Duluth City Retirees Take Insurance Case To Court

DULUTH, Minn. (AP) — The Minnesota Supreme Court is considering whether the City of Duluth can change health insurance benefits for its retirees to match those of its current employees.

At issue is as much as $60 million in savings for the city over the next 30 years. The retirees sued the city three years ago, claiming it did not have the authority to change the health benefits it provided them at the date of their retirement.

The city argues that it’s required by contract to provide retirees with the same type of insurance coverage it gives its current employees. District Judge Kenneth Sandvik ruled in October 2009 that the city can modify the benefits whenever the coverage for its current employees is adjusted.

The retirees appealed the judge’s ruling. The Duluth News Tribune says (http://bit.ly/mCRo8I) the Court of Appeals largely upheld the lower court’s decision.

(© Copyright 2011 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

  • Hmm

    I don’t think retirees insurance should change. Had they known it could change they could have prepared by saving more money during their time working. A lot of people plan retirement costs based on insurance cost and to change the insurance cost without the ability of the retiree to work more or get a job to cover the cost then you are just asking for trouble. If a retiree cannot afford what they have they will still get treatment and the costs will eventually be pushed off to the taxpayers anyway.

    • Grandma

      Why should they be any different than any other retiree. Ohter companies can change their retiree benefits at any time. There are no guarantees for anything. Truthfully, I am sick and tired of paying for all the benefits for State and Federal employees and the retirees!!!!

    • Mr. Mark


  • Alanna Martin

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