FRO files claim with Deere over benefits

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MOLINE, Ill. - The law firm representing a group of Deere & Co. retirees upset over changes in their benefits has filed a claim seeking administrative relief with the company.

The claim alleges that the company violated the terms of the plans - to continue health benefits in retirement on the same basis as during active employment - last year when it changed health benefits for its flex retirees. The claim was sent July 1 to Deere's plan administrators by attorney Susan Martin of Martin & Bonnett, the Phoenix law firm representing the Flex Retirees Organization, or FRO.

FRO president Bill Gabbard said Thursday that the claim is the final action the group must take ahead of any litigation. "You have to exhaust their administrative relief before you go outside the company," he said.

The claim requests that Deere restore the Flex Retirees to the level of benefits in effect on Dec. 31, 2007, and make them "whole for all losses they have suffered as a result of unlawful changes and violation of the plans." The group also is seeking attorneys' fees.

Within the claim are several examples of how Deere retirees have been forced to forego treatment or service or have paid higher costs since the plan change. The retirees are identified by initials and their former jobs with Deere.

For flex retirees under age 65, the claim alleges "Deere implemented radically inferior health care benefits and coverage."

Deere spokesman Ken Golden confirmed that the company has received the letter from Martin & Bonnett. "Deere is evaluating the letter and will respond in a timely and appropriate manner," he said.

"Deere has successfully implemented a program that provides to our retirees quality health care benefits with financial support from the company and greater flexibility for individual participants," Golden said, adding that the company "at all times has reserved the right to revise benefit plans provided to the company's employees and retirees."

Martin & Bonnett indicated that it is representing more than 1,200 former salaried employees. Gabbard said that number is equal to those who initially returned signed retainers to the law firm. However, he said there are an estimated 5,000 retirees who were affected by the benefit changes.

"We expect the claim will cause an upsurge in financial contributions and more retainers being returned," he said. "This is a big step."

Deere has not responded to the claim, he added.

"Once we get the response, we'll talk with the law firm (about a lawsuit)," he said. "The next step would be the big one, unless Deere would say 'We want to sit down and talk.' "

Contact Jennifer DeWitt at (563) 383-2318 or jdewitt@qctimes.com.

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