| Uphold on AK Steel Retirees |
| Thursday, April 9, 2009 10:56:22 PM - Middletown Ohio |
 By: Tara Kunkle
Recently the federal appeals court upheld a ruling that was in favor of a $663 million settlement agreement between AK Steel Corp. and the Middletown Works retirees. The U.S. Sixth Circuit of Appeals Judges Eugene Siler, Deborah Cook and David McKeague had confirmed in February of 2008 a ruling that was by the U.S. Southern District Court in Cincinnati. It was an effective ending to a class-action lawsuit filed in July 2006 over healthcare by the Concerned Armco/AK Steel Retired employees.
In an interview with the Middletown Journal Rev. Michael Bailey the president of Concerned Armco Retired Employees said the worst-case scenario was that they would have to go back and renegotiate and that they are elated by the decision. With the agreement that AK Steel was under they will have to transfer their healthcare priorities for Armco and AK Steel retirees to a Voluntary Employees Beneficiary Association trust. There will be $663 million from the company that will go towards VEBA over a four-year period. It will transfer all of its retiree health care obligations to the trust.
There VEBA plan was started 11 months ago therefore Bailey said it declines in the stock market and have eaten out $100 million from the $468 million in the fund. With the market situation the members will be paying 20 percent more for premiums and 25 percent more for prescriptions that will start on June 1st. The deductibles will have an increase of $100 beginning January 1, 2010.
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