By JAMES FINK
Business First

Angered over the prospect of losing lifetime health-care benefits, former employees have filed a civil lawsuit against Xerox Corp. seeking to have their benefits package restored.

The suit by the Association of Retired Xerox Employees Inc. was filed late Tuesday in U.S. District Court for the Western District of New York and is expected to be heard in Rochester.

Xerox had previously announced that up to 25 percent of its retirees will be stripped of supplemental health-care coverage beginning next year. Xerox had promised lifetime health benefits for all of its retirees, the association alleges.

Association officials said many of the affected retirees had "relied, worked and made retirement decisions based on Xerox's annual guarantees."

"Retirees are in the disturbing and unenviable position of having to initiate litigation against their former employer to preserve the benefits promised to them for their lifetime of work," David Coriale, Association of Retired Xerox Employees Inc. chairman, said in a prepared statement.

The association has retained the Buffalo law firm Baase Pfalzgraf Cunningham & Coppola LLC and Rochester attorney James Marino to handle the lawsuit.

Xerox officials declined to comment.

"We don't comment on pending litigation," said Carl Langenskamp, Xerox spokesman.

In the filing, the association alleges that members used to receive annual documentation from Xerox assuring them of guaranteed medical and dental benefits for retirees.

In what is viewed as cost-cutting measure, Xerox announced plans to cap company contributions for certain health-care benefits.

Some longtime Xerox retirees lost a fully paid health plan in exchange for the company's fixed contribution, based on years of service. Xerox earlier this year announced plans to eliminate its "Post-65" benefits program for certain retirees. That move triggered the lawsuit, association officials said.

The cuts are expected to save Xerox $11 million annually. The Norwalk, Conn.-based company, which has more than 54,000 employees worldwide, has annual revenues of more than $15 billion.

The association said by dropping the "Post 65" benefits program, Xerox will save less than one percent of the $4 billion stock-repurchase program it began last year.