An Ohio appeals court has ruled that Cincinnati was within its rights to reduce the medical benefits of a group of early retirees.

Medical benefits of retirees are not considered vested and thus can be changed, the 1st Ohio District Court of Appeals said in its ruling on a lawsuit brought by a group of 49 former city employees who had taken an early retirement deal.

The retirees were promised full health benefits as part of their early retirement deal, which was offered as a way for the city to cut costs. The city council subsequently reduced the benefits.

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