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City Manager is entitled to retirement benefits in contract

Gerald Peterson was the City Manager of the City of Marquette when he retired after nine years.  His contract stipulated that he would receive the same benefit package that was provided to Department Managers.  At the time of his retirement, Department heads received post-retirement health benefits, however, the City argued that Peterson should not.  It claimed that Peterson had "duped" the City into including this phrase in his contract, that the provision was void because the City commission had never voted to provide him with health insurance, and that since he retired under a defined contribution plan rather than a pension, he "was not receiving a pension" and therefore was ineligible for the stipulated benefits.  The Court of Appeals unanimously disagreed and overturned the local judge's dismissal of Peterson's lawsuit.

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Traverse City, Michigan 49684
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