FOP sues city over end of health insurance for some retirees [Reading Eagle, Pa.] - Insurance News | InsuranceNewsNet

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December 14, 2012 Newswires
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FOP sues city over end of health insurance for some retirees [Reading Eagle, Pa.]

Don Spatz, Reading Eagle, Pa.
By Don Spatz, Reading Eagle, Pa.
McClatchy-Tribune Information Services

Dec. 14--The union for Reading police has sued the city in Berks County Court, seeking to stop the city from throwing retired cops off city health insurance until a separate grievance on the issue can be heard.

The Fraternal Order of Police claims the city is ignoring a 1988 agreement that allows many of those retired officers to stay on city insurance.

The city has been providing police retirees with city-paid health insurance since at least 1988, the result of an arbitrated contract.

The contract wording says benefits for the retired officer and a spouse won't be provided if they're eligible for insurance coverage by a new employer of either one.

Earlier this year, city officials examined which retirees are getting the insurance and noticed many had gotten new jobs with other police departments or other employers, but kept the city insurance.

They also are checking if current employees in several departments are truly eligible for the benefits.

The city sent questionnaires to everyone, demanding they prove eligibility.

The answers are due Dec. 30. The city has said that if there's no answer, or the wrong answer, benefits could be revoked.

The city budgeted more than $800,000 in savings next year from the move.

However, the suit claims:

The FOP filed a grievance on behalf of police retirees in October, claiming the move would violate the 1988 pact.

When the arbitration award came down, the city said it would stop medical benefits if they were available through other employers, regardless of the benefits' type or quality.

But the city had told its retired firefighters, also getting city insurance, that they had to switch only if a new employer's benefits were equal to or better than the city's.

The FOP threatened legal action, and then-FOP President Lionel B. Carter and city Personnel Director James Pfleger agreed police retirees would get the same "equal to or better than" requirement, a policy followed ever since.

The suit does not include a copy of that agreement.

FOP President Justin Uczynski could not be reached for comment, nor could city Solicitor Charles D. Younger.

Mayor Vaughn D. Spencer denied the grievance Nov. 29, and the FOP has demanded arbitration.

However, the suit says that the process will take some time, but retirees are being told their benefits will end Dec. 31 based on what the suit calls mere eligibility for other insurance.

The FOP said the retirees will be irreparably harmed, and is asking the court to keep the status quo until the arbitrators can rule.

Contact Don Spatz: 610-371-5027 or dspatz@readingeagle.com.

___

(c)2012 the Reading Eagle (Reading, Pa.)

Visit the Reading Eagle (Reading, Pa.) at readingeagle.com

Distributed by MCT Information Services

Wordcount:  447

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