Retired Cops Oppose Change in Terms of Benefits

Posted on July 1, 2009 by Donald Barbati

 

An association of retired cops has warned Hamilton Township to not tamper with their retirement package. The association alleges it would be illegal to change the terms of their benefits “in the middle of the stream.” The Mercer County Local 12 of the Retired Police and Firemen’s Association sent the warning to the Hamilton Township Business Administrator John Ricci this week in a letter.

Ricci confirmed he received the letter a letter from Trenton attorney Sid Lehman, saying the association “objected” to the Township’s plan to change retirees’ prescription drug co-pays to match the co-pay terms of active employees. “Sid sent a letter saying you can’t do that because they are retirees and they are entitled to the same benefit they had when they retired,” Ricci said. “He gave me the case law, and I agreed with him, and that was the end of that.”

Thomas Murphy,a retired Trenton cop and president of the 400-member Local 12, said there is nothing “adversarial” about the issue. “We want to sit down and see if we can come to an agreement at the table. We have precedent on our side, and we won’t hesitate to use it.”

“They’re not a union, they have no right negotiate,” Ricci said, “but they do have certain rights to continue receiving the same benefits they had when they retired, and that’s what this is about.” 

Both Ricci and Murphy expressed optimism that the issue would be resolved without any legal action.

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Court Permits Suit Alleging Violations of Collective Bargaining Agreement to Continue

Posted on June 2, 2009 by Donald Barbati

 

On May 28, 2009, the Honorable Peter A. Buchsbaum, J.S.C. decided Mark Petersen v. Township of Raritan, Docket No. HNT-L-446-08. The complaint alleged contractual violations of the 1997-1999 collective bargaining agreement between the Township of Raritan and the Plaintiff.

Plaintiff was police officer who retired in 1999. The 1997-99 collective bargaining agreement included retiree health benefits at Article XXII. As of July 1, 2008, current employees and retirees would no longer be able to enroll in the Traditional Plan. Those who were already enrolled in that plan, such as Plaintiff, could switch to the POS plan without any cost to them. They could, however, choose to remain in the Traditional Plan, provided they agreed to pay the excess premium between these two plans from that point in time.

Count one of the complaint alleges a violation of Section 5 of the insurance clause of the collective bargaining agreement because, as of July 1, 2008, Plaintiff is paying a premium differential for the Traditional Plan in which he is enrolled, that is, the difference in premium costs between the Traditional Plan and the POS plan offered by the Township. Count two of the complaint alleges a violation of Section 5 of the insurance clause of the collective bargaining agreement because, as of July 1, 2008, Plaintiff’s co-pays for certain prescription drugs have increased. In response to the complaint, Defendant moved for summary judgment.

The trial court found the language of the collective bargaining agreement sufficiently complex to warrant further examination. Specifically, the court found ambiguity in the insurance clause as to whether the language “shall continue to receive all health and medical benefits provided by the employer for the remainder of his life” would reasonably lead Plaintiff to believe that he would receive health coverage equivalent to the Traditional Plan for the remainder of his life. Therefore, the court determined Defendant’s motion for summary judgment was premature and, thus, factual exploration of the issues in this matter is necessary.

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