School District To Sue Retirees
By Stephanie Mariel Petrellese

Thirty-four retirees of the Garden City School District who have elected not to repay the district after it was revealed an error had been made in calculating the cost of their health insurance will now be sued, announced Board of Education President Kenneth Monaghan.

At its meeting on Nov. 19th, the Garden City Board of Education unanimously authorized its legal counsel, Guercio & Guercio, to proceed with litigation against 34 retirees who have either refused or neglected to repay the district. For years, a total of 68 members of the teaching staff who retired from the Garden City School District after November of 1995 unknowingly did not pay the full cost of their health insurance premium due to a district coding error.

"As parents and as an educational institution, we try to set examples for our children and teach them that there are appropriate behaviors and ones that are not," said Monaghan. "We also try to teach them that there are times to take a stand. Even though the Board acknowledges that pursuit of these sums through litigation might be a costly exercise, we intend to pursue these individuals because doing otherwise would be wrong."

The district is attempting to collect a total of $119,600. They have already received payment or payment promises from 34 retirees totaling $47,500, which is about 40 percent of the collectible amount. "On behalf of the Board, I would like to thank those retirees who have paid or agreed to pay for doing so promptly," said Monaghan.

The error was caught by Albert Chase, assistant superintendent for business and finance, during a review of union contracts during the budget development process in February. In 1995, as a result of teacher collective bargaining negotiations, the district obtained a change in the percentage of health costs paid by that group. Under the terms of the contract, staff members retiring after November 1995 would be required to pay 10 percent of the individual cost of the premium and 25 percent of the family add-on.

Chase reported to Superintendent Dr. Robert Feirsen and the Board of Education that staff members opting for family coverage were not paying the 10 percent that applied to the individual portion. In total, 68 retirees were involved, including staff who retired at the end of the 2006 school year.

Attorneys for the school district informed the district that they were obligated to collect the funds but were limited to a retroactive collection of six years, going back to March 2001. Therefore, approximately $16,900 is not recoverable.

Retirees received letters from the district and payment plans were made available. The obligation of each retiree varies from a few hundred dollars to $3,000. He said the Board and central administration has had an ongoing dialogue with the 34 retirees for months, and they have offered "no rational reason for nonpayment." The district has stood form and will not negotiate with some retirees who are looking to make a deal with the district and pay a certain amount on each dollar owed.

The retirees who have either refused or neglected to repay the monies was printed in the meeting agenda and is available from the school district.