Can we finally negotiate lower
health insurance contributions?
Do we now have the authority to negotiate
lower health insurance contributions under
Chapter 78? That is the question many PBA
Locals and many law enforcement officers
are now asking as they complete the four
years of escalating contributions required by
Chapter 78.
For most, the answer is yes. Most jurisdic-
tions have completed the maximum level by
this time. Under the current state of the law, if
the four-year progression to reach the maxi-
mum contribution level has been completed,
Locals have the right to negotiate for lower
contribution levels if the collective bargaining agreement un-
der which you completed the fourth year has expired or will ex-
pire. Of course, whether a Local will be successful in negotiating
lower contribution levels depends upon a variety of different
factors.
It is important to understand the background. Under Chap-
ter 78, health insurance contributions increased each year un-
til the maximum level of contributions was reached after four
years. The maximum for most law enforcement officers is 35
percent of the cost of coverage. A number of questions arose
under these provisions of Chapter 78: Were law enforcement of-
ficers required to complete the fourth year at the maximum lev-
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el before negotiations could take place or was
it at the start of the fourth year? If the fourth
year of contributions was reached during the
term of an existing contract, could negotia-
tions take place before the expiration of the
contract? If the fourth year was reached or
completed after the expiration of an existing
contract and during what would be the term
of the next contract, could the Local negotiate
for lower contribution levels after the fourth
year was reached?
PERC answered these questions in an un-
fortunate 2015 decision involving the Clem-
enton Board of Education. In that case, the board and education
association were parties to an agreement which was effective
from July 1, 2011 through June 30, 2014. The fourth year of the
Chapter 78 contributions began on July 1, 2014, which would
have been the first year of a successor agreement. The agree-
ment that expired on June 30, 2014 included a provision set-
ting employee health insurance contributions at 1.5 percent of
base salary, which was the contribution level set by the statute
in effect before Chapter 78. This contractual language did not
change after Chapter 78 took effect in June 2011.
The education association argued that the contribution levels
should automatically revert to 1.5 percent of base salary once