[Vision2020] UI Retirees Lawsuit: Clients await ruling in class-action suit

[Tom Hansen]

Courtesy of today's (September 30, 2009) Moscow-Pullman Daily News.

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UI RETIREES LAWSUIT: Clients await ruling in class-action suit
Judge to assess arguments and issue decision at an undecided date

By Holly Bowen Daily News staff writer
September 30, 2009

A conflict between a group of University of Idaho retirees and the
university is one step closer to resolution.

Latah County Second District Court Judge John Stegner heard oral arguments
Tuesday afternoon from both sides seeking summary judgement in a
class-action lawsuit filed against the UI and the Idaho State Board of
Education by a group of former UI employees.

The 268 former employees took early retirement buyout offers under the
1999 Early Retirement Incentive Program and the 2002 Voluntary Separation
and Retirement Opportunities Program.

The retirees, represented by Moscow lawyer Ron Landeck, allege the UI
broke its promise to provide "certain health and life insurance benefits
through the retirees' lifetimes," Landeck said.

He said ERIP and VSROP offered "extra incentives" for early retirement,
and both contracts included language that said retirees would be eligible
for all benefits they would have received "under existing UI policy" at
the time the contracts were signed.

Those benefits included paid UI medical insurance in addition to life
insurance policies equal to retirees' salaries during their final year of
employment, until age 65, when the amount would begin to decrease.

A 2007 UI retiree task force recommended the university require ERIP and
VSROP retirees pay a monthly premium toward their existing medical
coverage or switch to a high-deductible plan with no premium.

The retirees' life insurance policies also were reduced to a maximum of
$10,000 each.

The UI, represented by Portland, Ore.-based attorney Bruce Rubin, contends
it has always had the right to change the terms of the contracts based on
policies in the UI faculty and staff handbook in effect at the time the
contracts were signed.

Rubin said the benefits covered "under existing UI policy" at the time
were subject to a preamble in the faculty and staff handbook that stated,
"The (board of education members) reserve the right to amend, modify or
terminate any benefits plan at any time."

"Our position is a simple one," Rubin said. "The plaintiffs are not
entitled to pick and choose which parts of documents they rely on and
ignore the rest."

Landeck said the ERIP and VSROP contracts state the terms and conditions
of the agreements can only be changed, modified or terminated if all
parties express written agreement.

He also said the 2007 benefits changes were not directly approved by the
board of education. Rather, they were implemented by the university's
president.

Rubin said the board of education delegated the authority over the
benefits changes to the UI president.

Landeck further argued the language in the contracts is "unambiguous" and
does not include a statement allowing the board of education or the
university to modify or terminate benefits. He said the contracts should
have included such a clause if the UI intended to one day make
modifications.

"The benefits that (the retirees) were offered and the benefits that they
earned were not the right of the (board of education) to take those
benefits away," Landeck said.

Rubin's response was that just because employees earn certain benefits
does not mean they are guaranteed those benefits in perpetuity.

In filing the lawsuit, the retirees are seeking the reinstatement of the
pre-task force benefits in addition to seeking an injunction to prevent
the UI and board of education from making further "unilateral changes" to
ERIP and VSROP retirement benefits.

Retirees Wileen Anderson, Harvey Neese, Joyce Presby and Arthur Smith were
the original plaintiffs in the case and are serving as representatives of
other retirees in what is now a class-action suit.

Stegner will assess the arguments from both sides and issue a written
decision at a later, as-of-yet undetermined date.

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Seeya round town, Moscow.

Tom Hansen
Moscow, Idaho

"The Pessimist complains about the wind, the Optimist expects it to change
and the Realist adjusts his sails."

- Unknown