Court Rules in City's Favor: Allowed to Amend Retiree Contract

By KBJR News 1

August 1, 2012 Updated Aug 1, 2012 at 6:20 PM CDT

Duluth, MN (Northland's NewsCenter) - The City of Duluth is considering a recent St. Louis County District Court ruling a victory in a case involving the health care benefits of its retired employees.

The decision follows a November 2011 ruling by the Minnesota Supreme Court, that stated the city had not breached their contract by modifying medical benefits it offers to retirees.

According to City Attorney, Gunnar Johnson, reducing the medical benefits offered to retirees was tough, but it ensures that the city will not go bankrupt, while still offering exceptional care for retirees.

Former Duluth police officer, Eli Miletich, however, claims that the amending of a promise made by the city to its employees is a slippery slope.

"Any time management wanted to say, 'we're going to disregard that portion of the contract,' they're going to get away with it. And, I hope that the rest of general society realizes that," said Miletich.

Retired city employees are now on the same, amended health care plan that all current city employees receive.