The California Supreme Court has ruled that state and local governments cannot eliminate health benefits for retired workers if those benefits had been promised to workers. The ruling will make it harder for governments to cut costs by cutting health care benefits for retirees if benefits were promised for a lifetime. The Court ruled that those workers had an implied contract with the government under California law.
See "Retired public workers can count on promised benefits, court says", Maura Dolan, Los Angeles Times, November 21, 2011