LCTA life insurance for board members still under discussion

The Luzerne County Transportation Authority will evaluate a longtime practice of providing life insurance to past and present board members and provide a final determination to county council, board Chairman Charles Sciandra said in a letter forwarded to council members Monday.

“Our board wants to maintain a strong relationship with council so we can continue to meet shared goals in providing transit service in Luzerne County. Your concerns about the life insurance will be reviewed at upcoming authority board meetings,” Sciandra wrote.

County Councilman Walter Griffith had discovered the perk while reviewing an authority audit and publicly announced his discovery last month.

The authority spends $3,481 on the board member life insurance annually — $2,624 to provide $45,000 basic term policies for the entire nine-member board and $857 for 14 prior members to receive $10,000 policies, it has said.

In his letter, Sciandra said the authority’s legal counsel has determined life insurance for board members is authorized by the Municipal Authorities Act along with coverage for employees.

The county transportation authority established life insurance for board members more than 30 years ago, he said.

“In all likelihood, it may coincide with the creation of the authority,” the letter said.

The authority was created in 1972 to help with recovery after Hurricane Agnes and became a permanent entity in the Wyoming Valley two years later, its website said.

Changes in the life insurance carriers and benefits were periodically implemented, with the most recent modification in 2005, Sciandra said.

The authority board’s next meeting is at 5 p.m. on Feb. 23.

The county law office also is continuing its review of the life insurance, as requested by council.

While the county’s home rule charter only authorizes compensation for the board that oversees property assessment appeals, it’s unclear whether the charter supersedes state law governing authorities, officials have said.

Sciandra has said the authority does not want the life insurance matter to sideline its focus on saving money by studying a potential consolidation with the County of Lackawanna Transit System (COLTS).

His letter thanked council for its recent vote to create a study group to evaluate that possible merger.