Supreme Court Grants Certiorari to Review Sixth Circuit’s Pro-Union Inference in Retiree Health Insurance Benefits Cases

By on May 7, 2014

The Supreme Court of the United States has agreed to resolve a circuit split about how courts should interpret collective bargaining agreements that provide for health insurance benefits for retired employees in M&G Polymers USA, LLC v. Tackett.  The U.S. Court of Appeals for the Sixth Circuit says that such retiree health insurance benefits carry with them an inference that they are vested, or guaranteed to continue for life, while the majority of the other federal appellate courts require specific durational language to find that benefits are vested. Given the high cost of retiree health insurance on many employers’ balance sheets, M&G Polymers USA could represent a game changer for employers’ ability to modify retiree benefits going forward.

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Wilber H. Boies, PC
  Wilber (Bill) Boies focuses his practice on business dispute counseling and business litigation throughout the country. Bill regularly represents benefit plan sponsors and fiduciaries in Employee Retirement Income Security Act (ERISA) class action litigation concerning pension plan administration, fiduciary duty, responsibility for asset losses, and changes in welfare benefits. Read Bill Boies' full bio.

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