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Judge rules for UI in retiree lawsuit

November 3, 2009, 1:22 pm

MOSCOW - A group of 268 University of Idaho retirees have lost their bid in court to have early retirement benefits restored.

In granting summary judgment to the university, 2nd District Judge John R. Stegner ruled the retirement agreements incorporated the UI Faculty-Staff Handbook by reference. That document reserves the right of the State Board of Education and the university to change benefits, Stegner ruled.

"Because the University retained the right to modify the benefits afforded to all retirees, not just the early retirees, it did not breach its contract with the class-members," he wrote in the judgment.

Stegner also found the university did not violate the covenant of good faith and fair dealing that is implied in all employment agreements.

Faced with financial difficulties in 1998 and 2002, the university twice used extra benefits to entice certain highly paid employees into early retirement. But in 2007, the university reduced their life insurance benefits and started charging health insurance premiums in another effort to save money.

After the 2007 changes, the two classes of employees joined in the lawsuit. Both they and the university agreed to submit to Stegner's summary judgment earlier this year.

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For more on this story, see Wednesday's Lewiston Tribune.