Omaha Public Radio News
11:39 am
Wed May 19, 2010

Lawsuit filed after Council vote on retiree health insurance premiums

Omaha, NE – A lawsuit has been filed following the Omaha City Council's vote requiring retirees to pay health insurance premiums.

Councilmen voted unanimously Tuesday in favor of the plan. Starting July first, retirees will pay 25, 30, or 35 percent premiums per month for health insurance. For some retirees, that means $487 a month.

John Corrigan is one of the attorneys representing the retiree unions. He says the Council's action is a breach of contract and a violation of Constitutional rights. Corrigan says the lawsuit seeks a permanent injunction to keep the new ordinance from taking effect. He expects the case to be before the U.S. District Court before July first.

In a statement, City Attorney Paul Kratz says the legal department is ready "to defend the actions of the city."