Dorchester County Sued Over Insurance Payments

SUMMERVILLE — Dorchester County Council and as many as 100 employees are being sued over a unique wrinkle in the county’s benefits program.

The lawsuit alleges that three council members — Chairman David Chinnis, George Bailey and Willie Davis — and up to 100 other public officials, appointees or employees received illegal payments after they opted out of the county’s health and dental benefits plan.

Since 1987, the county has deposited their insurance premiums — about $350 per month, according to the lawsuit — into an annuity for county employees and officials who chose not to participate. Some employees received reimbursements for separate insurance, according to the lawsuit.

In all, the county’s practice amounted to more than $300,000 annually in taxpayer money.

The lawsuit, which seeks repayment of the money, was filed in Dorchester County last month by lawyers Mike Rose and Andy Gowder on behalf of some residents, the Dorchester County Taxpayers Association and the S.C. Public Interest Foundation.

“It’s a shame citizens have to sue to get their councilmen to comply with the law,” Rose said.

Chinnis and Bailey have accrued almost $20,000 in their accounts, and Davis more than $15,000, the lawsuit said.

Employees can withdraw money from these accounts once a year — without fees or taxes, according to Dorchester County, but that seems to be rarely done.

“To my knowledge, no one has ever received a cash payment if they opted out of health and/or dental coverage,” County Administrator Jason Ward said.

The new lawsuit cites a 2013 state attorney general’s opinion that says the only compensation council members can legally receive for health care coverage is the payments made by the county on the member’s behalf. Such opinions don’t carry the weight of law, but instead offer an interpretation of the law.

Dorchester discontinued the practice in 2011 as a cost-saving measure, but those who were participating were allowed to continue, Ward said. There are currently 75 employees participating in the plan.

It is the only public employer locally that has such a program, according to officials. The S.C. Association of Counties has no information on whether other counties statewide have offered a similar benefit.

Dorchester County Council members are paid $20,000 annually, one of the higher rates in the state, according to the Association of Counties’ Annual Wage and Salary Report.

The lawsuit also alleges that the council members failed to report the annuity payments on their annual Statement of Economic Interest forms, which are required of elected officials each year by state ethics laws.

Attempts to reach Chinnis, Bailey, Davis and County Attorney John Frampton were unsuccessful.

For more information visit the source link below.

Source: www.postandcourier.com www.postandcourier.com

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