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Health Benefits for Retirees: 'Memoranda of Understanding' with Union May Cause Unexpected Vesting
Best Best & Krieger LLP
Apr. 9, 2013 "[T]he Court of Appeal ... made a number of points: ... Because the rights of public employees and the obligations of public employers with respect to things such as retiree health and pension benefits generally are interpreted by the same rules as private contracts, not only may local governments be bound by implied contracts, but they also will be bound by the express terms of their [Memoranda of Understanding (MOUs)]. The IBEW MOU could be interpreted to create a benefit obligation that not only extended to current or active employees, but to 'future retirees' as well." [International Brotherhood Of Electrical Workers, Local 1245 v. City Of Redding, 210 Cal. App. 4th 1114 (2012)] MORE >> |
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