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Around Osceola
Friday, 12 March 2010 06:49
By Juliana A. Torres
Staff Writer

City of Kissimmee employees will be able to buy health and dental insurance for their unmarried domestic partners, per a policy change city commissioners approved on a 4-1 vote Tuesday.

The new policy, which was spearheaded by Commissioner Cheryl Grieb, requires that the employee provide proof of a single household in order to qualify. The benefit can extend to same-sex or opposite-sex partners of city employees.

“We do not pay for dependent insurance, so all the cost would be on the employee if they chose to do this,” City Manager Mark Durbin said.

The only minimal cost to the city could come in the Internal Revenue Service levying a tax on the fair market value of the new benefit offered by the city. The city is required to match any employee Social Security tax, meaning the city would have to pay 7.65 percent of whatever the IRS determines is the fair market value of the offered benefit, aside from the cost of the insurance itself.

“We don’t know at this point what the IRS will determine the fair market value is,” Durbin said, adding that Personnel Director Beth Stefek estimated that expense to come to about $100 to $140 a year.

Durbin also said that city employees had not been surveyed to find out if any would take advantage of the new benefit.

Local businessman Ruben De Jesus presented a petition of businesses along U.S. Highway 192 who were in favor of the additional benefit.

“We believe that this is a health and equality issue,” De Jesus said. “I think it will give our city a more competitive edge amongst others by adding extra benefits.”

He added that he would “almost guarantee” that employees would take advantage of the new benefit.

“Some people might be afraid or timid to come forward to request such an issue due to the fact that it’s a sensitive subject,” De Jesus said.

Resident Dan Hupert said he thought the city should try extending the benefit not just to city employees but all city residents.

“I think you could make Kissimmee stand out and be known for something even better than what it is,” he said, giving his support for the proposal toward city employees. “I don’t see a negative in this.”

Several residents of Kissimmee also gave their opinions on the issue in a forum Grieb set up for locals at kissimmeeforum.com.

Jeremy Lanier, of Lanier’s Antiques, gave his support for the policy, citing his own experience with the Disney company, which was one of the first companies to provide health insurance to domestic partners.

“Because of this policy, my partner was provided with wonderful healthcare, even up to the last days of his life,” he wrote. “Extracting all religious ideologies from the issue, allowing health benefits for all couples, regardless of whether they are male and female in makeup or otherwise, is a smart and fair business decision. I personally feel it is also a decision on which the God I know and love would look on with approval.”

City commissioners did not spend much time discussing the issue before voting.

“I know some elderly folks who happen to live together and they have to live together because of financial considerations,” Mayor Jim Swan said. “Some of them don’t have any health care at all. I see this as a potential option for them to at least get some. It’s at their expense not ours. I’m for moving this thing forward.”

Commissioners decided not to extend employees’ per-paycheck stipend for insurance toward their dependents, which currently is $10 for health insurance and $5 for dental. The city could have paid the same stipend to households with domestic partnerships, which would have carried an additional annual expense of $260 for medical and $130 for dental per eligible employee.

Grieb said that not adding in the additional stipend would offset the tax the city would have to pay on the new benefit. The motion to approve the new policy did not include the stipend.

Without offering any comment, Commissioner Art Otero cast the single vote against the policy change.

 

 

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