I do know this … IF such a terrible thing happened the county could be on the hook for quite a bit of money. It is in this sense that I argue Pollitt is contracting a NEW liability without council approval.
There a several similarities between this and Pollitt balancing the budget based on personnel assumptions that are not the current policy of Wicomico County.
Does Pollitt believe that he is King Richard I?
Mr. Harrison:
ReplyDeleteYour good buddy Baker also says that the Council cannot cut specific items from the Exec's proposed budget. That's absurd.
FYI- in the budget data that Pollitt presented at the get-go there's a line item "life insurance" that was funded in prior years but is zeroed out in this one -- can't say he kept it a secret until now, can we?
ReplyDeleteG.A.
ReplyDeleteMaybe if you had not spend all that time belly-aching about the Bored of Ed. you would have discovered this scam sooner!
Let's wait until Bill McCain once again proclaims that he has "done the math."
ReplyDeleteDoes Pollitt believe that he is King Richard I?
ReplyDeleteWell, he's no Napoleon (wasn't he a friend of yours?).
King Richard I -- "Boss Hogg" is more his style.
ReplyDeleteWhat will Ricky's supporters in the Greater Salisbury Committee say about this scam?
ReplyDeleteAll he's trying to tell everyone is that the cty. will not be paying for insurance , instead he has been tap dancing around the issue. he doesn't have the ball$ to say so. Sounds like he went to school with obamie , Bull$hit artist. Bend over , here it comes.
ReplyDeletegoogle death benefit sinking fund
ReplyDeleteYes, Pollitt does think he is King of Wicomico County and no one can tell him how to do a budget.
ReplyDeleteNapoleon was surrounded by wayward women who were more ungovernable than his empire.
ReplyDelete3:05pm If there were going to be a change in the employees benefits this should of been brought out during the budget sessions with the county council and discussed.
ReplyDeleteJust deducting it as a line item doesn't give much credibility to transparency from the exec. office.
It seems pretty transparent to me if you can read. And to answer your question, G.A. NO, he does not. You fuss when he doesn't do something and you whine when he does. Some people just can't win and some people just can never be happy.
ReplyDeleteSo, to all the voters who voted for Rick, how's that vote doing for you now?
ReplyDeleteElecting Rick was still the better choice over Alessi. Now we have Alessi's shadowman running for Rick's seat. We'll have more of the same if Rick is reelected. If Ollinger is elected we'll have the republican version of Rick Pollitt. There is no winning with these two running.
ReplyDeleteIs there not one person that is not morally bankrupt, that is fiscally responsible and willing to be held accountable that will run for this seat?
With Mr McCain's math skills maybe he should replace Pat Peterson
ReplyDeleteAnon 1503 -
ReplyDeleteEd Baker NEVER said that the council could not cut specific line items from the budget. It is true that the charter and the state constitution prohibit the council from doing certain things. They cannot reduce or increase their salaries nor that of the executive. Evidently the charter prohibits them from eliminating a specific position. That is why the council voted to cut the $60,000 from the Exec's office.
Anon 2215 -
I'm not whining about anything. I don't even care that he cut the expense for the insurance. The point is that there is a potential liability that he is creating without the consent of the council.
This is typical of the way Wicomico county has been run for years. It is time for major change. There is still the issue do the county workers have a diability plan that works ? Can they live off of the benefit ? It just get more clouded daily by misinformation. This death benefit is pennies in the grand scheme of things. Why cut there when there is so much other fat ?
ReplyDeleteI am actively pursuring a great person to run for the position. I just hope they decide to do it.
We need an honest person with the beat interest of all involved. This special attention given to a certain class is just wrong on all levels.
I had a great deal of faith in Pollitt and this council. I truly did. They seemed to have the integrity needed. They have all let the people of this county down.
Clean sweep in November !!!!!
One very disgusted tax payer.
It does not matter what your insurance is because racism still exists in the healthcare profession. Next time I will use the services of another facility besides PRMC. If you make jokes about a minority patient's condition in front of them, they will not seek treatment becuase of that behavior.
ReplyDelete