Retirees Appeal Health Insurance Decision

ALBANY, NY (11/20/2013)(readMedia)-- The Retired Public Employees Association (RPEA) has filed an appeal to reverse a lower court decision which affirmed the power of the President of the Civil Service Commission to increase the percent of retirees' health insurance payments to coincide with the percentages in a new collective bargaining agreement with current employees. The rate increase applies only to retirees who participate in the New York State Health Insurance Plan (NYSHIP).

In announcing the appeal, Paul Moore, President of RPEA, stated "Since 1983 retirees have been contributing to the cost of their health insurance. That contribution percent has always been set in the state Civil Service Law. The state officials who 'administratively extended' provisions of negotiated union contracts to retired public employees should be legally stopped from imposing such terms on existing retirees. As retirees, we have no role in bargaining for a new contract and, therefore, should not be covered by its provisions." Moore concluded "this is terrible public policy and we are optimistic that the Appellate Division will agree with us. Retirees deserve no less".

The original decision was rendered in December 2012. Under existing Civil Service Law, NYSHIP enrollees who retired after January 1, 1983 are required to pay a percentage for the cost of health insurance premiums, which increase every year. The last time contribution percentages were changed, retirees were grandfathered into the program and only future retirees had to pay the increased percent.

It is anticipated that it will be several months until the Appellate Division hears oral arguments and issues a decision.

RPEA is headquartered in Albany and has nearly 40,000 members. The Association's sole purpose is to represent the interests of public sector retirees, both state and local. RPEA has been in existence since 1969.

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