ALBANY, N.Y., February 2 – By a vote of 5-0, the New York State Supreme Court, Appellate Division, Third Department, has upheld the Public Employees Federation (PEF) in its lawsuit against the state, which concerned Medicare Part B.

PEF filed the lawsuit in January 2006 with the New York State Correctional Officers and Police Benevolent Association, the New York State Police Investigators Association, and the Organization of Management/Confidential Employees, when it argued that the state violated the law, for the 40 years prior to 2006, by unilaterally requiring state employees and retirees (enrollees in the NYS Health Insurance Program, or NYSHIP) to pay a portion of the states Medicare Part B reimbursement expenses as part of their health insurance premium payments.

The lawsuit was first argued before the Albany County Supreme Court, which dismissed the petition. The Appellate Division ruled that based on the plain language of Civil Service Law 167-a, the legislative history of Civil Service Law Article 11, and the states correct, long-standing interpretation of that statutory scheme, the states newer January 2006 interpretation is arbitrary, capricious, and contrary to law.

We have been informed the state will not attempt to appeal this unanimous decision of the Appellate Division, said PEF associate counsel Harold Eisenstein who represented PEF in this case.

The United University Professions, Civil Service Employees Association, and American Federation of State, County, and Municipal Employees District Council 37 filed a suit on the same issue in March 2006, but their arguments were found to be without merit. The Retired Public Employees Association filed an amicus curiae brief in support of the cases.