Mat-Su Borough employees settle out of court

A dispute over Mat-Su Borough emergency services workers retirement benefits has been settled out of court. According to the Borough, nine workers involved in the dispute will be paid a total of $160,311 plus attorney fees.

Mat-Su Borough manager John Moosey says the Borough admitted no wrongdoing.

“We don’t believe the Borough’s in the wrong, but a settlement avoids the uncertainty of a trial, and avoids the negative impacts to our Borough operations.”

The dispute over retirement eligibility began when the Borough revised its definition of “employee.”

The Borough signed on to the state’s PERS retirement plan in 1968.

During the 1970s, Borough EMS workers were volunteers, later on becoming part time, or full time paid workers. A couple of years ago, the Alaska Division of Retirement and Benefits asked the Borough to reclassify it’s employee categories. Moosey says the nine plaintiffs disagreed with the Borough’s recent categorization, which did not entitle them to retirement benefits, and they sued.

Moosey says the settlement leaves no possibility of appeal.