NEW CANAAN — The New Canaan Police sergeant who faced possible termination after the town paid $30,000 in health insurance premiums for his former wife after he failed to remove her from his coverage plan will keep his job after an unpaid suspension, Chief Leon Krolikowski announced Tuesday night.

Sgt. John Milligan, the former president of New Canaan Police Union Local 1575, will repay $28,608, and be ineligible to seek promotion for five years and agrees to accept any position in the department chosen by the chief, according to the statement issued by Krolikowski.

He will also serve a 90-day unpaid suspension, according to officials.

“We are pleased that we are able to conclude this matter in a fashion that is in the best interests of the department and the town,” Krolikowski said. “By way of his agreement to a variety of penalties, Sergeant Milligan has finally accepted responsibility for his actions.”

The announcement came hours after nearly a month of in-depth testimony at trial such as proceedings before the town’s three-person police commission that began last month on disciplining or firing Milligan over the episode.

Milligan acknowledged he had not notified the town his wife should have been removed from the plan, and his lawyers said he offered to pay back the premiums to settle the matter.

The fundamental issue of Milligan’s fault in not terminating coverage for his ex-wife was not contested, Milligan’s attorney, Eric Brown contended. Brown is an attorney with the AFSCME Connecticut Council of Police Unions.