North Castle Retirees to Pay Benefit Costs

ARMONK — North Castle retirees will lose their current vision and dental benefits and must begin contributing to their health care costs under a plan narrowly passed by the Town Board last week.
The switch, approved 3-2, will cost the average retiree about $62 per month. 

The town has about 20 retirees who will be affected by the change, and who are apparently considering legal action over it.  Supervisor Howard Arden said the plan will save about $17 million in the long-term, with an initial savings of about $100,000 this year. He said he’s not trying to burden retirees, but something had to be done to curb runaway insurance costs.

An actuarial study of North Castle in 2009 uncovered $150 million in unfunded medical liabilities, Arden said.  “This was an unsustainable process,” he said. “Something had to give, and we’re just doing it.”

The vote last week also raised the town’s retirement age from 55 to 62 and set in motion a plan that will have each town employee contribute $4 per hour to a medical fund they can access upon their retirement.

Read more: http://www.lohud.com/article/20120708/NEWS02/307080026/North-Castle-retirees-pay-benefit-costs