Reprinted from The Trumbull Times © Copyright 2010
January 7, 2010

By Donald Eng

Determined to make good on his campaign promise to find $1 million in operational savings by March, First Selectman Tim Herbst announced Monday that he and 38 other town employees and elected officials would no longer be receiving their health care coverage for free.

"In these challenging economic times, when some people cannot even afford their health care coverage, having a handful of employees receiving free health care on the taxpayers' dime sets a poor example," he said.

According to Town Treasurer John Ponzio, he discovered that several dozen town employees, a number he later pegged at 39, received their health care coverage for free, paying only $4 a month for a dental plan.

The employees in question are an eclectic group, ranging from the 20 school nurses to the Tashua Knolls greenskeeper and a police department secretary. Also, the first selectman, Town Clerk and treasurer received the free plan, as did all four former town attorneys.

"I filled out my W2 and health care plan forms, and I asked how much I would have withheld for the health care plan," Ponzio said. "There was this long silence, and then they told me it was free."

Herbst said the 39 free health care plans cost the town $767,000 annually. Monthly costs of the plans ranged from $713 for an individual to $1,925 for a family.

"Today, this practice ends," he said. The 39 will begin payments into their coverage, he said. By July all 39 will be paying 11% of the cost, a number he reached by averaging the cost to employees of the town's various unions.

Instituting the 11% premium will save the town more than $68,000. Herbst also said that reducing the number of Town Hall employees and the decision by several administration hires not to participate in the town's health plan would save an additional $145,700. Herbst's secretary opted out of the plan, as did two of the three new town attorneys.

Town's ‘best kept secret'

Herbst said he did not know how long the practice of giving free health coverage to a handful of employees had gone on, but suggested it had been at least eight years, and possibly quite a bit longer.

A fact sheet he distributed showed First Selectman Paul Timpanelli in 1987 allowed town employees who left the town to stay on the health care plan by picking up the payments on their premiums. The memo suggests the health care plan was already well-established 22 years ago.

"It was the best kept secret in Trumbull," he said. "I was shocked when I learned about it."

According to Herbst, some department heads were paying premiums while completely unaware that their assistants were receiving their health coverage for free.

Herbst also suggested his predecessor, Ray Baldwin, had been less than up-front about the issue during union negotiations in 2009. Negotiations with the town unions for increased premium payments saved the town more than $520,000 last year.

In a series of memos dated March 20, April 8, April 28, July 9 and Sept. 10, union representative Wayne Gilbert requested total monthly medical insurance premiums for administrative staff "including, but not limited to the first selectman."

Liz Smith, Baldwin's executive assistant, responded on Sept. 11. In her memo, she included information for the director of golf operations at Tashua Knolls, Police Chief Tom Kiely and the two deputy chiefs, all of whom paid the standard premiums for town employees.

Her reply did not include information for Baldwin but suggested Gilbert could find the requested information on the town Web site.

Asked if he thought Baldwin had been evasive in his responses during the health care negotiations, Ponzio said, "I think that's putting it pretty mildly."

‘A flagrant lie'

After reports of Herbst's comments reached various media outlets, a furious Baldwin struck back at the insinuation that he had used the health care plan to give select employees a hidden benefit.

"People get the impression that I created this situation, but it has been the practice for 30 years," he said.

The first selectman and administrative staff have had the same work agreement since 1980, covering five administrations, Baldwin said.

The free health care was one of the perks, but Baldwin measured it against the fact that the office staff did not receive paid vacations or sick time. Over the years, other employees received the free plans through negotiations.

"It was almost like with the town-owned cars, where at the time it was cheaper than giving them a salary increase," Baldwin said. "It was an issue that we were aware of and had planned to revisit."

Baldwin also pointed out that he had not added to the total number of employees with their health care costs covered by the town.

But his most pointed comments were in regard to claims that the health plans were somehow secret.

"That's absolutely bull___, a flagrant lie," he said. "If Tim doesn't know about something, that doesn't make it a secret."

Many people around Town Hall knew of the situation, including Republican Registrar of Voters Bill Holden, Baldwin said.

"Bill Holden lobbied hard to get free health care for his assistant," Baldwin said. In addition, Herbst's running mate, Town Clerk Suzanne Burr Monaco, had previously held the office from 2003-05.

She would have known that the town was paying all of her medical coverage, Baldwin said.

"For him to say that we were being sneaky about it is a complete lie," Baldwin said.