KEYSER — State problems with a public-employee insurance fund have trickled down to the municipal level, with Keyser officials taking the first steps Wednesday toward withdrawing from the state insurance system in advance of legislative action that may force the city to do so.
The Public Employees Insurance Agency was the subject of a recent special session of the West Virginia Legislature, in which Gov. Joe Manchin attempted to apply a short-term fix to outstanding liabilities related to retirement obligations. However, Senate leaders nixed the proposal, saying the issue requires a long-term solution, presumably to be offered this winter during the Legislature's regular session.
David Barton, who is advising the council on the matter, said he met earlier this week with Senate leaders involved in the PEIA issue, and they are expecting action on the matter in the upcoming session.
“This is going to be coming in January or February,” he said.
One possible solution, Barton said, may
be to force counties, school systems and municipalities out of PEIA, so that they obtain employee health and other insurance on their own.
Baron said the city should actually save money on insurance if it leaves PEIA.
In anticipation of such a move, the city council directed supervisory staff to have the city's 41 employees begin completing online health questionnaire forms that will make it easier for the city to solicit bids for health insurance.
“It's something we need to start soon, like yesterday,” said Councilman Dave Sowers.
Mike Ryan, the city's accountant, supported moving forward with the health surveys, saying the state has been known to move quickly on such issues, and give little time for municipalities to come into compliance with their decision.
“It's hard to get a good read on what's going on...,” Ryan said. As long as they don't tell us Friday that on Monday (we need to take action), we'll be OK.”
In addition to having employees fill out the questionnaires, the city council also approved $2,600 for an actuarial study to determine the city's insurance needs and related expenses.
The next meeting of the Keyser Mayor and City Council will be Wednesday, Dec. 23 at 4:30 p.m.
