Michigan’s Retiree Medical Benefits Can Be Cut, 6th Cir. Says

Unions across Michigan might want to recheck their collective bargaining agreements after an appeals court ruled that health-care benefits for retirees can be adjusted by local governments if the CBAs didn’t specify that the benefits were “vested for life” (Serafino v. City of Hamtramck, 2017 BL 2017 BL 308909, 6th Cir., No. 16-2370, 9/1/17).

Supporters and opponents agree that the opinion provides employers—both public and private—with great leeway in cutting benefits for retirees.

Representatives of municipalities and advocates for small government argue that the ruling will help cities manage tight budgets. But union representatives say reducing benefits is ...