MARK PETERSEN VS. TOWNSHIP OF RARITAN
A-3290-09T3 02-09-11
We are asked to examine whether the terms of a collective
negotiation agreement, which was in effect upon the retirement
of a municipal police officer, mandates that the retiree is
vested in the specific insurance benefit plan offered at the
time of retirement. As a cost cutting measure, defendant
municipality who paid for its employees' and retirees' health
benefits pursuant to N.J.S.A. 40A:10-23, discontinued
participation in the traditional indemnity insurance plan in
favor of a point of service plan. Plaintiff, who was enrolled
in the traditional plan, filed this action asserting the
municipality could not alter the type of insurance coverage he
received at retirement.
We affirmed the summary judgment dismissal of plaintiff's
complaint, determining the agreement required that he be
provided with the same benefits defendant offered all of its
current municipal employees and that defendant's contractual
obligation to pay the cost of health insurance premiums did not
create an entitlement to a particular plan or level of coverage.
