Public employee retirees in Alaska secured an important victory in June when the state Supreme Court ruled that a provision in the state constitution prohibits the state from diminishing retiree health benefits.

The decision affects more than 20,000 retired public employees covered by Alaska’s Public Employees’ Retirement System and Teachers’ Retirement System. Both systems are operated by the state.

“This ruling means the state can’t take away what it promised to provide,” says Bruce Ludwig, business manager of the Alaska Public Employees Association, an affiliate of AFT Public Employees. “Retiree medical benefits can’t be cut or the cost increased—and they can’t be changed unless the state provides other, similar health benefits of like value.”

In fact, the Supreme Court ruling goes beyond protecting the health benefits of current retirees, explains Sam Trivette, president of the APEA-affiliated Retired Public Employees of Alaska (RPEA), which initiated the lawsuit in 2000.

“When people are hired, they are told about the benefits package,” says Trivette. “What they are told at that time is what the state must provide. They can’t change the rules after the fact. The court said it is the coverage provided rather than the cost to provide the health benefits that is constitutionally protected.”

Trivette says the RPEA filed the lawsuit in response to changes in the retiree health benefits plan “that increased the cost of medical coverage for retirees,” including higher deductibles.

For Trivette’s family, which he says has had “no major medical issues” since the changes went into effect, the downsized benefit has “easily cost many hundreds of dollars.” For retirees with medical issues, the “cost could easily go into the thousands,” he says.

NEA-Alaska and the Alaska State Employees Association followed RPEA’s lead and filed lawsuits challenging the changes. A superior court combined the three suits.

The Alaska Supreme Court is returning the issue to a superior court where the parties will iron out a plan “to make people whole in the long run,” says Trivette.