Administrator Christine Smeltzer said the early retirement plan could be a cost-saving measure for the township.
By John Tredrea
Hopewell Township employees who have worked for the municipality and been in its pension plan for at least 25 years can retire at age 55 and continue to be covered by the township’s medical insurance.
The full Township Committee voted unanimously to approve the change to the township’s policy and procedures manual on April 10. Previously, a 25-year employee with 25 years in the pension plan had to be 60 years old to qualify for the continued health coverage, which is paid for in full by the township.
Township Administrator Christine Smeltzer said the early retirement plan could be a cost-saving measure for the township, which is struggling with a tight budget (see separate story).
"The older employees of the township tend to be the highest paid," Ms. Smeltzer explained. If older employees retired, they could be replaced by younger people who would start at or near the bottom of the township’s pay scale. This salary differential could translate into a cost-saving more than substantial enough to offset the $5,000 the township would have to pay annually to continue providing health insurance to an individual who had opted for early retirement.
A employee who retires at 55 may add his or her spouse to their medical plan. However, the retiree would have to pay 100 percent of the cost of insuring his or her spouse.
Unchanged by the amendment is the stipulation that the township will provide medical coverage to retirees until Medicare becomes their primary source of health insurance. At that point, only secondary health insurance coverage is offered by the township.
The amendment also allows employees who have worked for the township and been in its pension plan for at least 25 years to retire before age 55, but they would have to pay their own premiums if they decide to remain in the township’s medical plan. Once they reached age 55, the township would take over paying retirees’ medical insurance.

