At issue is as much as $60 million in savings for the city over the next 30 years. The retirees sued the city three years ago, claiming it did not have the authority to change the health benefits it provided them at the date of their retirement.
The city argues that it's required by contract to provide retirees with the same type of insurance coverage it gives its current employees. District Judge Kenneth Sandvik ruled in October 2009 that the city can modify the benefits whenever the coverage for its current employees is adjusted.
The retirees appealed the judge's ruling. The Duluth News Tribune says the Court of Appeals largely upheld the lower court's decision.