Potentially precedent setting ruling opens the door for governments statewide to slash worker benefits.
By Andy Cohen
Last month, a state appeals court confirmed a lower court ruling that retiree health benefits are not vested benefits, as are employee pensions, and therefore are not subject to the same rules that apply to pension benefits.
The original lawsuit was filed on behalf of a retired police officer who sued the city because the it placed a cap on the premiums it would pay on her retiree health benefits. The cap, she said, fell $600 short per year of covering the full premium. Her attorneys argued that, according to the city’s agreement with the San Diego City Employees Retirement System (SDCERS), the city had to pay the full premium on medical benefits for all eligible retired city workers.
The courts disagreed, noting that, according to the city’s municipal code, “Health plan coverage for retirees and eligible dependents is subject to modification by the City and the provider of health care services, and may be modified periodically as deemed necessary and appropriate.” [Read more…]












