Hyrum gives retiring city employees option of extending health insurance
HYRUM -- City employees have a new option to look forward to at retirement -- extended health insurance benefits.
The City Council voted unanimously Thursday to give city employees who retire with at least 20 years of service and at least 300 unclaimed sick days the opportunity to choose between collecting severance pay or continuing with the city's health insurance plan for up to 11 months, depending on how many sick days and vacation days they have to collect on.
This would benefit both employees and the city, said Mayor Gordon M. Olson. After taxes, only about 65 percent of the $11,000 severance pay actually makes it to the employee. For that same $11,000 they can get longer and more extensive insurance coverage through the city than they would by another plan, Olson said. In some cases, employees have a difficult time finding health insurance plans after retirement; continuing with the city's insurance for a while will allow them time to find a good insurance plan for the future.
He said the city will benefit because instead of paying out $11,000 in one lump sum to the employee, they can pay it in increments to the health insurance company while the balance remains in the bank collecting interest.
In other business, the Council granted a 15-year extension of the cable television franchise between Hyrum and InterMedia Partners Southeast providing. The council can approve additional franchises at any time, and has the right to discontinue the AT&T provider's contract if dissatisfied with their service. Most of Cache Valley is serviced by this provider
Also, the council looked at rerouting truck traffic from the residential area along 400 North to a road farther South where heavy trucks hauling cattle and other products to Miller Brothers Feed Yard, West Point Dairy and other industries in the area won't be a danger to residents. It postponed voting on the issue until a suitable alternate route is found.