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home : latest news : local October 13, 2015

4/23/2013 6:00:00 AM
Kingman employees get insurance money back

KINGMAN - City employees will receive a partial reimbursement of the money they contributed to health care costs.

About 170 city employees with an average five years of employment will receive $1,000. Eighty-eight others with about 13 years of service on average will receive $1,500, and 46 with about 25 years on average will receive $2,000.

The money became available last year when Kingman city employees joined forces with those in Bullhead City and Lake Havasu City to form the Northern Arizona Employee Benefit Trust in an effort to curb health insurance hikes.

The former employment benefit reserve fund has been dormant for about a year and the city has paid all of the final bills associated with the fund.

Councilman Richard Anderson worried the public might object to the reimbursement if it wasn't explained correctly.

Mayor John Salem pointed out the money belongs to the employees, not taxpayers.

The payments are a one-time deal.

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Reader Comments

Posted: Friday, May 3, 2013
Article comment by: Mike Hawk

When will the employees get their money or is the city sitting on the account to make more profit on the interest. If so where will that money go? If they are sitting on it to make money off the interest I hope it goes back to cover next years raise in premium cost! I also understand that it will be paid in a normal pay period, taxed then over taxed as it will increase the employees tax bracket. So in other words out of the refund they will see very little of it. Pay it in a separate check and or give the employees the opportunity if it is placed in a normal pay check to claim exempt, so they can receive most of the refund that they paid (pre-tax).

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