Rochester Unions Accuse City of Misusing Healthcare Funds; City Says Benefits Are Fully Funded

Four Rochester municipal unions are accusing the City of Rochester of improperly using money from a joint healthcare fund for retiree medical costs, saying the funds were contractually reserved for active employees. The city, however, says it has fully met—and will continue to meet—its healthcare obligations and that the joint committee overseeing the account has operated collaboratively for more than a decade.

In a joint statement, the presidents of IAFF Local 1071, the Rochester Police Locust Club, AFSCME Local 1635 and Operating Engineers Local 158 said city officials informed them that money from the joint healthcare account had been used to pay healthcare premiums and expenses for retired employees under age 65. The unions say the account exists solely to fund active-employee healthcare costs.

The unions said the city acknowledged the shortfall and promised to present a reimbursement plan within two weeks. They called for full transparency about how money moves in and out of the account, noting that the labor-management agreement governing healthcare benefits runs through 2026.

“The unions expect complete transparency and visibility from the City about how funds move in and out of the joint healthcare account,” the statement said. “The unions expect that the City will abide by all of the terms of the agreement that the City and the unions negotiated.”

In response, Barbara Pierce, Director of Communications for the City of Rochester, said the Labor Management Health Care Committee—made up of both city administrators and union representatives—has collectively overseen the City-funded healthcare account for more than a decade.

“City retirees under age 65 receive the same healthcare benefits as active employees, and the City funds, and will continue to fund, all of its healthcare commitments,” Pierce said in a written statement.

She added that the committee will spend the coming weeks “working together to come to a better mutual understanding, to be reflected in clear, express contractual language, of how retirees’ healthcare benefits are funded.”

The unions say they will review the city’s reimbursement proposal once it is delivered, and they emphasize that they expect stronger oversight mechanisms going forward.

The city says it remains committed to collaborative problem-solving through the health care committee.

The joint statement from the unions was signed by Matt Murphy of IAFF Local 1071, Geoff Wiater of the Rochester Police Locust Club, Mike Rivera of AFSCME Local 1635 and John Tarasuk of Operating Engineers Local 158.

Neither side indicated that employee or retiree healthcare coverage has been interrupted.