Deal reached in Sonoma County retiree health dispute

Sonoma County and its retiree association appear to have settled a long-running legal dispute over medical benefits with an agreement that will fix the county’s payout for the next ?25 years.

The pact, which provides up to $500 a month to retirees until 2026 and up to $200 until 2041, goes to a vote of the 1,400-member Sonoma County Association of Retired Employees on Nov. 3.

It falls short of the 85 percent coverage retirees received before the county cut its contribution in 2008. But it was seen as providing at least some security given growing criticism of public employee benefits and legal setbacks over the course of the lawsuit.

“Do we think it’s a great deal? Absolutely not,” Carol Bauer, the association’s president and past child protective services director, said Tuesday. “Do we think it’s what employees were promised or should have gotten? No. But we do think it’s the best we’re going to get.”

If approved by the membership, the agreement will go to the Board of Supervisors for a vote. Chairman Efren Carrillo said the panel could take up the matter Nov. 15. A final vote would come in early December.

Carrillo said the agreement resolves all claims from the retirees while reducing the county’s liability for post-employment benefits by $30 million. By 2041, the county will no longer be paying medical benefits to retirees covered by the proposal, he noted.

“I’m encouraged by the progress we’ve made,” Carrillo said. “As it stands, the agreement is something I could certainly support once it comes to us in a public setting.”

As part of the agreement, the county will pay $1 million in ?legal fees to the retirees’ lawyers. Bauer said the county reported last year it had spent $5 million on its own outside legal representation.

U.S. District Court Judge Claudia Wilken is expected to sign off on the class-action agreement early next year. At that time, those who wish to do so may opt out.

The settlement ends a seven-year legal battle sparked by the county’s move to lower health care costs by reducing benefits for employees and retirees.

Retirees claimed $100 million in damages in the 2009 suit claiming the county reneged on promises to provide lifetime medical benefits. The county maintained it made no such assurances.

Wilken dismissed the suit, finding retirees lacked evidence of a county obligation. The dismissal was reversed on appeal but the judge reduced by about 40 percent the number of retirees who could participate in the case.

Before going to trial, both sides were ordered to attempt mediation. A tentative agreement reached in March will apply to about 3,000 people who retired before June 30.

Among the terms is the establishment of a $12 million health reimbursement account that could provide up to $4,000 per retiree.

“It will provide a lot of security to those it covers,” said Greg Jacobs, association vice president and former county prosecutor.

You can reach Staff Writer Paul Payne at 707-568-5312 or paul.payne@pressdemocrat.com.