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The Vandal Voice Since 1898
Home arrow News arrow Retirees lose case
Retirees lose case Print E-mail
Written by Kelcie Moseley - Argonaut   
Thursday, 05 November 2009

Judge rules in favor of UI in benefits lawsuit

A class action lawsuit filed by 268 former University of Idaho employees last year was dismissed Monday in a written statement siding with the university.

Latah County Second District Court Judge John Stegner ruled that summary judgment would be awarded to the university on the basis of their rights to modify employee benefits as outlined in the UI Faculty-Staff Handbook, though those rights were not referenced in the contract given to employees.

A complaint was filed in July 2008, but the benefit changes were put in place in 2007. Two groups of retirees — one from 1999 and the other from 2002 — signed contracts extending early retirement offers to tenured faculty and honored staff.

“These were not just people who had worked five or ten years,” Ronald Landeck, the Moscow attorney representing the plaintiffs, said. “They had given most of their lives to the university.”

The two programs, the 1999 Early Retirement Incentive Program and the 2002 Voluntary Separation and Retirement Opportunities Program, were designed to create incentive for some employees to retire early and ease the strain on UI’s budget. The contracts informed employees that they would be entitled to all benefits they would normally receive under existing UI policy, including medical coverage.

Landeck said in 2007, the UI sent out a notice telling retirees they would have to choose between paying a monthly premium on a health insurance plan or choosing one with no premium and a high deductible. Their maximum life insurance coverage was also reduced to $10,000, rather than the amount of a year’s salary, as they were originally promised.

“(My clients) feel as if there’s been a tremendous breach of trust by the university,” Landeck said.

UI Spokesperson Tania Thompson released a statement on behalf of the university stating approval of the decision.

“The ruling is consistent with our understanding of the law and the university’s ongoing right to revise its employment benefits and benefits programs for its retirees,” Thompson wrote. “The decisions about how we allocate our resources are difficult ones and we know that they do impact our employees and our retirees; we take seriously the stewardship of our resources.”

Landeck said the group of retirees plan to appeal the decision, and he expects it could go as far as the Idaho Supreme Court.

“I think they’ve got every right to keep pursuing it,” Landeck said.
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