Henry County supervisors vote to end deferment of benefit options

Thursday April 14 Henry County Sheriff Rich McNamee aired a grievance concerning a decision made by the Board of Supervisors which excluded his new hires to participate in the county deferred compensation plan.

In response, Board Chair Greg Moeller proposed a motion be made to dissolve all of the deferred compensation plan from the employee handbook and that any payments being received by county employees stop at the time of dissolution.

Supervisor Marc Lindeen motioned for the proposal. Moeller seconded the motion. Supervisor Greg White abstained from the vote.

“I came to the end of the March 22 meeting for any further county business and we discussed this opt-out plan.” McNamee said. “I thought at the end of our conversation we had an agreement, but a few hours later I received an email from Paul and this paper with my payroll saying otherwise.”

McNamee expressed that according to his conversations with lawyers concerning this matter this misstep in rewording could open the county up to potential litigation and sanctions of the IRS code.

“In the county, we made a mistake,” Human Resources Consultant and author of the Henry County Employee Handbook Paul Greufe said of the initial handling of McNamee’s questions concerning the deferred compensation program.

The board members and Greufe held the position that this was merely a matter of poor wording that was misinterpreted and then corrected.

“The county gets to set what those guidelines [in the handbook] are.” Guefe said. “All we were doing was clarifying intent.”

McNamee held the position that if the Henry County employee handbook should be changed he and other department heads should have been included in the conversation.

According to Moeller, Compliance Manager at Employee Benefit Systems Deb Sherwood, agreed that the exclusion of some employees was an unacceptable option and the board either needed to dissolve the benefit or could set a percentage or dollar amount standard.

A question was posed as to why they wouldn’t do that instead of excluding anyone.

“We were not doing what we were supposed to be doing,” Moeller said.

“We thought we were in compliance at this point [when McNamee first brought the matter to the board’s attention],” Lindeen said.

“[Sherwood] did not give us that information [when we first talked],” Moeller said for why they did not have this opinion from the onset of the conflict.

Moeller explained that he saw the situation differently because he thought of it as those employees under 26 on their parents’ insurances as not paying for their insurance themselves and reasoned that, that could open the benefit up for being taken advantage for profit.

“The two gentlemen who do benefit had ought to be taken off and therefore pay back those benefits,” McNamee said. “Or anyone else I am unaware of.”

“Payback is a really gray area in human resources,” Greufe said and further explained that the employees receiving the benefit were not to blame for the county’s mistake.

“Either everyone is eligible or no one is,” McNamee said.

White benefits from deferred payment for benefits from Henry County.

“To save tax payer money,” White said as reasoning for requesting the deferment option be added in the first place.

According to White himself, he has been compensated with $180 monthly for his deferment.

“I not making money on this,” White said.

He further told the room that he was just a middleman for the money to pass through on the way to his insurance company.

As the meeting continued to not go in the direction McNamee petitioned he informed the room that he did not have to follow the Board of Supervisors’ handbook.

“You can work together with me or I can work by myself,” McNamee said.

After this comment Moeller asked for a motion to move onto the next person on the docket which was Greufet discussion & possible action on policy and procedure.

“I’m not leaving without a response,” McNamee said. “I’ve already waited a week.”

Moeller and Lindeen would not discuss the topic at the April 14 meeting.

“We’re not taking care of our employees,” McNamee said after Lindeen made the motion for dissolving and before Moeller seconded it.

After an additional meeting with human resources McNamee offered a final opinion.

“It’s a complex situation.” McNamee said. “I don’t agree with their decisions. I will take care of my employees as best I can.”

McNamee paused.

“They just cut off two employees just to not care for two other employees.” McNamee said. “It just isn’t taking care of our employees.”

County Conservation Director Caleb Waters sat in on the meeting April 14 to hear all sides of the issue. He responded to questions after the issue was finalized.

“I can understand where Rich [McNamee] is coming from, but it’s ultimately the supervisors’ decision.” Waters said. “All county employees are part of a team and should be equal across the board.”

Comments: AnnaMarie.Ward@southeastiowaunion.com