Employment – Public employment – vested rights

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Wisconsin Court of Appeals

Civil

Employment – Public employment – vested rights

Although entitled to health insurance for the rest of their lives, New Berlin police retirees do not have a vested right in having all deductibles covered.

“A close examination of Section 5.02 shows that the contracting parties meant it to be limited in duration. Section 5.02 says the standard health insurance program they will provide to employees is ‘[e]ffective January 1, 2009.’ Within that section, the City reserves the right to change carriers for the standard coverage and offers police officers the opportunity to participate in an alternative plan. Nothing in this section indicates an open-ended promise like the one in Section 5.03. Section 5.02 does not promise that the standard plan taking effect on January 1, 2009, will be offered indefinitely, nor does it say that the alternative plans will always be available. None of the broad, open-ended language in Section 5.03 is found in Section 5.02. Simply put, Monreal’s contention that he has a vested right to the same health insurance coverage as detailed in Section 5.02 does not hold water. Unlike Section 5.03, nothing in the CBA indicates that the contracting parties meant for the rights granted in Section 5.02 to endure beyond the contract’s expiration. No law or policy in Wisconsin freezes a contract of limited duration in time unless its language calls for that result. In this case, the language of the contract states that the rights granted to Monreal under Section 5.03 are vested and extend beyond the expiration of the CBA, but those contained in Section 5.02 terminate with the agreement.”

Reversed and Remanded.

Recommended for publication in the official reports.

2014AP456 Monreal v. City of New Berlin

Dist. II, Waukesha County, Haughney, J., Brown, J.

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