Saginaw retirees sue over health coverage

Retired Saginaw city employees are suing over a change in their health benefits as part of an effort to save about $3 million annually.

Saginaw Retirees LLC has sued in Saginaw County Circuit Court, saying city government breached contracts with the move. A judge granted a temporary restraining order that blocks implementation.

City Manager Darnell Earley says he disagrees with the position taken by the retirees, but he plans to abide by the judge's order.

Saginaw City Council in May approved the change to put all of the city's about 740 retirees on the plan.

Officials said the plan would bring enhanced coverage for some retirees, while it may reduce or offer comparable benefits for others. It's expected to result in higher costs for most.