NY Unions File Lawsuit Over Retiree Healthcare Increase

December 30, 2011 (PLANSPONSOR.com)- Seven New York state unions filed federal lawsuits on Wednesday, challenging the Cuomo administration’s increase in the amount retirees must contribute toward their healthcare.

The unions said increases were unconstitutional because the state has no authority to unilaterally raise retirees’ healthcare costs. The changes enacted this year by the Cuomo administration increased healthcare contributions to 12% from 10% for individual coverage and to 27% from 25% for family coverage.

"What the Cuomo administration is trying to do is pull the rug out from under state retirees, many of whom planned their retirements based on when they felt they could afford to retire," Ken Brynien, president of the Public Employees Federation, said in a statement.

The governor’s spokesman has made statements to the media that the state did nothing illegal.

Earlier this month, the Retired Public Employees Association (RPEA) filed a lawsuit against Cuomo and New York state regarding the same 2% healthcare increase (see “NY Retiree Group Sues over Increase in Health Benefit Costs”).