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Change in Retiree Health Benefits Violated Union Contracts

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A report from BNA indicates that Schenectady, New York, violated police and firefighter union contracts when it changed the health benefits of retired police officers and firefighters. From 1969 through 1989 union contracts all contained the identical language: "[the city] at its own expense shall provide hospitalization and major medical insurance with coverage equivalent to the plan presently in effect for each member of the department and his family, and for retired members and their families." In 1990, the city changed the plan to require increased co-payments by participants. The appellate court affirmed the lower court's summary judgment in class actions filed by retired police officers and firefighters. Rocco v. City of Schenectady, Case No. 82298 (NY Sup. Ct, App. Div., December 30, 1998).
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