Providence retirees get support from judge
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January 31, 2012
Rhode Island: Rhode Island Superior Court Justice Sarah Taft-Carter ruled on Jan. 30, 2012 that the City of Providence cannot change the healthcare coverage of its fire and police retirees. Last year, the city decided to move retirees from the fire and police departments from Blue Cross to Medicare when they turned 65. The change was estimated to save the city $9 million annually. The retirees sued and Judge Taft-Carter issued a preliminary injunction. The judge has now ruled that the city can't make the switch because of a contract provision that promised the retirees lifetime health coverage. Currently, the city is $1 billion over their heads in unfunded liability for retiree healthcare costs.[1]
UPDATE: The Rhode Island Supreme Court declined to grant Providence an expedited appeal on Feb. 10. The justices wrote, "We see no need to engage in a precipitate consideration of issues which are best resolved with the aid of a more complete record." Judge Taft-Carter will proceed with a full trial scheduled for May 21.[2]
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