Why Strong Benefits Matter

Municipalities like ours rely on skilled, licensed employees to maintain cost efficiency and service quality. By investing in long-term staff, we gain significant advantages that benefit the Township as a whole, including:

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1.    Institutional Knowledge: Long-term employees develop deep insights into the community and its needs, leading to better decision-making and enhanced service delivery.

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2.    Continuity and Stability: Consistent staffing ensures stable service and project management, building trust within the community.

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3.    Cost Efficiency: Long-standing employees require less training and orientation, reducing onboarding costs while enhancing operational efficiency.

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4.    Strong Relationships: Employees build meaningful relationships with residents and stakeholders over time, improving communication and collaboration.

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5.    Cultural Cohesion: A stable workforce maintains a positive organizational culture, boosting morale and engagement across the team.

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6.    Retention of Skills: Experienced employees bring specialized skills that are difficult to replace, ensuring continuity in critical areas.

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7.    Leadership Development: Long-term employees mentor new staff, fostering leadership growth and smooth knowledge transfer.

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8.    Community Commitment: Employees deeply rooted in the community are often more dedicated to its well-being, providing thoughtful and committed service.

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Many employees have retired in recent years, and we anticipate more retirements in the coming years. As such, it is vital to retain the institutional knowledge of our current employees and pass it on to the next generation of staff.

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Clay Township’s Healthcare Plan

Clay Township offers one comprehensive medical plan for all full-time employees, partly funded through a Health Reimbursement Arrangement (HRA) managed by a third party. This HRA approach helps lower premiums, ensuring coverage for those who need it while reducing costs for those who do not.

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Advantages of Health Reimbursement Arrangements (HRAs)

For Employers:

·         Cost Control: HRAs allow employers to set budgets for employee health expenses, making it easier to manage costs.

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·         Tax Benefits: Employer contributions are tax-deductible, reducing tax liabilities.

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·         Flexibility: HRAs can be tailored to meet the workforce's specific needs.

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·         Attraction and Retention: HRAs enhance employee benefit packages, helping attract and retain top talent.

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·         No Payroll Taxes: Employer contributions to HRAs are not subject to payroll taxes.

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For Employees:

·         Medical Expense Reimbursement: Employees can use HRA funds for qualified medical expenses, reducing out-of-pocket costs.

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·         Tax-Free Contributions: HRA reimbursements are tax-free, offering significant savings.

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·         Personalization: Employees have the flexibility to use HRA funds as needed.

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·         Roll Over Funds: Unused funds may roll over to the next year, providing financial security.

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·         Wellness Incentives: Some HRAs include incentives for healthy behaviors, encouraging employees to participate in wellness programs.

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Overall, HRAs create a win-win scenario, promoting better health outcomes while controlling costs effectively.

Opt-Out Payments

Clay Township also offers an "Opt-Out" payment for employees who choose not to use the Township-sponsored healthcare plan, often because they have alternative coverage (through a spouse, for example). This option provides additional benefits:

·         Cost Savings: Employers save on premiums and administrative costs associated with managing health plans.

·         Flexibility: Employees can select coverage that better suits their needs.

·         Attracting Talent: Opt-out payments make the organization more appealing to potential hires with external coverage.

·         Compliance: This option helps manage healthcare obligations effectively.

·         Employee Satisfaction: Offering choice leads to increased satisfaction, allowing employees to opt-out if they prefer alternative coverage.

By investing in our employees through robust benefits like these, Clay Township ensures a healthier, more engaged workforce, which in turn allows us to serve our residents more effectively and meet the evolving needs of our community.