A proposed class action lawsuit has been filed against the school district for allegedly breaching contractual obligations to employees regarding retiree group health and hospitalization insurance. The lawsuit was filed in St. Louis County District Court in Hibbing on behalf of 100 Chisholm teachers and spouses.
The lawsuit claims the Independent School District No. 695 breached its contractual obligations that were set forth in the collective bargaining agreement between the school district and the teachers' union, Chisholm Local 1276, by reducing its contribution towards premiums for former employee coverage and its contribution towards spouses.
Retirees have been forced to pay the school district monthly payments in varying amounts, dependent upon whether they elected single or dependency coverage and whether or not they or their dependents were eligible for Part A or B of Medicare in excess of amounts they would have to pay if the school district honored its contract.
