A federal lawsuit filed last week against Consolidated Nuclear Security, the government’s managing contractor at the Y-12 National Security Complex, claims the contractor violated “written and verbal” commitments made to retirees when it made significant changes that reduced their healthcare benefits. The complaint, which was filed in U.S. District Court in Knoxville, states, “The plaintiffs … were defrauded by being led to believe that their employment agreements provided them with a specific level of benefits.” Some employees reportedly took early retirement based on that information, according to the court documents.
Knoxville attorney Greg Coleman filed the suit on behalf of retired Y-12 employees Betty Hatmaker and Charlene Edwards, but it seeks class-action status on behalf of thousands of retirees and surviving spouses and/or dependents. Hatmaker and Edwards were two of the organizers of protest rallies late last year to draw attention to the forthcoming benefit changes. The complaint says that CNS invoked the changes to Y-12 retirees’ benefits on Jan. 1, 2015, “which significantly altered the cost, coverage and value of their healthcare benefits.” The lawsuit asks that benefits be restored to the prior level or that the affected retirees be reimbursed for out-of-pocket costs incurred as a result of the changes. CNS spokesman Jason Bohne said the contractor had not received a copy of the federal lawsuit and had no comment.