June 18, 2015

Benefit available members of union pursuant to a "Memorandum of Agreement" was a “vested lifetime benefit”


Benefit available members of union pursuant to a "Memorandum of Agreement" was a “vested lifetime benefit”
Port Auth. of N.Y. and N.J. v Union of Automotive Technicians, 2015 NY Slip Op 05114, Appellate Division, First Department

Due to budget constraints, the Port Authority of New York and New Jersey [Port Authority], effective January 1, 2011, discontinued its free E-Z Pass program available to retired Port Authority employee.

The Appellate Division unanimously affirmed a decision by Supreme Court modifying an arbitration award to rule that the E-Z Pass benefit as encompassed in the parties' 2006-2011 Memorandum of Agreement was a vested lifetime benefit available to retired members of the Union of Automotive Technicians in accordance with the provisions set out in the parties' 2006-2011 Memorandum of Agreement.

The court noted that “In light of our disposition of previous appeals raising the same issue, Supreme Court reached the right result in this matter,” citing Port Authority of New York and New Jersey v Port Authority of New York and New Jersey Police Lieutenants Benevolent Association, 124 AD3d 473, among other relevant decisions.

NYPPL’s summary of the Supreme Court’s ruling in the Lieutenants’ case is posted on the Internet at: http://publicpersonnellaw.blogspot.com/2013/06/article-75-petition-seeking-to-confirm.html

The Automotive Technician decision is posted on the Internet at: