Under the current plan, retired employees were eligible after 10 years of service and covered until death. Those eligible to retire prior to November 2013 can receive the benefit after just five years of service.

That plan, said Town Administrator Eric DeMoura, has become unsustainable.

'This is a very important issue,' DeMoura said while introducing the topic at the retreat. '(The current plan) is unaffordable, and we're marching forward in trying to find a post-retirement health insurance plan that is something we can justify.'

Town Chief Financial Officer Charlie Potts reported that an ad hoc committee was put together in September with different departments represented. That committee was responsible for coming up with new options for the plan.

'The issue is one of sustainability,' Potts said. 'We've got an annual required contribution at about $1.6 million a year. The major indicator to us is that it's not sustainable going forward. That was the reason to revisit this.'

A proposed new plan introduced in September 2011 cut the annual required contribution (ARC) in half, but due to ongoing concerns about how current retirees would be affected called for revisions.

Town Council member Elton Carrier voiced his sympathy for retirees. 'We haven't done a good job educating people about Medicare,' he said. 'I'm willing to vote for this now if we come back in a year and see how many of those 35-40 people on the plan will switch to Medicare.'

'We're still dealing with a number of variables, so we're going to have to continuously look at this issue,' added Council member Thomasena Stokes-Marshall.

The suggested implementation date is January 1, 2013.

'The change that Council voted on raises the years of service from five or 10 to 20 years,' DeMoura said. 'The change is, you now have to have 20 years of service with the town, with the idea being you should have at least that before the taxpayer should be committed to funding a post-retirement benefit.'

In addition, a minimum age limit has been put into place. Under the current plan, there was no age requirement. Moving forward, retirees will not be eligible to receive the benefit until age 60, or age 55 for those in the public safety industry.

Finally, those who receive the post-retirement health insurance benefit will only hold onto it until they are Medicare-eligible. Then, the Town will purchase a supplement. For those hired after November 2008, they will not receive a supplement when they become eligible for Medicare.

'We've dramatically reduced the cost of the benefit going forward by making these adjustments,' DeMoura said.

Current plan:

Eligibility: 10 years of service

Benefit to current retirees: Until death

Benefit to those hired prior to November 1, 2008: Until Medicare-eligible; Town buys supplemental plan for retiree

Benefit to those hired after November 1, 2008: Until Medicare-eligible; No supplemental plan

Amended recommendation:

Eligibility: 20 years, Minimum age

Benefit to current retirees: Until death; 5% cap

Benefit to those hired prior to November 1, 2008: Until Medicare-eligible; Town buys supplemental plan for retiree and spouse; 5% cap

Benefit to those hired after November 1, 2008: Until Medicare-eligible; No supplemental plan; 5% cap