WILDWOOD CREST – Former Wildwood Crest Commissioner Joyce Gould is seeking enforcement of a borough ordinance stating it would pay her health insurance premiums since she “retired” Jan. 31, 2022.
Gould, 78, served seven terms as a Wildwood Crest commissioner, including four years as mayor, before losing her last bid for reelection in November 2021.
Gould brought the matter of health care premiums to the attention of the borough after she started receiving monthly bills for $908.77 from the state Division of Pensions and Benefits.
From January through December 2021, Gould was billed $10,905.24 in health care premiums for herself and her husband. The monthly amount increased to $954.34 this month.
The borough’s labor counsel, William Blaney, said this is not a matter of animosity, it is a purely legal matter, where the borough is in between Gould and the state pension system.
Gould was first elected in 1989 when, Blaney said, it was less expensive to offer benefits to some elected or appointed officials. As of May 2010, an elected official had to work at least 35 hours per week to be eligible for health benefits.
“She predates that statute,” Blaney said.
Gould contacted the borough after receiving the first bill from the state Division of Pension and Benefits. The borough then sought clarification from the state Department of Treasury’s Public Employees Retirement System (PERS) as to whether it had an obligation to pay Gould’s health care premiums. PERS informed the borough that Gould did not meet the minimum 300 months or 25 years of service.
Gould’s attorney, Richard L. Press, of Pleasantville, countered that Gould was eligible based on her age and more than 15 years of service. Press said differing responses from PERS have nothing to do with Gould’s statutory entitlements.
Press cited NJSA 40A:10-23, which states an employer, such as a municipality, may choose to pass a resolution authorizing it to cover the entire cost of health care premiums for employees who retired with at least 15 years of service and are at least 62 years old.
He also cited a provision that says health care premiums may be covered for an employee having 25 years of service.
He said that, in either case, Gould is eligible to have her health care premiums paid. Since 1985, Wildwood Crest has enacted such resolutions for retired employees and their dependents.
Press said Gould was one of three employees exempted when the borough determined it would not continue to pay employee health care premiums after Jan. 1, 2015.
Blaney said that under the previous statute, elected officials were not required to be full-time employees to receive health care benefits. That changed in 2010, but Gould was grandfathered under the old statute. Blaney said there is still some confusion as to whether Gould is entitled to have retirement health care premiums paid by the borough.
“The state says she is not, and we have to go by what the state says,” Blaney said. “Now, it’s up to the court to decide.”
Blaney said the case is somewhat complicated because Gould had filed for retirement once before.
“She would have gotten (benefits) if she hadn’t retired early. She took retirement because she qualified – it was like 12 years – but she met the age requirement,” Blaney said. “It’s really a nuanced issue, whether it’s pensionable time or required time.”
Press filed a motion for a summary judgment Jan. 17 with Superior Court Assignment Judge Michael Blee (AJSC), with a management conference scheduled for the following day.
Press said in his court brief that NJDS 52:14-17.38(d) requires the borough to provide the appropriate certification (to the state) of premium rates. Once done, the borough then assumes the entire cost of the plaintiff’s retirement benefits and pays all premiums directly.
He said the borough made the decision to seek PERS approval as opposed to enforcing its ordinance by a vote of the commissioners. The suit claims this was intentional.
Gould is seeking payment of health care premiums, reimbursement for premiums paid, and attorney’s fees.
Thoughts? Questions? Contact the author, Christopher South, at csouth@cmcherald.com or 609-886-8600, ext. 128.
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