Responders Settle With Borough on PERS

The Matanuska-Susitna Borough is settling out of court and paying nine emergency responders a total of $160,311 plus attorney fees in response to their claims of owed retirement benefits.

Borough Manager John Moosey is pleased that the dispute with employees has ended. “We value the service of these responders. We don’t believe the Borough was in the wrong, but the settlement avoids the uncertainty of a trial and avoids negative impacts to Borough operations,” Moosey said.

At the center of the dispute is a disagreement between the State and the Borough regarding the definition of “employee.” As the Borough has grown from rural to more urban, the way responders are paid has also changed. In the 1970s, Borough responders volunteered their time. That service has transitioned today to responders earning pay while responding to an emergency scene and, for some, full time employment. The Alaska Division of Retirement and Benefits audit via the Public Employees’ Retirement System asked the Borough to redefine its categories of employees.

In exchange for the settlement money, the plaintiffs agree to drop all PERS challenges, said Nicholas Spiropoulos, Borough Attorney.

Attached are two court documents, an amended complaint and the Borough's response to the complaint. The complaint was initially filed in State court but the Borough "removed" the case to federal court when the plaintiffs added a civil right's claim. The notice of removal is with the complaint.

For more information contact Manager John Moosey at 861-8557.