Pensacola, FL, Mar. 22--Thousands of area Solutia Inc. and Monsanto Co. retirees wondering about the future of their health insurance and other benefits probably won't have an answer for two years.
That was one of the messages St. Louis-based attorney Nicholas Franke brought to the Association of Monsanto/Solutia Retirees annual meeting Thursday.
More than 1,000 retirees attended the meeting at Marcus Pointe Baptist Church. Most never worked for Solutia but find their benefits at risk because of the company's December bankruptcy. That's because Solutia was spun off from Monsanto in 1997, taking much of the company's retiree and environmental liabilities with it. Solutia operates a nylon plant in Gonzalez.
"During my working years with Monsanto, I thought I was a very lucky individual," said Don Young, 71, who worked for the company from 1954 to 1985. "When I was switched to Solutia, I was surprised. I was dismayed a little bit later when I realized what was happening."
Solutia reduced the retirees' benefits in 2001, and, as part of its bankruptcy, is trying to transfer responsibility back to Monsanto, Pharmacia & Upjohn Inc., or possibly even Pfizer Inc. All three companies have merged since the 1997 spinoff.
Franke said the merger could benefit the retirees.
"The idea is to get as many sources involved in paying these benefits as possible," he said.
Franke's firm - Spencer, Fane, Britt & Browne - is representing a committee of seven retirees appointed by the New York bankruptcy court to represent the approximately 25,000 retirees and dependents involved in the case. The case involves only the retirees' health, life and disability insurance, not pensions.
Solutia must continue to pay for the insurance coverage while the litigation is going on unless relieved of the responsibility by the judge. Franke said that is unlikely.
The next important benchmark in the case will likely happen next month when Solutia represents its business plan to its board.
Like many at the meeting, Mildred Williams, 75, said she found the presentation helpful. However, the 30-year Monsanto employee didn't walk away overly confident.
"I still got questions, but he (Franke) couldn't answer all of them," she said.
