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Road Commission OKs change to long-term disability option

Cheboygan Daily Tribune - 10/20/2017

Oct. 20--CHEBOYGAN COUNTY- The Cheboygan County Road Commission Board voted unanimously Thursday morning to change the long-term disability options offered to its employees and approved the rate change.

"We have a couple of options to look at," said Road Commission Engineer and Manager Brent Shank. "One that stays the same or we can change."

Every couple of years, this matter comes up to the road commission regarding the long-term disability that is offered to its employees. The board has the option to either bid out the service to a different company or have its current company look at its premiums.

"If we stay with what we have, the only change, it would go up to 91 cents per $100 of payroll," said Road Commission Clerk Dana Stempky. "Right now we're at 79 cents."

If the road commission were to stay with what it currently has, it would be about an additional $150 per month in cost.

Another option the road commission had was to cap the length of time its employees were able to draw the disability to five years.

Stempky said the long term disability the road commission currently offers to its employees is for life.

"Say somebody gets hurt and they need that, they would have that forever," she said. "The option that we would be looking at would be a five year duration. So, if somebody got hurt, it would cover for five years."

Usually, after two years of being on long-term disability, a person is able to get Social Security Disability. Once the person applies for the Social Security Disability and is awarded it, their disability they were drawing from their work would cease.

"So that would be the change, either cover it for life or cover it for five years and like I said, after two years, you can usually get Social Security Disability," said Stempky.

If the road commission were to go with the five year cap, it would hold its costs to the 79 cents per $100 of payroll and there would be a three year lock in rate.

Most of the employees of the road commission do not stay until they are 65 and can draw regular Social Security payments anyway. The long term disability plans are only available to them when they are working.

Several road commission members said they didn't mind switching to the five-year plan.

"I don't have any problem with it, as long as they're safe and not leaving somebody disabled with no income coming in," said Road Commission Vice-Chair Dave Brandt.

Once employees at the road commission reach a certain point and are vested with the Municipal Employees Retirement System and need to go on disability they will be able to draw from their pensions as well.

The board members felt going with the five-year cap was a good option for them to take, so they voted unanimously to change that option to be offered to their employees.

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(c)2017 Cheboygan Daily Tribune, Mich.

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