Falls Joining 12 Other Districts Pursuing Legal Action Against WEA Trust

The will join forces with 12 other districts pursuing legal action against the Wisconsin Education Association Insurance Trust (WEA Trust) to obtain their share of hundreds of thousands of dollars in federal money that is held in a trust by the organization.

During the 2010-11 school year, WEA secured federal funding from the Early Retiree Insurance Trust. The funds were intended to offset overall health insurance costs for organizations that offered early retirement benefits to employees. The district was in line to receive $267,000 from those funds over the year, but after changing insurance carriers the district received nothing.

“It’s a federal fund that operates much like ‘Cash for Clunkers,” said Director of Human Resources Christiane Standlee. “The funds are there, and they are there until they are spent or exhausted.”

The district previously worked through the WEA Trust to provide health insurance for employees, but the district beginning in the 2011-12 school year. The switch in providers is expected to save the district $1.2 million in health care costs.

But after the district left the trust, the WEA claimed the district is no longer eligible to receive the funds, which would have been paid on a pro-rated monthly basis. The district contends it could be entitled to at least a share of those funds. Hartland Lakeside is one of the 12 other districts challenging WEA.

The districts will work with Foley & Lardner out of Milwaukee, which was the only firm willing to take the case on a contingent basis. Although the firm will receive a portion of the reward, it would still be a win for all the districts involved since it is money they wouldn’t have realized if the case is won.

Standlee said she had intended to bring a letter of intent for the board to approve and move forward with the process, but board action will need to wait until the next meeting Nov. 14.