Abbeville ups life insurance benefit for employees

The City of Abbeville has long offered life insurance as part of its benefits package to employees.
The perk, which goes back decades, served as a death benefit to cover burial costs, providing $5,000 to cover those cost.
Much has changed since the implementation of that plan, including burial costs. Retired city workers recently brought up the issue to city officials.
“I was a approached by a couple of our retirees who are approaching the age of 70,” Abbeville Mayor Mark Piazza said. “When this plan was put in place, as has been pointed out, it was meant to be a death benefit, to help our employees be able to at least bury their spouse. These days, you certainly can’t do that for $5,000.
“We want to make sure they at least have a death benefit to cover a decent burial for a loved one.”
Lloyd Campisi, who handles insurance matters for the city, presented what he said is a cost-effective proposal to help this situation. For an increase of $435.03 per month, which the city fully covers through the Hartford Life Insurance Company, it will enable an increase in the level of life insurance for full-time city employees to $25,000 immediately, and when they turn age 70, it lowers to $12,500.
“I think this is a very reasonable proposal from the Hartford,” Campisi said. “We have been with them since the initiation of the plan. For this amount of money to provide these types of benefits for all, I believe is a reasonable amount. I have checked with other carriers. I find this very, very competitive because we have been with (Hartford) for all these years.”
The Abbeville City Council voted 5-0 during the Dec. 1 regular city council meeting to accept the plan. Councilman-at-Large Francis Plaisance made a motion. Councilman Wayne Landry, District D, provided a second.
“It’s beneficial to our employees,” Plaisance said.
Piazza agreed.
“This is an extra benefit we want to include for our retirees,” Piazza said. “For $435 a month, that’s cheap for more than double the coverage in some cases.
“This is an excellent deal.”
The new proposal will go into effect on Jan. 1, 2016. Campisi said the Hartford will provide notices about the change to all employees.
Councilman Brady Broussard Jr., District C, who is the chair of the city’s insurance committee, said he is 100 percent behind the move.
“For a 150 percent increase in the value of the benefit, the council passed this measure unanimously because of the affordability of the premium,” Broussard said. “The great work that the city employees perform each day is never forgotten, even after they retire.”