For decades, hundreds of City of Racine employees made a difficult tradeoff. Rather than negotiating higher wages, they accepted lower pay in exchange for the promise of lifetime retiree health benefits.
Years later, the City attempted to take those benefits away.
After years of litigation, 352 retired municipal employees—including police officers, firefighters and other public servants—won a landmark legal victory restoring the retirement health-care benefits they earned throughout their careers.
A Promise Made—and Broken
Retiree health benefits weren’t simply an added perk. They were part of the compensation employees negotiated and relied upon when deciding to dedicate their careers to public service.
When the City of Racine later sought to eliminate those benefits as part of an effort to reduce mounting retiree health-care liabilities, retirees found themselves facing significant, unexpected medical costs after sacrificing wage increases throughout their working lives.
Fighting for What Was Earned
Represented by Attorneys Chris MacGillis and Austin Felber from MacGillis Law Group, the retirees argued that their health benefits had vested under Wisconsin law. Once those benefits were earned and promised for retirement, the City could not unilaterally eliminate them.
The case required years of litigation and an extraordinary commitment from the legal team, including nine consecutive days of depositions conducted by three attorneys. Despite repeated attempts to delay the proceedings, the firm continued pressing forward on behalf of the retirees.
A Victory for 352 Wisconsin Retirees
The result was a decisive win.
The court restored the retirees’ lifetime health-care benefits and awarded reimbursement of more than $1 million for out-of-pocket health-care expenses incurred after the City attempted to eliminate the coverage.
For hundreds of retired public employees, it meant the promises made during collective bargaining would finally be honored.
Why This Case Matters
The decision sends an important message to public employers across Wisconsin: contractual promises made to employees cannot simply be withdrawn because budgets become tight.
Many public employees accept lower salaries in exchange for long-term benefits such as retirement health coverage. This case reinforces that those promises carry legal weight and that employers cannot rewrite the deal after employees have already fulfilled their end of the bargain.
It also provides important guidance for unions, retirees and public employees negotiating future collective bargaining agreements. Clear contractual language matters, and when lifetime benefits are promised, Wisconsin law may protect those promises.
Standing Up for Wisconsin’s Public Servants
The Racine case represents more than a legal victory—it represents fairness.
These retirees upheld their commitment to serving their community. When the City attempted to walk away from its commitment to them, the MacGillis team fought to ensure those promises were kept.
If you are a public employee, retiree or union facing questions about vested retirement benefits or collective bargaining agreements, the attorneys at MacGillis Law Group have the experience to help protect the benefits you’ve earned.
