The OEA...before and after.........
3) Retired Staffers Sue Ohio Education Association. For years, NEA state affiliates have been blaming staff retirement benefits for their budget deficits. Some have taken drastic steps to deal with the problem. Now the Ohio Education Association (OEA) may be the first to feel the backlash.
A group of retired OEA staffers have sued the union over termination of health benefits. The Coalition of Retired Employees (CORE) of OEA claims the union violated guarantees in the staff collective bargaining agreement. OEA claims it has no obligation to provide benefits beyond Medicare Part B reimbursement to retired staffers over 65, and that any additional coverage they had been receiving was not authorized by the contract. All additional coverage was terminated last August, prompting the CORE lawsuit.
In concert with the lawsuit, CORE is also treating OEA to a bit of labor activism, picketing the union's representative assembly last month with a sign reading "OEA Cheats Retirees," publishing a newsletter, and setting up a web site (http://www.coreofoea.com).
AFTER
http://www.eiaonline.com/archives/20100420.htm
| April 20, 2010 |
| 1) Ohio Education Association to Pay $3.75 Million in Damages to Retired Staffers. The Ohio Education Association (OEA) settled a class action lawsuit filed in 2004 by retired employees who charged the union with cutting off promised health benefits (for background, see EIA's story, item #3 here). Under the terms of the settlement, OEA will pay $3.75 million in compensatory damages to the retired staffers, plus pay into a Voluntary Employee Benefit Association (VEBA) that will fund healthcare benefits to retired staffers beyond the age of 65. The proposal is for the VEBA to purchase "a Medicare Supplement Plan along with additional prescription drug coverage. In order to receive the benefits provided by the VEBA, class members may be required to pay an amount expected to be not greater than ten percent of the premium costs for the supplemental insurance coverage." OEA's annual contribution is set at $375 per retiree (aged 65 and older) per month plus a pro-rated portion of any future increase in premium. The benefit will continue for as long as they live. There are approximately 118 retired OEA employees in the class, which means the initial annual payment could exceed $500,000 - fluctuating in subsequent years based on how many current retirees reach 65 and how many pass away. The U.S. District Court for the Southern District of Ohio will hold a hearing on April 29 to decide whether to give final approval to the settlement |
posted by Kathie Bracy at 10:51 AM
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