JASPER, Tenn. - New rules at the state level are forcing local county and city governments to choose whether or not to continue offering a particular health and vision benefit to employees.
At the Marion County Commission's February meeting, County Mayor David Jackson said the benefit allows workers who retire from their job before the age of 65 to still get insurance coverage at their own expense.
"Under the new [Governmental Accounting Standards Board] rules, we have to show it on our books as a liability, even though we're not financing it," he said.
Marion has about 17 employees who are eligible for the benefit, and Jackson said that means $29,228 will be "shown as a paper trail and has to be carried on the books" in the next fiscal year.
"That number may increase, may decrease, going forward, depending on the number of employees who are eligible or are participating in the program," County Attorney Billy Gouger said.
"It is a little confusing," Jackson said. "It doesn't cost the county no money, but we have to show them the paper trail."
Gouger said the board had three choices to comply with the new law before March 31: continue participation in the plan, opt out completely, or approve a partial participation plan.
The downside to opting out of the program, Gouger said, is that it is a "permanent election."
"If you make that choice, you cannot opt back in at a later date," he said. "That would be a benefit that your employees currently have that they would never be able to have again."
Gouger said he didn't recommend opting out of the program "from a legal standpoint."
"That is a permanent election that you cannot reverse going forward," he said.
If the board chose partial participation, the county would continue participating in the program with employees who are already in the system and using the benefit, but it would lock out everyone else from getting the benefit in the future.
The board voted unanimously to continue its participation in the plan.
Continuing participation is a year-to-year choice.
If the board decides at a later date that the financial obligation is too much to fund the expense in Marion's budget, Gouger said county leaders could elect to opt out then.
Ryan Lewis is based in Marion County. Contact him at ryanlewis34@gmail.com.