ENTERPRISE, Ala. (WDNews) – The City of Enterprise has approved updates to its retiree health insurance policy, enhancing benefits for long-serving employees while maintaining a focus on fairness, transparency, and responsible financial management.
Under the new policy adopted November 3, 2025, the city will continue paying 50 percent of retiree health insurance premiums as a baseline benefit and will now add enhanced tiers for employees with 25 or more years of service.
25 years of service: The city will pay 75 percent of retiree health insurance premiums, 0 percent for dependents, and 0 percent after Medicare eligibility.
30 years of service: The city will pay 100 percent of retiree health insurance premiums, 0 percent for dependents, and 0 percent after Medicare eligibility.
“This is a meaningful step forward for our employees,” said City Administrator Jonathan Tullos. “We’re honoring the individuals who have devoted decades of their careers to serving the people of Enterprise, while also ensuring our benefit structure remains transparent and financially sustainable.”
The new policy, effective immediately, applies to all future retirees and establishes a clearer framework for long-term planning and retention.
The council also addressed coverage for approximately 60 current retirees to align with the city’s long-standing policy. Adjustments will affect retirees based on Medicare eligibility and current coverage levels, with monthly rate increases ranging from $61.50 to $129 beginning January 1, 2026. Retirees will have 12 months to plan for future adjustments, which will bring rates in line with standard market levels by 2027.
Addressing Recent Concerns
City officials also addressed concerns raised following a recent letter to retirees and the attention the issue received on social media. During the October 21 City Council meeting, leaders emphasized that no policy has changed. The council’s November 3 action corrected a “long-standing discrepancy” and aligned retiree benefits with the city’s adopted policy, which has been in place since 1987.
The discrepancy was found during a routine review of insurance rates, prompting the Human Resources Department to reexamine the retiree policy. Over time, the city had been covering a greater portion of retiree insurance costs than authorized. Once discovered, the issue was brought before the council and discussed publicly to ensure “accountability and transparency.”
“We are proud to say that Enterprise continues to offer one of the most generous retiree health benefits in Alabama,” Mayor William E. Cooper said. “These updates reflect our gratitude for the men and women who built this community while ensuring we remain responsible stewards of taxpayer dollars. It’s a fair and forward-looking solution that benefits everyone.”
Additional Employee Option
The council also approved a measure allowing current employees to opt out of city-provided health insurance during open enrollment in exchange for a $300 monthly stipend. The option gives flexibility to employees covered under a spouse’s plan and is expected to reduce overall costs for taxpayers.
Citizens, retirees, and employees can view the full discussions from the October 21 and November 3 City Council meetings on the city’s official YouTube channel.
