Rule Westchester Can't Cut Health Benefits Of Retired CSEA Members
By TOMMY HALLISSEY
The Civil Service Employees Association has won a $3.6-million class-action lawsuit stemming from charges that Westchester County unilaterally and illegally diminished the health-insurance benefits of retired workers.

DANNY DONOHUE: Shows need for legislation.

The union filed suit in 2004 on behalf of 1,600 retired members who lost benefits between January 1993 and May 2004. The award reimburses retirees who were hit with increased co-pays and deductibles.

'Can't Reduce Without Consent'

The CSEA and Westchester settled a contract in May 2004 that included increased co-pays and deductibles for health insurance. The union said it knew members would have to pay more, but not retirees. Contracts between the union and the county prior to 1993 specifically stated that the agreed-upon health-insurance benefits were effective for the duration of the contract, but such language was omitted from the two agreements in effect between January 1993 and May 2004.

CSEA argued that the intent of the omission was to create a vested lifetime benefit for workers who retired during that time.

Westchester State Supreme Court Justice Joan Lefkowitz ruled for the union, saying, CSEA's "health-insurance benefits in the prior collective bargaining agreements survived those agreements and may not be diminished without their consent."

CSEA Westchester County Unit President Jack McPhillips said the ruling is a huge victory for retirees. "They are living on fixed incomes and never expected they would be forced to pay more for their health care," he said.

CSEA President Danny Donohue said the ruling showed the need for retiree health-insurance legislation, which the union is already backing. The bill, which awaits Governor Paterson's approval after passing both houses of the State Legislature, would prohibit public employers from shifting health-care costs to retirees and forbid diminishing benefits for one year while a study is conducted to find the most cost-effective solution.

"This legislation is about doing what's morally right and fair," Mr. Donohue said. "It's about making sure localities live up to their responsibility to retirees that their health-care coverage will continue to be there as promised."