No Presumption of Vesting in Retiree Health Benefits

The Supreme Court held that ordinary contract principles apply in determining whether retiree health benefits are vested.

Document Excerpt’

In this case, the Court of Appeals applied the Yard-Man inferences to conclude that, in the absence of extrinsic evidence to the contrary, the provisions of the contractindicated an intent to vest retirees with lifetime benefits. Tackett II, 733 F. 3d, at 599–600. As we now explain, those inferences conflict with ordinary principles of contract law.

Link

http://www.supremecourt.gov/opinions/14pdf/13-1010_7k47.pdf

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