Friday, September 12, 2014

Council gains benefits

by Richard Rolke - Vernon Morning Star posted Sep 12, 2014 at 1:00 AM
The financial package for future Vernon politicians is being expanded. It’s been decided by current council that while those elected Nov. 15 will not get a raise, they will be able to access benefits for the first time ever. “We’re always talking about attracting younger people,” said Coun. Juliette Cunningham in support of benefits, including medical, dental and disability. “Some people have to take away time from their business (to be on council). It’s one way to balance out the inequities for the time invested.” Mayor Rob Sawatzky, who is not seeking re-election, supports the addition of taxable benefits for elected officials. “We need to make it less difficult and less costly for people to step up,” he said. “There are financial impediments to running for elected office. This is one less opportunity for people to turn the opportunity down.” Pensions are not included in the benefits package, but Sawatzky says the other financial incentives may encourage someone to plan for retirement. “You can fund a private pension because there’s less financial drag on you,” he said. Opposition came from Coun. Bob Spiers, who says benefits for council could increase city coasts by $40,000 a year. “It seems like a heck of a change all in one year,” he said.
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Don Quixote Note:
The $40,000 amount for the benefits cost is calculated as if all 7 members of Council were eligible for Family Coverage.  A more likely cost is that all 7 members would have spousal coverage only and the cost of that option would be about $26,694. An all single Council could cost only $13,487 extra.

  • There will be a potential pay hike effective Dec 1, 2014 for the new Council. It will be the August B.C. CPI.  The 2014 B.C. July CPI was at 1.4% and the August 2013 BC CPI was a negative -1%.
  • Council members will still be eligible to claim $137 per Vernon Committee meeting that they attend as the appointed Council Rep. (1/3 tax free)
  • The current annual salary for the Councillors is $831.86 biweekly ($21,628 Annually of which 1/3 is tax free.
  • The current annual salary for the Mayor is $2,578.67 biweekly ($67,045 Annually of which 1/3 is tax free.

1 comment:

Shawn Lee said...

Dental and health benefits are surely a desirable "perk" for full time employees. However, with perhaps the exception of the Mayor the job of councillor, while demanding, is by no means full time. Perhaps a small increase base salary would have been more appropriate. Then it would have been clearer what the actual costs to the taxpayer will be. Most dental plans operate on a cost plus basis meaning the more a plan is used the more it costs the employer: as I understand the third party business model. Cheers Shawn Lee a Vernon Taxpayer