Wisconsin Federal Court Rules Against CUNA Retirees’ Sick Pay

August 12, 2011

A federal appeals court in Madison has dismissed a lawsuit by retired managers at CUNA Mutual Insurance who argued the company had no right to eliminate their sick pay balances.

CUNA Mutual was sued after it stopping paying any share of employees’ health care in 2008. The move eliminated sick pay balances for about 600 retirees valued at $121 million. Some retirees had individually accumulated up to $145,000 in sick pay that they expected to use to fund their health insurance premiums.

The managers argued the company breached its promise to reward employees at retirement for coming into work instead of calling in sick.

The State Journal says the court ruled an employer can prefer its own interests, and that of its investors, over those of employees and retirees.

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