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Monday, September 23, 2013

Retiree Health Changes

Yesterday, this blog noted the upcoming UC open enrollment period and changes in the various health care options. Among them were what appeared to be rather drastic changes for retirees living outside California. One wonders whether the court ruling noted below might have some relevance for the ability of UC to make such changes.  Any legal scholars want to chime in?  Comments welcome.

A superior court judge overturned a freeze on retiree health care for Los Angeles city attorneys this month, citing some of the same case law that made public pensions a vested right that can only be cut if offset by a new benefit.
 
The court ruling is a blow to the view that state and local governments, when looking for cost savings, may be able to make cuts in promised retiree health care that are not allowed for tamper-proof pensions...

(P)art of the legal rationale for the Los Angeles retiree health care option is a provision in the city charter that specifically reserves the right to modify retiree health care benefits...

Full story from calpensions.com at http://calpensions.com/2013/09/23/judge-rules-retiree-health-protected-like-pension/

The actual court decision is at http://www.lacaa.org/docs/13-09-13-order-granting-writ.pdf

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