Personnel committee adopts pretax-insurance language for employee handbook

On Sept. 14 the Charles Town Personnel Committee voted to adopt language placing existing employees’ group insurance on a pretax basis and adding the language to the employee handbook.

Interim City Manager Alyssa Meeks said a recent hire revealed the city had been post-taxing some employees even though the benefits package requires pretax treatment. Meeks said staff performed corrective action and recommended inserting handbook language to document the conversion and employees’ right to opt out. “So with the latest hire, of the long range planner, we discovered … part of our insurance package, you actually have to opt out to have post tax,” Meeks said, explaining the change and why employees near retirement may prefer to remain post-tax because pretax deductions lower final average salary used for pension calculations.

A committee member moved to “adopt the pretax pretax insurance, to be included into the employee handbook as suggested by staff.” The Chair seconded the motion and asked for vocal assent; members replied in favor and the motion carried by voice vote. Committee discussion noted the change does not alter benefit levels but will increase take-home pay for some employees and that new hires receive the correct pretax treatment through the Millennium onboarding package.

Committee members asked that the handbook language be clear about employees’ opt-out right and any caps or eligibility rules; staff said Stephanie would recommend handbook wording for legal review. The committee did not record a roll-call tally in the transcript; the motion was approved by voice vote at the meeting.