|
High Court Rules Against Retirees in Union Health Benefits Case*
|
|
|
 Jan. 27, 2015 | RETIREMENT | The Supreme Court on Monday ruled that a chemical company may be able to cut the health benefits of its retired workers, unanimously reversing an appeals court ruling that said the benefits had vested for life. “Courts should not construe ambiguous writings to create lifetime promises,” Justice Clarence Thomas wrote for the court, adding that “retiree health care benefits are not a form of deferred compensation.”…The case concerned a union contract at the Point Pleasant Polyester Plant in Apple Grove, W.Va. Like many other collective bargaining agreements, it did not directly say whether health benefits for retirees would vest for life. Full story here. Related: In a case seen as a victory for corporate America, the justices ruled these promises should not be treated as "vested rights" unless they are spelled out in the contract. *Update: Justices say case isn't closed.
|
|
|
|
