A federal judge ruled that Deere & Co. was in compliance with ERISA when it redesigned its health benefits for certain retirees who had argued that the company reneged on its promise of full health coverage.

In Brubaker et al. v. Deere & Co., U.S. District Judge Charles Wolle of the Southern District of Iowa concluded that the company and its summary plan documents made it clear to the plaintiffs that their retiree health benefits may be amended, modified or terminated.

In 2007, the Illinois-based farm-equipment manufacturer had notified retired management and nonunion workers that it had revamped their health benefits to include cost-efficient insurance options. In addition, Medicare laws have made it easier for employers to reduce, eliminate or alter health benefits to workers who are over the age of 65 and eligible for Medicare. The class-action lawsuit stemmed from about 5,000 retirees contending that the new benefits were not up to par with previous coverage.

“Although some retirees were not interested in making a change, we will continue to work to show how the new program supports the health care needs of John Deere retirees,” said Mert Hornbuckle, Deere's vice president of human resources, in a statement last week on the court ruling. “We have been encouraged that most of those who are covered by the benefit program found it to be reasonable, fair, and effective,” he added.