Joliet to vote on changes in ‘Rolls Royce’ health plan

The Joliet City Council on Tuesday will vote on changes in health benefits for non-union employees aimed at chipping away at an unfunded insurance liability estimated at $700 million.

The changes will not affect union employees who in 2016 locked in a health benefit package for 14 years while agreeing to two-year pay freezes.

“How this ever got to be a 14-year deal, I don’t understand,” Mayor Terry D’Arcy said at a Monday workshop meeting. “It’s time we make a change.”

D’Arcy was elected in 2023 and not mayor at the time the City Council approved the 14-year health package for employees.

He characterized the city health coverage as a “Rolls Royce” plan that is “very, very expensive.”

Health insurance costs the city $32 million a year now and is on course to cost $42 million annually without changes, D’Arcy said.

The proposed changes also will affect non-union retirees.

The vote Tuesday faces some resistance.

“I feel like we’re rushing this through,” Councilman Joe Clement said, adding that he has heard from some non-union employees who want more information about the new plan.

City Manager Beth Beatty said the proposed plan has been generally well received by employees because it provides more coverage for preventative care.

“It’s something they’ve been asking for for a long time,” Beatty said.

Employees can keep the current coverage but will have to pay more for it, she said.

Beatty said the same proposal was made for union employees but was pulled so it can be negotiated with the unions.

“They felt it was being rushed,” she said. “They wanted a seat at the table.”

According to city officials, the proposed plan provides incentives for healthier lifestyles while the current plan does not cover check-ups and screening and steers employees toward higher cost health care.

The plan also creates a second tier of non-union employees hired after Jan. 1 who will not be eligible for retiree health coverage.