UPDATE JANUARY 2022: Indiana Supreme Court decides case of first impression declaring corporate policy of Clark County REMC did not create obligation to pay retired directors' lifetime benefits. To read more about this decision, please click on the image below.
UPDATE OCTOBER 2021: The REMC has continued its flight to defend its decision to eliminate lifetime benefits for "retired" directors at the Indiana Supreme Court. The five Justices on the Court heard oral arguments where the litigants debated whether the co-op should pay the costs of health insurance for the rest of the lives of four past directors. A video of the oral argument can be view online here.
UPDATE JULY 2021: On July 19th, 2021, Clark County REMC received notice that the decision rendered by the Indiana Court of Appeals in Case No. 20A-CT-00622 has been set aside. The case has been transferred to the Indiana State Supreme Court for review. The REMC and its current board of directors continue to defend the right to set policies that are in the best interest of the cooperative and its members. Oral argument has been scheduled for October 7, 2021, at 9:00 a.m. in the Courtroom of the Indiana Supreme Court, 317 Statehouse, 200 West Washington Street, Indianapolis, Indiana. Oral argument will be available for public viewing on the Supreme Court webcast page.
UPDATE FEBRUARY 2021: Your current Board of Directors, acting on what it believes to be the best interests of its members, continues to defend its right to end past Board policies which would continue compensating directors after they have left their service on the Board. The lawsuit brought by four former Board members against the REMC is now before the Indiana Court of Appeals. On January 27th, a three-member panel of appellate court judges heard oral arguments in our case. Members who wish to know more about the case can view the argument online at https://mycourts.in.gov/arguments/default.aspx?court=app under the January 27th listing.
UPDATE NOVEMBER 2020: REMC has appealed the ruling to the Indiana Court of Appeals. The appellate court will likely hand down its decision in two to six months.
MARCH 2020:In the early 1970s, health insurance costs were much less expensive than they are today. As such, health insurance coverage under the REMC‘s group plan was available to the REMC directors. At that time the Board adopted a policy allowing former directors and their spouses to receive health insurance coverage for life at the REMC’s cost. In the years since, an effort has been made by later-elected directors to eliminate this benefit. Early revisions of the policy resulted in the Board eliminating the benefit for some, but not all, directors. In 2018, following turnover on the Board, the Board terminated the policy and eliminated co-op paid health insurance for all former directors, believing that the policy is not in the best interest of the cooperative or its members. (The policy change applies only to past directors. It does not affect any employee benefits.)
After the lifetime benefits were terminated, four former directors filed claims against the REMC to reinstate co-op paid lifetime health insurance benefits. A trial court judge has recently found against the REMC in this suit, but the REMC is appealing that ruling. We, the Board, want what is best for members of the cooperative and feel strongly that the Board’s 2018 decision was lawful and appropriate. You can find all of the details at MyCase.IN.gov, case number 10C01-1808-CT-000143.