School District, Retirees Claim Court Victory

A judge has ruled that the Orange Unified School District cannot subject retired clerical and custodial workers to different health benefit rules than those for current employees.

Orange County Superior Court John C. Woolley’s decision came in the case that 325 retired classified employees filed against the district. The retirees say the district has reneged on a promise to provide free lifetime medical care. They are seeking $35 million in damages, and their lawyer said the case will move forward.

However, the judge also stated that medical plans change periodically and that the district “is not required to provide medical/health coverage to the plaintiffs which is not provided to active employees.”

This led both sides to claim victory.

“The issuance of an injunction is undeniably an indictment of the unlawful practices Orange Unified School District has been conducting against retirees,” said the retirees’ attorney John David Pereira.

Pereira charged that the district was trying to save $315,000 a year by requiring retirees to join Medicare at 65, although current employees were not required to enroll. The judge barred the district from enforcing that provision.

However, district lawyer James Bowles said the judge’s concerns could be easily allayed by changing the agreement with current employees to require Medicare enrollment at 65. He said he was pleased the judge did not agree that retirees were owed a better health plan than current employees.