MAPLETON – The township here is adopting a group benefit package for members of council.
Councillors Amanda Reid, Michael Martin, Marlene Ottens and Lori Woodham voted in favour of approving the benefit package, while Mayor Gregg Davidson was opposed.
A provision of $28,750 has been included in the 2025 budget for health benefits for members of council.
Last March, Mapleton’s finance team prepared and presented a report about a health benefit plan for councillors.
At that time, staff were directed to defer discussion and decision about adopting the plan to the 2025 budget process.
This plan will provide the mayor and councillors “with the same health, travel and dental coverage as an active employee, with premiums at the same rates as incurred for any other active employee,” states a finance department report presented to council on Dec. 10.
“The health benefit plan for council members would also provide a flat $10,000 or $20,000 life and [accidental death and dismemberment] benefit, but no long-term or short-term disability benefits,” the report continues.
The township’s group benefits program is part of the larger Wellington County consortium plan, which includes the county as well as each of the seven lower-tier municipalities and is underwritten by Manulife.
“The renewal rates are negotiated on the township’s behalf by third party benefits consultants at Mosey & Mosey,” the report states.
Finance director Patrick Kelly said the township “achieves significant savings” by working with the third party consultant.
Opting out
The benefit coverage is mandatory and requires 100% participation for eligible councillors, the report states.
Kelly noted “the option to opt out of the program is only available if the member were to have comparable benefits through a spouse or through a previous employer through retirement benefits.”
The report notes that as a member of county council, Davidson can opt out of the township’s extended health care and dental coverage.
“However, the mayor cannot elect to opt out of basic life insurance and [accidental death and dismemberment] coverage.
“The cost reduction of the opt-out is estimated at approximately $5,400 per year.”
Benefits for senior members
Woodham said while she understands the reasoning for including benefit packages for councils, in the hopes of “attracting a younger council going forward and committing to a four-year term,” she has concerns about how premiums will increase as councillors age.
“I can speak for myself, because I’ll be 65 in two years, and I do plan on running again – hopefully I get back in,” she said. “So, all of a sudden then would the premiums skyrocket?
“We currently have a young council on this horseshoe … I’d hate to see that the budget all of a sudden increase substantially over the next few years.”
Woodham asked Kelly how long benefits last, and if they increase annually and will be renewed automatically each year.
“Benefits are provided while the member is an elected member of council,” Kelly said.
“Premiums are taken to market and renegotiated and renewed on an annual basis.”
He said he believes premiums may increase for councillors over 65 years old.
“It ultimately would come down to what’s included in the benefits package post age 65 – we would have to work with our benefits consultant to determine that,” he added.
“I think that if there were any significant changes with in it that would have a budgetary impact, that would be brought forward as part of the budget process and council can determine whether continuation of group benefits still makes sense.”
Woodham asked if the question of council benefits would come up annually during budget discussions and Kelly said no, but “any budget line when we have significant increases that are a substantial impact to the overall levy, we would bring forward further information.
“For example, if our premium for group benefits for members of council doubled based on one member’s age and requirements, yes I think that’s worth being raised,” he explained.
“The detailed budget is always provided to council – they’re free to ask questions on any line, but we would draw specific attention as part of our budget presentation if it had a significant impact.”
Mayor’s comments, questions
Davidson asked Kelly if there are other, less costly options beside benefits, such as a per diem that could be imposed.
Kelly said there are other options that staff have not priced out, such as having health care spending accounts.
He said staff would “negotiate with our benefits provider what type of program makes the most sense.
“If it’s similar and within our budget and it’s the best option for members of council we would proceed and notify members accordingly.”
Davidson noted salaries for members of council increased as of Jan. 1, 2024.
“The prescribed system of ongoing council remuneration was every four years,” he said.
“By doing this, we’re going outside of the policy we created to do it every four years.
“So I’m not supportive of that because the next time that council looks at wages, including benefits, because that adds on to the cost that our municipal taxpayer pays, is 2027,” Davidson said.
“So I think that this should wait until 2027 to come forward.”
‘Carrot and stick’
Ottens said when the question of benefits for council members first came up, she wondered if it was necessary.
“But I do believe that it’s probably a good carrot and stick in the future, as councillor Woodham said, for younger ones especially,” said Ottens.
She noted many Mapleton residents are self employed, and do not have benefits otherwise, “so this is just something that might be that little extra thing to get people to consider running.
“It does feel weird, voting for something that benefits yourself as a council person, but I do see the benefit in the long term of adding to the attraction package and getting good people to run.”
Reid added, “For retaining and attracting councillors, this is something I think we’re going to see more of.”
