Everett votes to extend retiree health benefits

EVERETT – City employees thinking of leaving their jobs now have an incentive to do so.

The City Council on Wednesday unanimously voted to allow city workers to keep city-paid health insurance up to 18 months after leaving their jobs.

Council members and Mayor Ray Stephanson hope that the move will let employees retire when they want to without fearing the loss of health benefits. And they hope that it will save the city money and avoid layoffs.

Stephanson said the city is looking at ways to close a $3.7 million gap between revenues and expenses, and “this gives people an opportunity for voluntary separation rather than involuntary separation.”

The city has no idea how many employees will take advantage of the offer, said Sharon DeHaan, director of the Department of Human Resources. This is apparently the first time the city has offered such an incentive, she said. It is open to employees of all ages.

Family insurance coverage for an employee is worth an average of about $1,000 a month.

“This is a great benefit if you’re thinking about leaving or maybe for people who want to have a career change,” DeHaan said.

Councilman Doug Campbell said it’s unclear whether the city would save a lot of money under the new policy. But he said it sends a message to employees that the city is trying to help employees even after they leave city government, and that it is trying to avoid further layoffs.