DC 37 expects to file a lawsuit next month to force the city to fully reimburse retirees’ Medicare Part B premium payments.

Although the City Council overrode the Mayor Giuliani’s veto of the legislation requiring the city to pick up the full cost of the premiums, the administration has still refused to implement the law.

The legislation would save retired municipal workers nearly $100 a year.

After the City Council overrode his veto in the summer, the mayor said he would go to court to fight the law, which he claimed interfered with management rights. In the fall, the administration filed its lawsuit.

At the District Council 37 Executive Board meeting on Nov. 14, DC 37 Administrator Lee Saunders and Deputy Administrator Dennis Sullivan, who is director of research and negotiations, discussed the union’s pending lawsuit to make the city fund the premium payments.

DC 37 Retirees Association president Stuart Leibowitz sharply criticized the mayor and applauded the impending court action, which is being prepared by Sr. Assistant Counsel Mary J. O’Connell.

He described Mr. Giuliani as the “scourge of retired city employees” and said he is “taking food out of our mouths.”

Because of the dispute over the legislation, Mr. Giuliani delayed paying retirees this summer and, finally, reimbursed them $384 at the old rate. Under the new rates, retirees were due $464.40.

Medicare Part B covers physician services, hospital outpatient care, durable medical equipment and other services rendered outside hospitals.

The cost or premium is automatically deducted from retirees’ monthly Social Security checks, and for decades, the city has sent the annual reimbursement checks in the summer.