ORDINANCE NO. 05-18

AN ORDINANCE ELIMINATING LIFETIME HEALTH

BENEFITS FOR EMPLOYEES HIRED AFTER

NOVEMBER 1, 2005.

WHEREAS, the Borough of Hillsdale has heretofore had a practice of providing lifetime health benefits for employees who retire from employment with the Borough with more than 25 years of service with a Service Retirement, Disability Retirement, or under the terms of a Collective Bargaining Agreement or personal services contract; and

WHEREAS, the Mayor and Council of the Borough of Hillsdale recognize that due to the rapidly escalating cost of health care, this benefit has placed, and will, in the future, place a significant tax burden on our residents; and

WHEREAS, the Mayor and Council of the Borough of Hillsdale have concluded that because of this additional tax burden, this benefit should no longer be offered by the Borough to employees hired from and after November 1, 2005 unless otherwise provided for by a Collective Bargaining Agreement or personal services contract;

NOW, THEREFORE, BE IT ORDAINED, that any and all employees hired by the Borough of Hillsdale from and after November 1, 2005, shall not receive health care benefits after retirement payable by the Borough, except that, in the event that there is a conflict between this ordinance and any Collective Bargaining Agreement, personnel services contract, or federal or state law, the terms and conditions of such Collective Bargaining Agreement, contract or law shall prevail. In all other cases, the provisions of this ordinance shall prevail;

BE IT FURTHER ORDAINED, that this resolution does not modify, change, or alter the Borough’s practice of permitting employees who retire from employment without alternative health insurance to purchase such insurance at their expense through the Borough’s health care insurance plan using the payment procedure set forth by the Borough’s Chief Financial Officer.

BE IT FURTHER ORDAINED, that all ordinances and resolutions inconsistent with the provisions of this ordinance are hereby repealed as to such inconsistencies.

BE IT FURTHER ORDAINED, that this Ordinance shall take effect immediately after final passage (adoption), approval and publication of notice thereof as required by law, and the provisions of this Ordinance shall be retroactive to November 1, 2005.