Page 1 - Retiree News Winter 2021

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NEWS Mary E. Sullivan, President WINTER 2021
State’s highest court to review CSEA’s retiree health insurance litigation against state
Editor’s Note: The lawsuit discussed in this article affects ONLY New York State Executive Branch and Unified Court System retirees who retired between 1983 and 2011.
In December 2011, CSEA and
a coalition of other unions filed
a federal lawsuit after the state increased the health insurance contribution percentage for state retirees who retired between 1983 and 2011, including thousands of CSEA members. The union did not negotiate the health insurance increases.
CSEA’s in-house Legal Department has for years fought on behalf of the affected retirees.
The lawsuit claimed that the state violated the contracts that were in effect between CSEA
and the state on the date when each retiree retired, as well as
the Contracts Clause of the U.S. Constitution when the state raised the rates in 2011. The unions involved in the case argued that it is illegal for the state to increase costs for already retired members, and the increases were not negotiated.
A U.S. District Court judge denied CSEA’s motion for summary
judgment in the case in late 2018, noting that the language
in the contracts was clear and unambiguous and that there is no language providing for a fixed level of premium contribution in retirement.
The union appealed the case to the United States Court of Appeals for the Second Circuit, which covers New York.
A
federal court has asked the
New York State Court of Appeals to review questions in the ongoing class action state retiree health insurance lawsuit in which CSEA is the lead case.
In the November 6, 2020, decision, the United States Court of Appeals for the Second Circuit issued a decision seeking the
New York State Court of Appeals to review certified questions
as to whether provisions in the collective bargaining agreement created a vested right to a fixed contribution rate for the lifetime of the retiree. The court stated that both of the plaintiffs’ claims raised unresolved issues of state law, as “New York law does not provide settled principles that we may apply in order to conclusively resolve the issues in this case.”
In its decision, the U.S. Court of Appeals for the Second Circuit also addressed the current status of New York law, beginning with the state Court of Appeals’ decision
in Kolbe v. Tibbetts, 22 NY3d 344 (2013). CSEA also represented
the plaintiffs in Kolbe, which was another monumental retiree health insurance case that CSEA brought against the Newfane Central School District in the Western Region.
In Kolbe, the court held that the contract language unambiguously established a vested right to retiree coverage until age 70, despite the absence of express durational language. Since the Kolbe decision, no other case has been presented to the Court of Appeals that has addressed whether New York law applies an inference of vesting for retiree health insurance rights,
the U.S. Court of Appeals for the Second Circuit asked for guidance and review on this issue.
On December15, 2020, CSEA
was notified by the New York State Court of Appeals that it accepted the certification of questions presented by the federal court, and that the state court will consider the issues once the parties have
fully briefed these questions and presented oral argument.
“After over nine years of litigation, CSEA is pleased that
the U.S. Court of Appeals for the Second Circuit is seeking guidance from the New York State Court
of Appeals on this significant litigation,” CSEA President Mary E. Sullivan said. “We are committed to continuing to fight on behalf of the retiree members who have been financially harmed by the state’s increases.”
The New York State Court of Appeals’ decision will not only affect the thousands of retirees in this case, but will affect all New York retiree health insurance cases. CSEA will provide updates as this case unfolds.