health benefits refund

[cindya]

I worked for California State University EB 6 years and quit in 1996. I was fully vested and a member of PERS. Two years ago I returned to the university and was hired by the university's Foundation on a grant. I have been buying back my time with PERS and they have reinstated by years of credit. The Foundation is governed by the university and abides by the university's laws and policies (whenever it suits them) The Foundation has just informed me that they are canceling all retirement health care benefits for grant employees (which I am) and not regular employees. Is this legal? Also, when I contacted them regarding the monies that they have deducted for this benefit to be refunded, they replied it was up to the Executive Board and they had not made a decision as yet. A Vice President friend of mine told me on the qt that the Foundation had an $8 million dollar shortage due to mismanagement of funds, thus the reason for canceling our insurance. Can they legally keep the money paid into this account and not refund it?