Disability Insurance Kept for School Employees

by Kevin Cummings, Messenger Staff Writer

The Franklin County Board of Education decided at its September meeting to continue paying for long-term disability insurance for classified employees despite the county’s decision to cut the benefit. 

The school board voted 5-2 with one abstention to keep paying for long-term disability. Board members Mike Holmes and Lance Williams voted to stop paying the premium, and representative Gary Hanger abstained, citing lack of information.

Both the county government and county Highway Commission will no longer pay for long-term disability after the end of October, but that money will be given to employees as a pay raise. Cindy Latham, county deputy finance director, said it amounts to 10 to 14 cents per hour. The money would have been presented as a raise for school employees, as well.

She said she recommended the change because county employees rarely receive cost-of-living raises.

One of the reasons officials have cited for cutting the benefit is paying too much to the insurance company with very little paid in employee claims. The school system paid $44,600 for long-term disability insurance in 2013–14, according to county budget records. 

The numbers presented at Monday’s meeting from the insurance company showed only about $11,000 in paid claims since 2004. School board representative Adam Tucker said the claims information presented seemed extremely low and was unclear. Latham said the numbers are questionable, and county officials are scheduled to meet with the insurance company to solve the confusion.

Tucker noted that there are other reasons that he supports paying for the benefit besides the questionable numbers.

“As someone whose father had to go on long-term disability when he was in his mid-40s due to a chronic health condition, I recognize the value of having a safety net for employees and their families who are unable to work through no fault of their own,” he said. “Second, I am reluctant to eliminate employee benefits absent fiscal hardship or compelling evidence that the benefit is unnecessary or is not actually helping employees.”

Director of Schools Rebecca Sharber said the school system has about 375 classified employees.

Although the school system will continue to pay, officials are concerned that the reduction in the pool of county employees receiving the insurance will mean a higher premium.