Westmoreland County’s salary board on Monday rescinded a policy that allowed nonunion employees to receive health benefits after retirement, a move officials said could save taxpayers up to $3.5 million annually.
The three commissioners and Controller Jeffrey Balzer voted unanimously to eliminate the program, which allowed retirees to buy into the county’s health coverage after leaving the payroll.
The move will only impact new employees; nonunion workers on the payroll before Jan. 1 will still be eligible to receive the benefit. Nonunion workers were the last group of county employees eligible for the post-retirement health care benefit.
According to Amanda Bernard, the county’s director of human resources, this policy change had previously been incorporated into labor deals with the county’s bargaining units between 2007 and 2014. Currently, about 30% of the county’s more than 1,700 employees are not members of a union and remain eligible for the benefit.
“This is in line with our existing (labor contracts) and it’s a cost savings,” said Commissioner Sean Kertes.
The benefit allows the county to split the cost of health insurance evenly with retired employees until they turn 65. Bernard noted that about 178 retired county workers are currently enrolled, costing the county approximately $3.5 million each year.
Last year, the county paid $28 million in health care benefits for employees — a figure expected to exceed $30 million in 2026.
The elimination of the benefit comes as county leaders brace for long-term financial struggles. The budget approved last month included a $15 million spending deficit that will necessitate tapping into the county’s surplus.
Commissioners stated that further cost savings will be necessary as mandated spending for human service programs continues to increase while revenues from local property taxes and service fees remain flat.
“We need to rethink the way we’re doing things. We can’t keep doing things the same way,” said Commissioner Ted Kopas.
Commissioner Doug Chew and Controller Balzer declined to comment on Monday.
Budgetary concerns previously led commissioners to furlough 125 workers in October amid a financial crunch caused by a four-month delay by state lawmakers in passing a new state budget. That impasse froze millions of dollars in state allocations, creating a cash-flow shortage for Westmoreland County and other local governments.
The county began recalling furloughed employees in December. A group of 29 workers returned to their jobs on Monday, while another 31 remain off the payroll, according to Bernard.
