October 26, 2012

Maine high court upholds Millinocket vote to cut benefits

Citing rising costs, the council had voted in 2009 to end the free health care benefits paid to 29 town workers and retirees.

The Associated Press

MILLINOCKET — Maine's highest court has upheld a Millinocket Town Council vote to eliminate lifelong life and group hospitalization insurance coverage to 29 town workers and retirees.

The Supreme Judicial Court on Thursday affirmed the town's opposition to a class-action lawsuit.

Citing rising costs, the council voted 7-0 in May 2009 to end the free health care benefits paid to the retirees. Since 1999, the town's portion of retiree health benefits had increased from as little as $282.40 a month in 1999 to $599.44 a month in 2009, under a typical plan.

In their appeal, the workers and retirees argued that the council vote was a breach of contract.

Current council Chairman John Davis, who was not on the council in 2009, told the Bangor Daily News the decision is "bittersweet."

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