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NewsAugust 2, 1991

A group of school teachers and administrators in Missouri are attempting to exclude themselves and the school districts they work for from a lawsuit that would potentially cut teacher retirement benefits. The Association of School Business Officials of Missouri is spearheading an effort to fight the class-action lawsuit, which will affect all Missouri school districts, and names all of them as plaintiffs...

A group of school teachers and administrators in Missouri are attempting to exclude themselves and the school districts they work for from a lawsuit that would potentially cut teacher retirement benefits.

The Association of School Business Officials of Missouri is spearheading an effort to fight the class-action lawsuit, which will affect all Missouri school districts, and names all of them as plaintiffs.

Larry Dew, business manager for the Cape Girardeau School District and president of the organization, said the district will attempt to be excluded from the suit.

"We have asked our attorney to opt us out of it," Dew said. "We have a number of retired people or people about to retire who have planned on a specified retirement payment.

"This might be a short-term gain for retired teachers, but they would lose in the long run."

If the Public School Retirement System loses the case, it may decide to cut benefits to make up for refunds it will be required to pay out to teachers and school districts, said an attorney for the organization.

An attorney for the school districts who filed the suit said cuts in retirement benefits are not an issue in the case and would have to be decided separately.

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A judge will hear arguments in the suit on Sept. 19. The suit would not automatically reduce retirement benefits, but opponents say it is a first step to doing so.

The suit prohibits individuals or districts from removing themselves from the litigation. But Cape Girardeau is just one district attempting to be excluded.

Bill Koelling, executive director of the association, said the suit unjustly names all Missouri teachers and school districts.

Koelling, 57, of Lebanon, is a retired teacher who says he stands to loose thousands of dollars if the retirement system reduces his benefits.

"The retirement system is going to have to repay me, but it's going to cost me more in the long run," said Koelling, who estimates his one-time refund would be about $630.

"Our association is trying to see if we can get the judge to reconsider the suit," he said. "As far as I'm concerned, I am not being represented fairly."

Some information for this story was provided by staff writer Peggy Scott.

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