A new California appellate court decision affirmed the denial of retiree medical benefits and reinforced a 2011 California Supreme Court ruling that absent clear contractual language or convincing extrinsic evidence of intent, the presumption is that a Memorandum of Understanding (“MOU”) does not create rights that survive the term of the contract.
Specifically, the California Court of Appeal ruled in an unpublished decision, Vallejo Police Officers Association v. City of Vallejo, 2017 WL 3600572, that the MOU between the Vallejo Police Officers Association (“Police Association”) and the City of Vallejo (“City”) did not provide a vested right to retiree medical benefits that covered insurance premiums up to the full cost of a Kaiser health plan. The court determined the Police Association did not sufficiently show that the City intended the promise relating to retiree medical benefits to survive beyond the term of the MOU.
For more detail and insight, please read AALRR’s Alert about the decision.
Nate Kowalski is Chair of the firm’s Public Entity Labor and Employment Practice Group. He is an accomplished litigator who represents employers in both the private and public sectors. Mr. Kowalski has litigated hundreds of ...
Jorge Luna has been practicing law since 1996 in a variety of areas, including employment, construction, business litigation, intellectual property and entertainment. For the past 12 years, Mr. Luna has focused his practice ...
Joshua Morrison represents California public school districts in all aspects of general education law. His areas of specialty practice include public employee discipline/dismissal, administrative hearings, matters before ...
Other AALRR Blogs
- Be Cautious About “DROP” Programs
- California Supreme Court Hears Cal Fire Oral Argument
- Amortization Period for New Debt Shortened to 20 Years
- New CalPERS Compensation Limits, Effective Immediately
- CalPERS Responds to Its Critics
- Senate Bill 525 Amends California Public Pension Laws
- New Stanford University Study Predicts Public Pensions Costs in California to Consume 14-17.5% of Operating Expenses by the Year 2030
- New Law Penalizes Employers Who Fail to Provide Information About Annuitants Working During Retirement
- Appellate Court Holds That MOU Does Not Provide Vested Interest in Retiree Medical Benefits
- PERB Allows School District to Enforce Longstanding, but Previously Unenforced Limits on the Employer Contribution for Post-Retirement Medical Benefits