What's Up Huntsville Lake of Bays July 2011 - Whatsupmuskoka.com
What's Up Huntsville Lake of Bays July 2011 - Whatsupmuskoka.com
What's Up Huntsville Lake of Bays July 2011 - Whatsupmuskoka.com
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<strong>Huntsville</strong> goes solo on employee benefits<br />
By Karen Wehrstein<br />
After traditionally pooling with the<br />
District <strong>of</strong> Muskoka and the other area<br />
municipalities to provide extended<br />
health, dental and disability plans for its<br />
employees, the Town <strong>of</strong> <strong>Huntsville</strong> has<br />
abandoned the arrangement to contract<br />
with an outside provider.<br />
“We’ve been involved with the district<br />
for a number <strong>of</strong> years,” says town councillor<br />
Chris Zanetti, who heads up<br />
<strong>Huntsville</strong>’s corporate services <strong>com</strong>mittee.<br />
“We thought that we should shop it<br />
and see if we could get a better rate and<br />
we certainly found that: a savings <strong>of</strong><br />
about $30,000. That’s substantial, so we<br />
opted out <strong>of</strong> the district plan.”<br />
According to Zanetti, Selectpath Benefits<br />
& Financial is able to provide the<br />
same benefits package to town employees<br />
for that much less cost. The move was<br />
passed by the <strong>com</strong>mittee on May 30 and<br />
town council on June 20. It <strong>com</strong>es into<br />
effect immediately.<br />
An amount <strong>of</strong> about $230,000 that<br />
was being held in an insurance reserve<br />
fund by the district for the Town <strong>of</strong><br />
<strong>Huntsville</strong> will also be returned to the<br />
town. Zanetti says it will be continue to<br />
be kept as an insurance reserve.<br />
Stephen Cairns, <strong>com</strong>missioner <strong>of</strong><br />
finance and corporate services, continues<br />
to believe the strategy <strong>of</strong> pooling insurance<br />
money is best. “If you’re self-insured<br />
and have a fairly regular and predictable<br />
cost, you save in not paying the middle<br />
man,” he says, explaining that the district<br />
“We thought that we should<br />
shop it and see if we could<br />
get a better rate ...”<br />
hires an outside agency to manage the<br />
program, but otherwise no administration<br />
fee, extra overhead or pr<strong>of</strong>its are<br />
drawn from the funds. “We pay the actual<br />
cost rather than an external premium.”<br />
Cairns is not concerned about one<br />
town leaving the plan. “<strong>Huntsville</strong> not<br />
being there is not going to materially<br />
affect us one way or another,” he says.<br />
Cairns notes the district and the<br />
municipalities, other than <strong>Huntsville</strong>,<br />
will be putting out a request for proposals<br />
for life and long-term disability insurance<br />
for employees. Selectpath will be<br />
one <strong>of</strong> the carriers it approaches, he says,<br />
since it’s one <strong>of</strong> the main carriers.<br />
“We might find a similar saving,” he<br />
says, noting that the request will go out<br />
once all relevant information is gathered<br />
from the municipalities.<br />
But he feels the medical and dental<br />
plans should stay in the shared self-insurance<br />
program.<br />
“I’d have to have a very good documented<br />
business case to move away from<br />
that concept, because it’s served us well in<br />
the past,” he says.<br />
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