August 5th ruling, here is the link.
Here is the text
August 5, 2014
The Supreme Judicial Court has upheld the authority of boards of selectmen to determine the percentage of health insurance premiums for which a town will be responsible. In Twomey and others v. Town of Middleborough, the plaintiffs, retired school and municipal employees, argued the Middleborough Board of Selectmen did not have the authority to decrease the town’s contribution rate from 90 percent to 80. They argued that such a change must be made by the town meeting.
The SJC ruled, however, that state law (M.G.L. Ch. 32B, Sec. 16) allows for the “appropriate public authority” to make decisions regarding retiree health insurance contributions. In the case of a town, the appropriate authority is the board of selectmen. The selectmen voted to change the town’s contribution rate in May 2009. The town’s retirees argued that town meeting should make the decision, based on its decision-making authority over municipal appropriations. They put a warrant article before town meeting to lock the town in at a 90 percent contribution rate, and the article passed.
“The town’s board of selectmen has the authority, pursuant to [Chapter 32B, Section 16], to establish the percentage of the total monthly premium for HMO coverage that is to be paid by the town’s retired employees,” the SJC ruled on June 2. “In contrast to the comprehensive authority of the board of selectmen to effectuate the provisions of [Chapter 32B, Section 16], the role of the town meeting is substantially more limited.”
Another case is pending before the SJC regarding the city of Somerville’s obligation to bargain with its labor unions over an increase in active employees’ health insurance contributions when they retire. That case has not yet been heard.
In other words if you think 25% retiree share for health insurance is high, what do you think it will become if the 600+ million OPEB gap is not addressed?? We need to start having discussions like this video below.
